Track mileage automatically
Get startedWhat is mileage reimbursement?
Mileage reimbursement is a term referring to the monetary amount you receive for using a personal vehicle for business purposes (And medical, moving and charitable purposes). The reimbursement covers all costs of owning and driving your vehicle for the qualified mileage or kilometres.
Learn more about medical, moving and charity rates and reimbursement in the US.
Now that we have covered what mileage reimbursement is, let’s see how much it is and how you can receive it.
Automate Your Mileage Tracking
Automate Your Mileage Tracking
How much can I receive in mileage reimbursement?
Your local tax authority sets mileage rates each year based on the general costs of owning and running a vehicle. Rates differ based on the purpose of your driving, with business rates being the highest. Mileage reimbursement is calculated on a cents-per-mile or cents per kilometre basis. Ergo, the more you drive for work, the higher your mileage reimbursement will be. There is no upper limit to the miles you can be reimbursed for, with some exceptions, for example, in Australia.
How can I receive mileage reimbursement?
As an employee, you will most likely receive business mileage reimbursement from your employer. If your employer reimburses you at a lower than the official rate or does not at all, you can claim business mileage reimbursement on your annual tax return.
As a self-employed or a business owner, you deduct business mileage on your annual tax return.
In order to receive reimbursement, you need to keep tax-compliant records of your mileage as proof of your claim. Learn more about what records you should keep for your reimbursement:
Tired of logging mileage by hand?
Effortless. IRS-compliant. Liberating.
Related posts
DoorDash Background Check
October 21, 2024 - 2 min read
Here’s what to expect when DoorDash conducts background checks, how Checkr works, and why it may take longer to get approved.
IRS Mileage Guide
January 15, 2024 - 10 min read
Mileage reimbursement in the US — rates and rules for employees, self-employed and employers in the US.
IRS Mileage Rates 2024
January 2, 2024 - 2 min read
The standard mileage rate for business will be 67 cents per mile, effective Jan. 1st, 2024 - up 1.5 cents from the 2023 rate of 65.5 cents.