Gas Reimbursement Rate 2023 Calculator

2023 Gas & Mileage Reimbursement Calculator

Calculate your reimbursement based on the 2023 IRS Standard Mileage Rates.

Business Use (65.5¢ per mile) Medical or Moving (22¢ per mile) Charitable Organizations (14¢ per mile) Custom Rate

This defaults to the 2023 IRS Business rate but can be edited.

Total Reimbursement

$0.00

function updateRate() { var type = document.getElementById('tripType').value; var rateInput = document.getElementById('ratePerMile'); if (type === 'business') { rateInput.value = 65.5; } else if (type === 'medical') { rateInput.value = 22; } else if (type === 'charity') { rateInput.value = 14; } // If custom, we leave the current value or var user type } function calculateReimbursement() { var miles = document.getElementById('milesDriven').value; var rateCents = document.getElementById('ratePerMile').value; var resultBox = document.getElementById('resultContainer'); var amountDisplay = document.getElementById('finalAmount'); var breakdownDisplay = document.getElementById('breakdown'); // Validation if (miles === "" || rateCents === "") { alert("Please enter both miles driven and the reimbursement rate."); return; } var milesNum = parseFloat(miles); var rateNum = parseFloat(rateCents); if (isNaN(milesNum) || isNaN(rateNum) || milesNum < 0 || rateNum < 0) { alert("Please enter valid positive numbers for miles and rate."); return; } // Calculation: (Miles * Cents) / 100 = Dollars var totalDollars = (milesNum * rateNum) / 100; // Formatting Output amountDisplay.innerHTML = "$" + totalDollars.toFixed(2); breakdownDisplay.innerHTML = milesNum + " miles × " + rateNum + "¢/mile"; resultBox.style.display = "block"; }

Understanding the 2023 Gas Reimbursement Rate

For the tax year 2023, tracking your vehicle mileage is crucial for employees, business owners, and gig workers looking to be reimbursed or claim tax deductions. While often referred to colloquially as a "gas reimbursement," the IRS Standard Mileage Rate is designed to cover all costs associated with operating a vehicle, including gas, insurance, wear and tear, and repairs.

On December 29, 2022, the Internal Revenue Service (IRS) issued Notice 2023-03, which announced the optional standard mileage rates for 2023. These rates increased significantly from the previous year due to rising fuel and vehicle costs.

Official 2023 IRS Mileage Rates

• Business Use: 65.5 cents per mile (up 3 cents from mid-2022).
• Medical & Moving: 22 cents per mile (for qualified active-duty members of the Armed Forces).
• Charitable Organizations: 14 cents per mile (set by statute).

How the Calculation Works

The formula for calculating your mileage reimbursement is straightforward, but accuracy is key for tax compliance and employer reporting.

Formula: Total Reimbursement = (Total Business Miles Driven) × (Rate per Mile)

For example, if you drove your personal vehicle 1,200 miles for business purposes in 2023, the calculation would be:

1,200 miles × $0.655 = $786.00

What Does the Rate Cover?

It is a common misconception that this rate only covers gasoline. The 65.5 cents per mile figure is a comprehensive estimate that accounts for:

• Gasoline and oil
• Depreciation of the vehicle
• Insurance premiums
• Registration fees
• Maintenance and repairs
• Tires

Frequently Asked Questions

Can I use this calculator for 2024 rates?
No. This calculator is specifically configured for 2023 tax year rates (65.5 cents). The IRS updates these rates annually. For 2024, the business rate increased to 67 cents per mile.

Is federal reimbursement mandatory for employers?
Under federal law, employers are not strictly required to reimburse employees for mileage unless the expense drops the employee's net wages below the minimum wage. However, many states (like California and Illinois) have specific labor laws requiring reimbursement, and it is a standard competitive practice in most industries.

Do I need to keep logs?
Yes. To claim a deduction or receive tax-free reimbursement from an employer, you must maintain a timely log containing the date, mileage, destination, and business purpose of every trip.