October 13, 2021

How to calculate mileage for taxes 

Free mileage calculator for 2021

You can calculate your mileage either automatically with the Driversnote app, use the mileage reimbursement calculator below or do it manually. In this article, we will talk about all three options and how they can help you obtain an idea of how much vehicle mileage reimbursement you might be eligible for this year. Whichever option you choose, you need to use the IRS mileage rate for 2021 to get the correct amount. If you are looking for a mileage tracker app - check out the automatic Driversnote app instead.

IRS mileage rate 2021 

The IRS mileage rate is the greatest rate at which you can obtain entirely tax-deductible mileage reimbursement when driving for business. Your company may offer a larger reimbursement rate, but keep in mind that the IRS will tax the excess as income. The IRS mileage rate for 2021 is 56 cents per mile driven for business. That includes vans, pickups, and panel trucks. 

Full overview of the IRS mileage rates for 2021:

$0.56 per mile driven for business
$0.16 per mile for trips taken on for medical purposes
$0.17 per mile for moving (only Armed Forces on active duty)
$0.14 per mile driven in the service of charitable organizations

Mileage rates 2020, 2019, and before 

The IRS mileage rate for 2020 was 57.5 cents per mile, the rate for charity was the same as 2021 - 14 cents per mile, while medical was a cent higher than in 2021. A full overview of the mileage rates for previous years can be found here

You can use the calculator below to estimate the reimbursement you are entitled to for trips in 2021. 

Calculate your mileage automatically

Get the Driversnote mileage tracking app

Keep in mind that this calculator is useful for a general overview of your reimbursement and will not be enough for you to receive your remuneration. To do that, you must keep a compliant mileage log for your trips.

How to calculate mileage reimbursement manually

If you wish to calculate your reimbursement manually, you can do so easily by following the instructions below.

Let’s imagine that you drive your car for both business and private matters and you keep a mileage log so that you can see exactly how many miles you have driven for business. Your records show that you have driven 7000 miles for business in 2021. You have also driven 2000 miles for medical purposes and 1000 miles in the service of charitable organizations. 

To calculate your total reimbursement, you would need to multiply the miles you have driven by the appropriate IRS mileage rate for 2021. Your calculation would look like this:

7000 x 0.56 = 3920$ (business reimbursement)
2000 x 0.16 = 320$ (medical reimbursement)
1000 x 0.14 = 140$ (charity reimbursement)

Now combine all three to get your final reimbursement of $4380. 

To get that reimbursement, you need to make sure that you have logged everything in your mileage log and that you can provide the proof if necessary. One way to do this is by using a mileage tracker app like Driversnote, which will help you never miss adding a trip to your log

What if I want to use the calculator to get reimbursement for 2020? 

The calculator is set to use the standard rates for 2021. If you want to find your reimbursement for 2020, you can use the explanation for the manual calculation above and apply the following rates instead:

The IRS standard mileage rates for 2020

$0.575 per mile driven for business
$0.17 per mile for trips for medical purposes
$0.17 per mile for moving (only Armed Forces on active duty)
$0.14 per mile driven for charity

If you need to calculate for previous years, check mileage rates for 2019, 2018, and earlier here.

How can I make sure my mileage logs are compliant?

The easiest way to make sure your mileage logs are compliant is by using a mileage tracker app such as Driversnote. The app uses the mileage rates for 2021 and if you want to upload some older trips to find your reimbursement, you can do that as well. You can add trips either manually or use automatic mileage tracking to make sure you never miss a trip.

Don’t forget that you need to log not only your business, medical, charity, and moving trips, but personal ones as well if you use the vehicle for private trips. Check out this guide to find out more about how to log your trips in compliance with IRS standards.

We hope you find this mileage reimbursement calculator useful, let us know if you have any questions and we would love to help you out!