Mileage Reimbursement Calculator 2026 — IRS & CRA Rates

Use the calculator above to estimate your mileage deduction for any number of miles or kilometres. It supports all three IRS rate categories (business, medical/moving, and charitable) as well as the tiered CRA per-kilometre rate for Canadian taxpayers. You can also enter a custom rate if your employer reimburses at a different amount.

2026 IRS Standard Mileage Rates

The IRS publishes standard mileage rates each year that you can use instead of tracking actual vehicle expenses. For 2026, the rates are:

The business rate (72.5¢/mile) is the most commonly used. It covers fuel, depreciation, insurance, maintenance, and all other vehicle operating costs. You cannot deduct these costs separately if you use the standard rate. The medical/moving rate applies only to qualified medical travel or active-duty military moves. The charitable rate is set by statute and rarely changes.

2026 CRA Per-Kilometre Rates (Canada)

The Canada Revenue Agency uses a tiered rate structure based on total kilometres driven during the year:

For example, if you drove 15,000 business kilometres in 2026, your CRA deduction would be: (5,000 x $0.73) + (10,000 x $0.67) = $3,650 + $6,700 = $10,350. Taxpayers in the Yukon, Northwest Territories, and Nunavut receive an additional 4 cents per kilometre on both tiers.

Standard Mileage vs Actual Expenses

The IRS gives you two ways to deduct vehicle expenses: the standard mileage rate or the actual expense method. Here is how they compare:

For most people, the standard mileage rate is simpler and produces a comparable deduction. The actual expense method tends to be worth the extra bookkeeping only if you drive a luxury vehicle, have high maintenance costs, or your business-use percentage is very high (above 80%).

What Records the IRS Requires for Mileage Deductions

Under IRC Section 274(d), vehicle expenses are subject to strict substantiation rules. The IRS requires "contemporaneous records" -- meaning you must log trips at or near the time they occur. Your mileage log must include:

• Date of each business trip
• Destination (or route taken)
• Business purpose of the trip
• Miles driven for each trip

Without adequate records, the IRS can deny your entire mileage deduction during an audit -- even if you legitimately drove those miles for business. Keep your mileage logs for at least 3 years after filing (6 years if the IRS suspects a substantial understatement of income).

Frequently Asked Questions