Tax-Free Car Allowance (TFCA)
See if TFCA is Right for Your Team
A Tax-Free Car Allowance (TFCA) reimburses employees tax-free for using their personal car for work, as long as business miles are logged using simple mileage tracking tools that help reduce their tax burden.
A Flexible, Tax-Efficient Alternative to Car Allowances
Cardata builds and manages your TFCA program from start to finish. Payments can be a flat monthly amount, a per-mile rate, or a mix of both, while staying aligned with IRS accountable plan rules.
Why Organizations Choose Cardata for TFCA
TFCA is flexible and tax-free when it’s done right.
Less Money Lost to Taxes
Traditional car allowances are treated as taxable income, which means a large portion can be lost to payroll taxes. TFCA ties reimbursements to documented business mileage under IRS accountable plan rules, keeping payments tax-free.
Flexible Program Design
TFCA gives you flexibility in how reimbursements are structured. Programs can include a fixed monthly amount, a per-mile rate, or a combination of both, depending on the role, territory, or driving patterns.
Simple to Manage
TFCA is straightforward to run. As long as business miles are logged properly to meet the tax test, there aren’t additional IRS program rules. Any company policies or compliance requirements are up to you.
More Predictable Costs
TFCA can include a fixed monthly amount, which makes budgeting more predictable than pure per-mile programs. At the same time, mileage tracking keeps reimbursements tied to the miles employees actually drive for work.
Talk to a TFCA Expert
Technology That Powers Your TFCA Program
Cardata combines managed services with purpose-built technology to keep your program compliant and easy to run.
Track
Employees who drive for work capture business mileage automatically through Cardata Mobile, generating compliant trip logs that support accountable plan requirements.
Safeguard
Our system checks total reimbursements against the IRS standard mileage rate equivalent. If reimbursements go over the limit, we flag it and properly categorize it for tax purposes.
Approve
Administrators manage oversight with dashboards, reporting tools, and approval workflows that provide visibility into mileage trends and reimbursement totals.
Pay
Reimbursements can be issued through secure direct-to-driver payments, separated from payroll to preserve tax treatment and simplify administration.
Integrate
Cardata integrates into your finance and HR workflows, delivering clean, audit-ready reporting that supports budgeting and forecasting.
Employees who drive for work capture business mileage automatically through Cardata Mobile, generating compliant trip logs that support accountable plan requirements.
Our system checks total reimbursements against the IRS standard mileage rate equivalent. If reimbursements go over the limit, we flag it and properly categorize it for tax purposes.
Administrators manage oversight with dashboards, reporting tools, and approval workflows that provide visibility into mileage trends and reimbursement totals.
Reimbursements can be issued through secure direct-to-driver payments, separated from payroll to preserve tax treatment and simplify administration.
Cardata integrates into your finance and HR workflows, delivering clean, audit-ready reporting that supports budgeting and forecasting.
What Makes Cardata Different
Our expertise ensures that your TFCA program runs smoothly, stays tax-efficient, and works for your team long term.
Considering TFCA for Your Team?
See how a fully managed, IRS-compliant TFCA program can cut down tax waste, make budgeting easier, and reimburse drivers fairly without the strict rules of traditional vehicle programs.
