Calculate your mileage reimbursement using the 2025 IRS standard rate of $0.70 per mile or the CRA rate of $0.70 CAD per kilometer (first 5,000 km) and $0.64 CAD per kilometer (over 5,000 km). Whether you're self-employed, a contractor, or tracking business miles for your employer, our free calculator helps you determine your exact reimbursement amount and potential tax savings.
This is an estimate only. Actual tax deductions depend on your specific tax situation, province/state, and employment status.
Record-Keeping Required: The IRS requires contemporaneous mileage logs including date, destination, business purpose, and odometer readings for each trip.
Commuting Not Deductible: Travel from home to your regular workplace is personal, not business mileage.
Consult a licensed tax professional or CPA for tax advice specific to your situation.
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Learn About FiscuraMultiply your business miles driven by the applicable standard mileage rate. For 2025, the IRS rate is $0.70 per mile. The CRA uses a two-tier system: $0.70 CAD per km for the first 5,000 km, then $0.64 CAD per km for additional kilometers. Our calculator automatically applies the correct rate based on your jurisdiction.
The IRS standard mileage rate for 2025 is $0.70 per mile for business use of a vehicle. This rate includes operating costs like gas, oil, repairs, tires, insurance, registration, and depreciation. Visit IRS.gov for official rate information.
The Canada Revenue Agency (CRA) uses a two-tier system for 2025: $0.70 CAD per kilometer for the first 5,000 km driven, and $0.64 CAD per kilometer for any distance over 5,000 km. These rates apply to business use of a personal vehicle. Visit CRA.gc.ca for official rate information.
Most employers use the IRS standard mileage rate ($0.70/mile for 2025) for reimbursement, though they can pay more or less. If your employer pays less than the IRS rate and you're a W-2 employee, unfortunately you cannot deduct the difference on your federal tax return due to the Tax Cuts and Jobs Act (TCJA) suspension of unreimbursed employee expense deductions through 2025.
To calculate your actual cost per mile, track all vehicle expenses (gas, maintenance, insurance, depreciation, etc.) for a year and divide by total miles driven. However, using the IRS standard rate is simpler and typically more advantageous for tax purposes since it includes all operating costs and depreciation.
No, W-2 employees cannot deduct unreimbursed mileage expenses on federal tax returns from 2018-2025 due to the Tax Cuts and Jobs Act (TCJA). This suspension of miscellaneous itemized deductions applies through 2025. Self-employed individuals and independent contractors can still deduct business mileage on Schedule C. Some states may allow W-2 mileage deductions on state returns.
An annual mileage calculator estimates your yearly tax deduction by taking your total miles driven, multiplying by the percentage used for business purposes, and applying the IRS or CRA standard mileage rate. For example, if you drive 15,000 miles per year and 70% is business use, that's 10,500 deductible business miles. At the 2025 IRS rate of $0.70 per mile, your annual deduction would be $7,350. This gives you a full-year estimate for tax planning and ensures you're maximizing your mileage deduction.
The IRS standard mileage rate for 2025 is $0.70 per mile for business use. This rate is designed to cover all vehicle operating costs including:
Using the standard mileage rate is simpler than tracking actual expenses and is often more beneficial for taxpayers.
The Canada Revenue Agency uses a two-tier kilometer-based system for 2025:
These rates apply to business use of a personal vehicle and are reviewed annually. The lower rate for additional kilometers recognizes that some costs (like depreciation) decrease on a per-km basis with higher usage.
Business mileage includes driving for work-related purposes:
Not deductible: Commuting between home and your regular workplace is considered personal mileage and cannot be deducted.
The Tax Cuts and Jobs Act (TCJA) suspended unreimbursed employee expense deductions from 2018 through 2025. This means:
Always track your mileage in case your employer provides reimbursement or for state tax purposes where deductions may still apply.
Proper documentation is crucial for IRS/CRA compliance. For each business trip, record:
Modern solution: Use GPS-powered mileage tracking apps that automatically log trips and calculate deductions.
Stop manually logging trips! Fiscura's GPS-powered mobile app automatically tracks your business mileage in the background, links receipts to trips, and generates IRS/CRA-compliant mileage reports.