Employer-Provided Cents-Per-Mile Method

Use the cents-per-mile method to determine the amount to include in the compensation of an employee who uses an employer-provided vehicle for personal travel.

To open this calculator, click Calculators in the toolbar, and then click Business > Employer Provided Cents-Per-Mile Method in the left panel.

You can export the data as a PDF file or clear all data that you entered. For more information, see Financial calculators.

The following conditions apply.

  • You can only use the cents-per-mile method if the FMV of the vehicle is less than the federally-inflation-adjusted limit when first made available to any employee.
  • The automobile must be either (i) in regular use in the employer’s business, or (ii) driven at least 10,000 miles per year, primarily by employees.
  • Once you adopt the method, you must continue to use it as long as the vehicle qualifies, though you can use the commuting valuation rule for any period if the automobile qualifies.

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