How to Track Mileage for Reimbursement from Your Employer (2026 Guide)
Updated: Oct 1
If you drive your own car for work, your employer owes you for every business kilometre or mile, but you only get paid for the trips you can show. Here is how to track mileage for reimbursement in a few minutes a month, including what your employer needs to see and how to fill in a mileage expense report.
Drive your own car for work? Fuelshine logs every work drive automatically and turns it into a reimbursement report you can send your manager, plus an audit-ready mileage log for tax time. Free to start: Get it on Google Play · Download on the App Store
What your employer needs to see
Policies differ, but almost every employer asks for the same five things for each business trip: the date, where you started and went, the business purpose (such as "client meeting"), the distance, and the amount at your company's rate. A claim recorded at the time of the trip is far easier to approve than one rebuilt from your calendar on the last day of the month.
2026 mileage reimbursement rates
Many employers pay the government rate, and some set their own. Your claim follows your company's policy. For reference:
Canada (CRA): 73¢ per km for the first 5,000 business km in the year, then 67¢ per km. Add 4¢ per km in the Northwest Territories, Yukon and Nunavut.
United States (IRS): 72.5¢ per mile from January 1 to June 30, 2026, and 76¢ per mile from July 1.
Example: 800 business km in Ontario at 73¢ is $584, and 600 business miles in August at 76¢ is $456. Short trips add up. Missing 30 business km a week is about 1,500 km a year, roughly $1,005 at 67¢ a km.
How to track mileage for reimbursement in 5 steps
Check your company's policy. Find out the rate, what counts as business driving, and when claims are due.
Install a mileage tracking app. Fuelshine is free to start on Google Play and the App Store.
Set your rate. Choose the CRA rate, the IRS rate, or the rate your company pays.
Drive as usual and tag your trips. Allow location access so trips are logged on their own, then mark each one Business or Personal.
Send your report on time. At month-end, export your business trips as a mileage expense report and send it to your manager or payroll.
How to fill in a mileage expense report
Most mileage expense reports have the same columns: date, from, to, business purpose, distance, rate and amount (distance × rate), with the total distance, total amount, your name and the reporting period at the bottom. With Fuelshine, the report is built from your tagged Business trips, with the distance and amount at your chosen rate already filled in.
Mistakes that cost you money
Skipping short trips. They add up faster than you think.
Guessing distances. Rounded-down numbers are money left behind.
Missing the deadline. Some companies won't pay mileage older than 60 or 90 days.
Using the wrong rate. In the US, trips after July 1, 2026 are paid at 76¢, not 72.5¢.
Counting your commute. Home to your usual workplace generally isn't reimbursable. Office to client usually is.
Every business kilometre or mile you don't record is money you don't get back. Install Fuelshine, drive as usual, and send your first reimbursement report at the end of the month.
Frequently asked questions
How do I track mileage for reimbursement?
Record every business trip with the date, start and end points, business purpose and distance, then multiply the distance by your company's rate. An automatic app like Fuelshine records trips as you drive and builds the report for you, so short trips aren't missed.
What is the best app to track mileage for work reimbursement?
Look for automatic trip detection, one-tap Business or Personal tagging, your company's rate or the CRA/IRS rate built in, and a report you can send your manager. Fuelshine does all of this and is free to start on Google Play and the App Store.
What should a mileage expense report include?
The date, starting point, destination, business purpose and distance for each trip, plus the rate, the amount per trip, and the totals for the period. Many employers also ask for your name, the reporting period and your manager's approval.
What is the mileage reimbursement rate for 2026?
In Canada, the CRA rate is 73¢ per km for the first 5,000 km and 67¢ per km after that. In the US, the IRS rate is 72.5¢ per mile until June 30, 2026 and 76¢ per mile from July 1. Your employer may use its own rate.
Is mileage reimbursement taxable?
A per-kilometre or per-mile reimbursement at a reasonable rate, based on the distance you actually drove, is generally not taxable income for you. A flat car allowance usually is. Check with payroll or an accountant for your situation.
Can I claim mileage for my commute to work?
Generally no. Your regular drive between home and your usual workplace is personal. Driving from your workplace to clients or job sites, or between them, is usually business mileage.
Related guides
Fuelshine helps you keep accurate records. It is not tax advice. Check with your accountant, employer, the CRA or the IRS for your situation.
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