Business (65.5¢ / mile)
Medical / Moving (22¢ / mile)
Charitable (14¢ / mile)
Custom Rate
*Input value in cents (e.g., 65.5 for Business)
Total Distance:0 miles
Applied Rate:0¢ / mile
Total Reimbursement: $0.00
function updateRateInput() {
var category = document.getElementById("rateCategory").value;
var rateInput = document.getElementById("ratePerMile");
if (category !== "custom") {
rateInput.value = category;
} else {
rateInput.value = "";
rateInput.focus();
}
}
function calculateMileageReimbursement() {
// Get Input Values
var milesStr = document.getElementById("milesDriven").value;
var rateStr = document.getElementById("ratePerMile").value;
// Parse Values
var miles = parseFloat(milesStr);
var rateCents = parseFloat(rateStr);
// Validation
if (isNaN(miles) || miles < 0) {
alert("Please enter a valid number for miles driven.");
return;
}
if (isNaN(rateCents) || rateCents < 0) {
alert("Please enter a valid reimbursement rate.");
return;
}
// Calculation (Rate is in cents, need to convert to dollars)
var rateDollars = rateCents / 100;
var totalReimbursement = miles * rateDollars;
// Display Results
document.getElementById("displayMiles").innerText = miles.toLocaleString() + " miles";
document.getElementById("displayRate").innerText = rateCents + "¢ / mile";
document.getElementById("totalAmount").innerText = "$" + totalReimbursement.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Show Result Box
document.getElementById("resultDisplay").style.display = "block";
}
Understanding the 2023 Mileage Reimbursement Rates
Calculating mileage reimbursement accurately is essential for employees, self-employed individuals, and business owners to ensure compliance with IRS regulations and fair compensation for vehicle use. The Internal Revenue Service (IRS) updates these rates annually to reflect the changing costs of owning and operating an automobile.
Official 2023 IRS Standard Mileage Rates
Business Use: 65.5 cents per mile (up from 62.5 cents in late 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 precision is key. The total reimbursement amount is derived by multiplying the total number of business (or qualified) miles driven by the specific rate assigned to that category.
Formula:Total Miles Driven × (Rate in Cents ÷ 100) = Total Reimbursement ($)
For example, if you drove 1,000 miles for business purposes in 2023:
Miles: 1,000
Rate: 65.5 cents (or $0.655)
Calculation: 1,000 × $0.655 = $655.00
What Costs Are Covered?
The standard mileage rate is designed to replace the need to track actual expenses. It acts as a composite rate covering several fixed and variable costs associated with vehicle ownership, including:
Gasoline and oil
Insurance
Registration fees
Lease payments or depreciation
Maintenance and repairs
Tires
Note that parking fees and tolls are not included in the standard mileage rate and can usually be deducted or reimbursed separately in addition to the mileage calculation.
Documentation Requirements
To claim mileage reimbursement or deductions on your taxes, the IRS requires timely and accurate records. Simply estimating your mileage is not sufficient. A compliant mileage log must include:
The date of the trip.
The starting point and destination.
The business purpose of the trip.
The total miles driven.
The odometer readings at the start and end of the fiscal year.
Using a Custom Rate
While many companies adhere strictly to the IRS standard rate (Safe Harbor rate), employers are free to set their own reimbursement rates. If an employer reimburses at a rate higher than the IRS standard, the excess amount is generally considered taxable income for the employee. If the rate is lower, the employee can no longer deduct the difference on their federal taxes due to changes from the Tax Cuts and Jobs Act (TCJA), though some state laws may differ.
Use the "Custom Rate" option in the calculator above if your organization uses a specific internal rate different from the IRS standard.