Mileage on Invoices: What to Include and How to Calculate It

What Is Mileage Reimbursement?

Mileage reimbursement is a per-mile or per-kilometer charge you add to an invoice when you drive for business purposes, such as traveling to a client site or running a job-related errand. Instead of billing fuel receipts, you bill distance traveled × a stated rate.

Can You Charge Clients for Mileage?

Yes, you can charge mileage when you drive to a client site or travel for a job-related task. This is common for contractors, tradespeople, consultants, home service providers, and anyone who travels to deliver work. The best practice is to (1) define your travel policy upfront, (2) use a consistent rate, and (3) list it on the invoice.

The rate is meant to cover the real cost of using a vehicle, including fuel, maintenance, wear and tear, insurance, and depreciation. When you use a standard mileage rate, you usually don’t list fuel as a separate expense for the same trip.

Standard Mileage Rates (2026)

‍If you want to use widely recognized benchmark rates, these are the current standard mileage rates for business driving:

• Canada (CRA): $0.73/km for the first 5,000 km driven for business, then $0.67/km for each additional kilometer.
• United States (IRS): $0.725/mile for business driving (effective for 2026).
• UK (HMRC): 45p/mile for the first 10,000 business miles in the tax year, then 25p/mile after that.

Mileage Reimbursement Calculation

Firstly, decide whether you bill one-way or round trip, then stick to it. Most service businesses bill the full round trip, because that’s the actual travel required to complete the job. Whatever you choose, state it on the invoice so there’s no confusion later on.

Example (round trip):

Client site distance: 45 km each way
Total distance billed: 90 km
Mileage reimbursement: 90 km × $0.72/km = $64.80

Mileage as an Invoice Line Item

Mileage should show up as its own line item under Travel or Expenses, not buried inside your labor rate. This format makes the total easy to review and harder to question later.

Single trip:
Mileage — 90 km @ $0.72/km — $64.80

If there were multiple visits, you can either list each trip or summarize the total.

Summary option:
Travel — 3 site visits, 270 km total @ $0.72/km — $194.40

Actual Fuel Costs as an Alternative

Standard mileage rates work well most of the time, but they can understate costs for heavy vehicles, long-distance travel, or jobs with unusually high fuel use. In those cases, billing actual fuel costs can be more accurate. If you go this route, attach receipts and bill at cost (optionally with a handling markup, if that’s part of your terms).

Don’t mix methods for the same trip. Use either mileage or fuel receipts, and apply the same approach consistently.

Mileage Terms That Prevent Pushback

Mileage charges go smoothly when the client sees them before the work starts. Add one sentence to your quote or proposal:

“Travel is billed at $0.72/km, round trip from [your location], unless otherwise agreed.”

If a client doesn’t like travel billing, it’s better to find out at the quote stage than on the invoice.

Mileage Invoice Checklist

Use this quick checklist before sending the invoice to make sure your mileage charge is complete and easy for the client to review.

☐ Distance stated (km or miles)

☐ Rate cited (CRA, IRS, or HMRC)

☐ Round trip or one-way clearly specified

☐ Mileage listed as separate line item

☐ Travel terms communicated upfront in quote

When mileage is billed clearly, it is much easier for clients to review and approve. With Invoicer.ai, you can create professional invoices and estimates in minutes and separate travel charges, labor, and other costs in a way that is easy to follow.