Mileage Reimbursement

Free Mileage Reimbursement calculator with clear step-by-step results.

About Mileage Reimbursement

Many mileage schemes pay a higher rate up to an annual threshold and a lower rate beyond it, so a claim straddling that boundary has to be split. Miles already claimed determine how much full-rate allowance is left, and any passenger supplement is added separately.

Formulas

Rate split

Full-rate miles = min(claim miles, threshold - miles already claimed)

Total claim

Total = full-rate miles x full rate + remaining miles x reduced rate + passenger miles x supplement

Worked example

With the default values below, Mileage Reimbursement returns Total reimbursement claim of $390.50. Change any input above and every figure here is recalculated in your browser.

Inputs used

Business distance drivenminimum 0 miles: 850 miles
Reimbursement rateminimum 0 $/mile: 0.67 $/mile
Miles before the rate dropsminimum 0 miles: 10,000 miles
Rate above the thresholdminimum 0 $/mile: 0.25 $/mile
Miles already claimed this yearminimum 0 miles: 9,600 miles
Miles carrying a colleagueminimum 0 miles: 200 miles
Passenger supplementminimum 0 $/mile: 0.05 $/mile

Results

Total reimbursement claim: $390.50
Miles paid at the full rate: 400.0 miles
Miles paid at the reduced rate: 450.0 miles
Effective rate achieved: $0.4594

Step by step

1Values used
2Rate split
3Total claim
4Total reimbursement claim= $390.50
5Miles paid at the full rate= 400.0 miles
6Miles paid at the reduced rate= 450.0 miles
7Effective rate achieved= $0.4594/mile

Assumptions and limits

The result is derived only from the 7 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Approved mileage rates, thresholds and the tax treatment of reimbursements are set by tax authorities and change. Confirm current rates and eligibility with your employer's policy and local tax guidance.

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

Approved mileage rates, thresholds and the tax treatment of reimbursements are set by tax authorities and change. Confirm current rates and eligibility with your employer's policy and local tax guidance.

Frequently Asked Questions

Is mileage reimbursement taxable?

Payments at or below the approved rate are generally tax free, while anything above it is usually treated as taxable income. Rules and rates differ by jurisdiction and change annually.

Do commuting miles count?

Normally not. Travel between home and a permanent workplace is generally excluded, while travel to a temporary site or between sites usually qualifies.