Understanding the 2024 Gas Reimbursement Rate
Managing vehicle expenses for work can be complex. For 2024, the primary benchmark used by employers and self-employed individuals in the United States is the IRS Standard Mileage Rate. This calculator helps you estimate your total reimbursement based on your specific mileage.
How is the Rate Calculated?
While often referred to as a "gas reimbursement," the standard mileage rate is designed to cover much more than just fuel. The 67 cents per mile rate factors in the fixed and variable costs of operating an automobile, including:
- Depreciation: The loss of vehicle value over time.
- Insurance: Annual premiums.
- Repairs and Maintenance: Tires, oil changes, and mechanical repairs.
- Gas and Oil: Fuel consumption based on national averages.
- Registration Fees: Taxes and tag fees.
How to Use This Calculator
- Enter Mileage: Input the total number of miles you have driven specifically for business purposes. Do not include commuting miles (driving from your home to your regular place of work), as these are generally not reimbursable.
- Verify Rate: The calculator defaults to the 2024 IRS rate of 67 cents. If your company uses a different rate (some reimburse less, some more), you can adjust this field.
- Calculate: Press the button to see the total dollar amount you should expect for reimbursement or tax deduction purposes.
Example Calculation
If you are a sales representative who drove 1,200 miles in January 2024 to visit various clients, your calculation would look like this:
1,200 miles × $0.67 = $804.00
This $804.00 is intended to cover the wear on your car and the gas used during those trips.
Is Gas Reimbursement Taxable?
Generally, if your employer reimburses you at a rate equal to or lower than the IRS standard rate (67 cents/mile in 2024) under an "accountable plan," the payment is tax-free. It is not considered income.
However, if your employer pays you a higher rate (e.g., 75 cents/mile), the excess amount (8 cents/mile) may be considered taxable wages. Conversely, if you are self-employed, you can use this rate to calculate the deduction you can take on your annual tax return to lower your taxable income.