Understanding Mileage Rates
SmartMiles calculates the dollar value of each trip using mileage rates. The rate depends on the trip's purpose and the date it occurred.
IRS standard mileage rates
The IRS sets standard mileage rates each year for different purposes:
| Purpose | 2025 Rate | 2026 Rate |
|---|---|---|
| Business | 70 cents/mile | Check IRS.gov for current rate |
| Medical / Moving | 21 cents/mile | Check IRS.gov for current rate |
| Charity | 14 cents/mile | 14 cents/mile (set by statute) |
SmartMiles includes the current IRS rates automatically. When the IRS publishes new rates (usually in December for the following year), SmartMiles updates them so your trips are always valued correctly.
How trip value is calculated
Trip value = distance in miles × mileage rate for the trip's purpose and date.
For example, a 25-mile business trip at the 2025 rate: 25 miles × $0.70 = $17.50
If you change a trip's purpose, the value recalculates automatically using the correct rate.
Custom mileage rates
If your employer reimburses at a different rate, or you want to track at a custom rate, you can create your own:
- Go to Settings > Mileage Rates.
- Tap Add Rate.
- Select the purpose category (Business, Medical, or Charity).
- Enter your custom rate.
- Set the effective date.
Custom rates override the IRS system rates for trips on or after the effective date. You can always see which rate was used for a specific trip in the trip detail view.
Which rate is used
SmartMiles picks the most recent rate that is on or before the trip's date. So if you set a custom business rate effective March 1, all business trips from March 1 onward use that rate, while earlier trips use the previous rate.
Personal trips
Personal trips do not have a mileage rate. Their value is always $0 since personal driving is not tax-deductible.