Free tool · US and Canada · 2026
Mileage calculator
Turn business driving into a deduction or a tax-free reimbursement at the 2026 IRS rate per mile, or the CRA per-kilometre allowance limits. Runs in your browser; nothing is saved.
The driving
Which rules?
Driving on or after July 1, 2026. Self-employed deduction, and the most an employer can reimburse tax-free under an accountable plan.
Compare a reimbursement or allowance with the limit.
Standard mileage amount
1,200 miles × 76¢
$912.00
Deduction or tax-free reimbursement
$912.00
IRS 2026 standard mileage rates (Notice 2026-10). Parking and tolls for business trips are deductible on top. Commuting is not business driving. An estimate, not tax advice.
2026 mileage rates
As of October 25, 2026.
| Rate for 2026 | Amount |
|---|---|
| IRS business, from july 1 | 76 cents a mile |
| IRS business, january to june | 72.5 cents a mile |
| IRS medical, from july 1 | 23.5 cents a mile |
| IRS medical, january to june | 20.5 cents a mile |
| IRS moving, from july 1 (armed forces and intelligence community only) | 23.5 cents a mile |
| IRS charitable | 14 cents a mile |
| CRA allowance, provinces | 73 cents a km for the first 5,000 km, 67 cents after |
| CRA allowance, Yukon, NWT and Nunavut | 77 cents a km for the first 5,000 km, 71 cents after |
| CRA operating cost benefit (employer-provided car) | 34 cents a km of personal driving |
More detail on both countries' rules is in our article on 2026 mileage rates.
How the calculation works
United States
Miles × the rate for the purpose. 1,200 business miles driven after July 1 × $0.76 = $912.00 (at the January to June rate of $0.725 it would be $870.00). Self-employed people and business owners can deduct that instead of actual car costs (for a car you own, use the standard rate in the first year the car is used for business to keep the option later). Parking and tolls on business trips are deductible on top. Employers can reimburse employees up to this amount tax-free under an accountable plan.
Canada
The first 5,000 business kilometres in the year are at the higher rate, the rest at the lower one. 8,000 km in Ontario: 5,000 × $0.73 = $3,650.00, plus 3,000 × $0.67 = $2,010.00, for $5,660.00. If you have already paid an employee for some kilometres this year, enter them so the 5,000 km tier is not counted twice.
The allowance must be based only on business kilometres, the employer cannot also reimburse the same costs, and the employee should keep a trip log. A rate a little above or below the prescribed one can still be reasonable; one far off it can make the whole allowance taxable.
Sources
- IRS: 2026 standard mileage rates (Notice 2026-10, IR-2025-128, December 29, 2025)
- IRS Announcement 2026-11 (IRB 2026-29): mid-year increase from July 1, 2026
- IRS: Standard mileage rates
- Department of Finance Canada: 2026 automobile deduction limits and expense benefit rates (January 2026)
- CRA: Automobile and motor vehicle allowances
Questions
What is the IRS mileage rate for 2026?
There are two 2026 rates. For business driving it is 72.5 cents a mile from January 1 to June 30, and 76 cents from July 1, after the IRS raised it mid-year because of fuel prices (Announcement 2026-11). The medical rate, and the moving rate for eligible armed forces and intelligence community members, went from 20.5 to 23.5 cents on the same date. The charitable rate stays at 14 cents, set by law. Use the rate for the date of each trip, so a full-year log needs two calculations.
What is the CRA mileage rate for 2026?
The reasonable per-kilometre allowance limit is 73 cents for the first 5,000 km driven for business in the year and 67 cents for each km after that. In Yukon, the Northwest Territories and Nunavut it is 77 and 71 cents. These are the amounts an employer can deduct for tax-free allowances paid to employees.
Can self-employed Canadians use the per-km rate?
Not as a deduction. The CRA rates are for employer allowances. If you are self-employed, you deduct the business share of your actual vehicle costs (fuel, insurance, maintenance, licence, interest and capital cost allowance), based on business kilometres divided by total kilometres. Keep a log either way.
Is a mileage reimbursement taxable?
In the US, a reimbursement at or below the standard rate under an accountable plan, backed by a mileage log, is not wages. Anything above the rate, or paid without records, is taxable pay. In Canada, an allowance based only on business kilometres at a reasonable rate is not taxable; a flat allowance not tied to kilometres generally is, and goes on the T4.
Does commuting count as business mileage?
No. Driving between home and your regular place of work is personal in both countries. Trips from your workplace to a customer, a supplier or a job site are business.
What should a mileage log record?
For each trip: the date, where you started and where you went, the business purpose, and the distance. Also note the odometer reading at the start and end of the year so total and business driving can be compared.
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Related
- All free tools
- Self-employment tax calculator
- Depreciation and CCA calculator, for the vehicle itself
- Employee cost calculator
- Form T2125 business income guide
General information, not tax advice. Confirm the rules that apply to you with the IRS, the CRA or your accountant.
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Every trip logged, paid and billed.
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