Mileage Allowance Calculator

Work out mileage allowance instantly with clear inputs, formula shown and shareable results.

About Mileage Allowance Calculator

Mileage paid up to the approved rate is a tax-free reimbursement of running costs. Anything paid above that rate is a benefit and taxed, while paying below it may allow the employee to claim relief on the difference.

Formula

Mileage

Exempt = distance × min(rate paid, approved rate); excess is taxable

Worked example

With the default values below, Mileage Allowance Calculator returns Total Mileage Claim of $16,800.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Distance Claimedaccepts 1–100,000: 1,200
Rate Paid Per Unit Distanceminimum 0: 14
Approved Rate Per Unit Distanceminimum 0: 10
Marginal Tax Rateaccepts 0–60 %: 30 %

Results

Total Mileage Claim: $16,800.00
Exempt Portion: $12,000.00
Taxable Portion: $4,800.00
Tax On The Excess: $1,440.00

Step by step

1Values used
2Mileage
3Total Mileage Claim= 16,800.00
4Exempt Portion= 12,000.00
5Taxable Portion= 4,800.00
6Tax On The Excess= 1,440.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.

Frequently Asked Questions

What does the approved rate cover?

Fuel, wear and tear, insurance and depreciation attributable to business use.

Can I claim if paid less than the approved rate?

In several regimes yes — the shortfall can be claimed as an employment expense.