Company vehicle personal-use calculator
If you drive a company car for personal trips, the IRS treats that as a taxable fringe benefit. The cents-per-mile rule multiplies personal miles by the IRS standard mileage rate (72.5 cents for January 1 – June 30, 2026 and 76 cents from July 1), if the vehicle qualifies. Enter the miles for each period so each is valued at its own rate.
Estimated taxable fringe
The cents-per-mile rule has vehicle fair-market-value limits. Some employers must use the lease-value rule instead. Confirm with payroll.
Sources
- IRS Publication 15-B — Fringe benefits
- IRS — Standard mileage rates
- IRS Announcement 2026-11 — Mid-year 2026 rate (IRB 2026-29)
Note. These tools are indicative. Inspection, emissions and registration rules vary by state. Confirm with your DMV or the IRS before you file or renew.
Frequently asked questions
What is the cents-per-mile rule?
Employers may value personal use at the IRS standard mileage rate when the vehicle’s value is under the published limit and the car is regularly used in the business.
Does commuting count as personal?
Yes. Home-to-work commuting in a company vehicle is generally personal use.
Is this the same as UK company car tax?
No. The US uses fringe-benefit valuation. The UK uses Benefit in Kind percentages on list price.
