Mileage Invoice: How to Bill Clients for Miles (2026)
Mileage invoice guide: how to bill clients for miles driven, using the 2026 IRS rate of 72.5 or 76 cents as a benchmark, with a sample invoice and mileage log.
Quick answer: A mileage invoice bills a client for the miles you drove on their job, calculated as billable miles × your agreed rate per mile and shown as its own line item. Many US businesses use the IRS business rate as a benchmark: 72.5 cents per mile for January to June 2026 and 76 cents from July 1, 2026.
Driving to clients costs real money in fuel, wear and insurance. If your quotes do not cover it, a mileage line on the invoice is the cleanest way to recover it. This guide explains how mileage billing works, which rate to use, a worked example with a sample invoice, how to keep the log that backs it up, and the mistakes that cause disputes.
What is a mileage invoice?
A mileage invoice is either a full invoice for travel costs alone (for example, a courier or a mobile notary billing per mile) or, more often, a normal service invoice with a mileage line added. The line shows the number of billable miles, the rate per mile and the total. It may also reference the trip dates and destinations.
Mileage is one type of reimbursable or pass-through cost. For the wider picture, including parking, tolls, airfare and materials, see our guide to the reimbursable expenses invoice.
How much should you charge per mile in 2026?
There is no legal rate for billing clients: it is whatever you agree. In practice, most businesses pick one of these benchmarks.
| Approach | Rate example | Best for |
|---|---|---|
| IRS business standard rate | 72.5 cents (Jan 1 to Jun 30, 2026); 76 cents (Jul 1 to Dec 31, 2026) | Consultants, contractors, corporate and government clients |
| Flat trip or travel fee | e.g. $25 per visit within 30 miles | Home services, mobile beauty, pet services |
| Free radius plus per-mile | First 20 miles free, then 76 cents per mile | Trades with a defined service area |
| Vehicle-specific rate | A higher per-mile rate for trucks, trailers or towing | Towing, hauling, equipment delivery |
The IRS raised the business rate mid-year because of fuel price increases; the IRS standard mileage rates page lists both 2026 figures, and our explainer on the IRS mileage rate for 2026 covers the details. If your contract says you bill at the IRS rate, use the rate in effect on the date you drove, not the invoice date.
How to calculate mileage on an invoice
The formula is simple: billable miles × rate per mile = mileage charge. The work is in deciding which miles are billable.
- Decide the method in your agreement. Round trip from your base, one way, or miles beyond a free radius.
- Measure each trip. Use odometer readings or a mapping tool, and round consistently (to one decimal or whole miles).
- Apply the right rate for the trip date. Trips before July 1, 2026 at 72.5 cents and trips after at 76 cents if you follow the IRS rate.
- Total the miles for the billing period. Group by rate if the period crosses a rate change.
- Add the mileage line(s) to the invoice. Show miles, rate and amount.
- Add tolls and parking separately at cost, with receipts.
Worked example: a consultant's mileage across the rate change
An independent IT consultant visits a client's two offices during June and July 2026. The contract says mileage is billed round trip at the IRS business rate in effect on the travel date.
- June trips: 3 round trips of 42 miles = 126 miles × $0.725 = $91.35
- July trips: 4 round trips of 42 miles = 168 miles × $0.76 = $127.68
- Total mileage: 294 miles, $91.35 + $127.68 = $219.03
- Parking at the downtown office: 4 × $12 = $48.00 (at cost, receipts attached)
Sample mileage invoice
From: Ridgeway IT Consulting LLC, Denver, CO. To: Alpine Dental Group. Invoice #: RIT-2026-073. Date: August 3, 2026. Terms: Net 15.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| On-site network support, June and July visits | 14 hrs | $110.00 | $1,540.00 |
| Mileage, June 2026 (3 round trips, IRS rate) | 126 mi | $0.725 | $91.35 |
| Mileage, July 2026 (4 round trips, IRS rate) | 168 mi | $0.76 | $127.68 |
| Parking, downtown office (at cost, receipts attached) | 4 | $12.00 | $48.00 |
| Total due | $1,807.03 | ||
Check: $1,540 + $91.35 + $127.68 + $48 = $1,807.03. Add a note listing trip dates, or attach the log. In this example the consulting service is not subject to sales tax, so neither is the mileage; your state may differ, which you can check with our sales tax calculator and state guidance.
You can build this layout in our free invoice generator by adding each mileage period as a line with the miles in the quantity field and the per-mile rate in the price field.
What should a mileage log include?
The log is your proof if a client questions the charge, and it doubles as support for your own tax deduction. Record trips when they happen. Our mileage log template has a ready layout.
| Date | From | To | Purpose / client | Odometer start | Odometer end | Miles |
|---|---|---|---|---|---|---|
| 07/08/2026 | Office, Denver | Alpine Dental, Lakewood | Server install | 48,210 | 48,231 | 21 |
| 07/08/2026 | Alpine Dental, Lakewood | Office, Denver | Return | 48,231 | 48,252 | 21 |
Billing clients vs deducting mileage on your taxes
These are two different things, and mixing them up causes errors.
- Billing: What you charge a client is a price set by your contract. It can be the IRS rate, a flat fee or something else.
- Deducting: As a self-employed person you generally include billed mileage in gross income, then deduct your vehicle costs using either the standard mileage rate or actual expenses. Our comparison of standard mileage vs actual expenses shows how to choose.
