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Mileage allowance: rates, calculations and reimbursement

What is an expense report?

An expense report is a document employees use to justify business-related costs they incurred while on the job. These expenses can range from meals to train tickets.

An employee cannot deduct the amount reimbursed through an expense report from their salary; typically, it is not taxable. For an expense report to be approved, the expenses must be:

  • Job-related: Essential for performing work duties.
  • Reasonable: Proportional to the task and industry standards.
  • Documented: Supported by receipts or other proof of purchase.

What are mileage expenses?

Mileage expenses are costs employees incur when using their personal vehicles for business travel. Trips can be work commutes or travel for other professional reasons. Tax authorities publish an annual mileage rate that determines mileage expense reimbursements.

Mileage allowance vs. mileage report

A mileage allowance refers to the reimbursement rate per kilometer (or mile, depending on the country) authorized by the tax authorities.

On the other hand, a mileage report is a document employees use to detail their business travel using a personal vehicle and request reimbursement based on the mileage allowance. Employees need to submit mileage reports to receive compensation for their travel expenses. Using a company template or expense management software simplifies the process of creating these reports.

All micro-entrepreneurs are required to pay income tax and social security contributions. However, they can opt for the "versements libératoires" (VFL) system, allowing them to make flexible payments throughout the year based on their sales. This empowering system helps you avoid the burden of a large, lump-sum payment, giving you more control over your finances.

What information goes on a mileage report?

While there are no legal requirements for specific information on a mileage report, including certain details ensures efficient processing by the employer. Common information on a mileage report includes:

  • Employee information (name, address, etc.)
  • Company information (name, address, etc.)
  • Date of business trip
  • Expense amount
  • Payment method
  • Reason for the trip
  • Trip details (departure and arrival locations, mileage, etc.)
  • Employee and employer signatures

Employees should keep receipts for any mileage-related expenses to complete and expedite the reimbursement process. These receipts should be attached to the mileage report for complete expense justification.

How are mileage expenses calculated?

Reimbursing mileage expenses follows a scale set by tax authorities, updated yearly. The amount you get back hinges mostly on how far you've driven and your vehicle's engine power. Electric vehicles typically receive a 20 percent increase in the mileage allowance. To calculate your reimbursement, you need to multiply the distance you've traveled by the corresponding rate from the table provided.

The provided table showcases the 2023 mileage allowance scale based on administrative horsepower (HP) and distance traveled.

Mileage Allowance Scale (France, 2023)

Administrative Power (in HP) Distance (d) up to 5000 km Distance (d) from 5,001 km to 20,000 km Distance (d) over 20,000 km
3 HP and less d x 0.529 (d x 0.316) +1,065 d x 0.370
4 HP d x 0.606 (d x 0.340) + 1,330 d x 0.407
5 HP d x 0.636 (d x 0.357) + 1,395 d x 0.427
6 HP d x 0.665 (d x 0.374) + 1,457 d x 0.447
7 HP and over d x 0.697 (d x 0.394) + 1,515 d x 0.470


An employee with a 5 HP car travels 3,000 kilometers for business purposes. According to the table, the employee would multiply the distance (3,000 km) by the corresponding rate (0.636) to determine the mileage reimbursement amount (approximately $1,908).

This table allows employees to estimate their potential mileage reimbursement.

Managing mileage reports with Expensya

Processing mileage reports, like any business expense documentation, can be time-consuming for both employees and employers. Expense management solutions like Expensya can streamline this process. Expensya's features, including Optical Character Recognition (OCR) and a user-friendly interface, help reduce costs, errors, and administrative time.

Want to see how it works? Schedule a demo or meeting today.

Customer stories

Discover the ways that Expensya customers are simplifying their travel and expense management with a solution that just works.

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More expense management, payment and travel resources

Our library of case studies, videos, events, guides and reports are available to help you more efficiently manage employee expenses.

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Expensya Barometer Report

Learn about the trends in the “what” and “how” of employee spend, pulled from actual expense management data, in the annual Expensya barometer report.

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