Personal mileage refers to any driving done for non-work-related purposes. Under IRS rules, this type of mileage is not eligible for reimbursement.
It includes any miles that do not qualify as business travel, such as commuting, running personal errands, or driving outside of work-related activities. The IRS specifically classifies travel between an employee’s home and their primary workplace as personal mileage.
Separating personal mileage from business mileage is essential for maintaining tax compliance. Only business mileage can be reimbursed on a tax-free basis or included in mileage reimbursement calculations.
In company vehicle or fleet programs, personal mileage is often tracked to calculate personal use and apply chargebacks. In mileage reimbursement programs, it is excluded entirely from reimbursement calculations and any related tax treatment.
Accurate and consistent mileage tracking helps ensure compliance and prevents personal driving from being treated as a business expense.