- Commuting: Travel between home and a regular place of business is generally not deductible, even if you bill a client for some of it.
This is general information, not tax advice. A tax professional can confirm how to treat billed mileage in your situation, and how much of your income to set aside (see how much to set aside for taxes).
How to write a mileage policy into your quote or contract
Most mileage disputes are really disputes about what was agreed. A short clause in your quote, estimate or contract settles it before the first trip. Cover four points: the rate, which miles count, how the rate changes, and what is billed separately.
Sample wording you can adapt:
- Mileage is billed at the IRS business standard mileage rate in effect on the date of travel, currently 76 cents per mile, for round trips from our office at 120 Main Street.
- Service visits within 25 miles of our shop are included in the service call fee. Travel beyond 25 miles is billed at $0.76 per mile for the additional distance, each way.
- Tolls and parking are billed at cost with receipts. Travel time is billed at 50% of the hourly rate.
- Mileage is billed monthly with a log of dates, destinations and miles attached.
If you quote a fixed price, decide whether travel is already inside it. Many trades build typical travel into the price and add mileage only for jobs outside their usual area, which keeps quotes simple. For long-term clients, review the rate once a year or whenever the IRS changes the business rate, as it did in July 2026.
Corporate and government clients often have their own travel policies that cap mileage at the IRS rate or require pre-approval for trips. Ask for the policy before you start, and match your invoice wording to it so the accounts payable team can approve the line without questions. Our freelance contract template shows where clauses like these fit.
Which businesses bill mileage most often?
- Trades and home services: often a service call fee plus mileage outside the service area. See service call fees.
- Towing and hauling: hook-up plus a per-mile rate; our towing invoice template shows the layout.
- Car rentals: daily rate plus charges for miles over an allowance, covered in the car rental invoice template.
- Consultants, inspectors, notaries and photographers: mileage at the IRS rate or a flat travel fee, sometimes with travel time billed too. See how to bill for travel time.
Common mileage invoice mistakes
- No agreement in advance. Surprise mileage charges are the most disputed line on an invoice. Put the rate and method in the quote.
- Using the wrong IRS rate. In 2026, trips before July 1 and after June 30 have different business rates.
- Calling a marked-up rate a reimbursement. Label above-cost charges as travel or mileage fees, not reimbursement at cost.
- Lumping mileage into labor. A separate line is clearer and easier to approve.
- No log. Without dates and distances, you cannot defend the charge or the deduction.
- Applying sales tax without checking. Treatment of travel charges varies by state.
Bill mileage clearly and get paid for it
A good mileage invoice shows billable miles, the per-mile rate and the trip period on separate lines, backed by a simple log and an agreement made before the work. Use the 2026 IRS business rate as a benchmark if you want an easy, defensible number. Create your next mileage invoice in our free invoice generator: it is free, needs no sign-up, and downloads a PDF built in your browser.
Frequently asked questions
Can I charge clients for mileage?
Yes, if your contract or quote says you will, or if it is standard in your trade and the client agrees. Mileage is a business cost like materials, and many contractors, consultants and mobile service providers bill it as a separate line. Put the rate and what counts as billable miles in writing before work starts, so the charge does not surprise the client when the invoice arrives.
What mileage rate should I charge clients in 2026?
There is no required rate for billing clients; it is a price you agree. Many businesses use the IRS business standard mileage rate as a benchmark: 72.5 cents per mile for January 1 to June 30, 2026, and 76 cents per mile for July 1 to December 31, 2026. Some charge a flat travel fee or a higher rate for heavy vehicles or towing.
Is mileage I bill to a client taxable income?
For a self-employed person, mileage you bill a client is generally part of your gross business income, and you then deduct your own vehicle costs using either the standard mileage rate or actual expenses. Reimbursements under an employer's accountable plan work differently. Ask a tax professional how this applies to you, because the treatment depends on your setup.
Should I charge sales tax on mileage on an invoice?
It depends on your state and on whether the underlying service is taxable. Some states treat travel or delivery charges tied to a taxable sale as part of the taxable price, while others exempt separately stated charges. If your main service is not taxable, mileage usually is not either. Check your state revenue department's guidance before adding tax to a mileage line.
Do I bill mileage from my home or from the job site?
Whatever your agreement says. Common approaches are door to door from your base, round trip miles minus a free radius (for example, the first 20 miles included), or only miles beyond your normal service area. For tax deductions, the IRS has separate rules about commuting, which is generally not deductible, so keep the billing method and your tax records clearly separate.
What records should I keep for a mileage invoice?
Keep a log for each billable trip: date, start and end location, purpose or client, odometer readings or mapped distance, and total miles. Attach a summary or the log itself to the invoice if the client asks for it. The same log supports your own tax deduction, and the IRS expects records made at or near the time of the trip.
Can I bill travel time and mileage together?
Yes, they are separate costs and often appear as separate lines: mileage covers the vehicle, travel time covers your hours on the road. Some businesses bill both at full rates, others bill travel time at a reduced rate or include a set amount in the service call fee. State your policy in the quote so clients understand both charges.
Can I mark up mileage like materials?
You can set any mileage rate the client accepts, but presenting it as a reimbursement at cost while charging more is misleading. If you bill above the IRS rate, label the line as a travel or mileage charge at your stated rate rather than as reimbursement. Government and some corporate clients cap mileage at the IRS or federal travel rate in their contracts.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
Try the invoice generator