How to Calculate Mileage for Revenue: Step-by-Step with Examples
You know the rates exist — but how do you actually apply them? Ireland's progressive mileage band system means your rate per kilometre changes as your annual distance increases. This guide walks through the calculation process step by step, with 3 worked examples of increasing complexity.
The 4-Step Calculation Process
Determine your vehicle's engine category
Check your vehicle registration cert (log book) for the engine capacity in cc. This determines which column of rates applies to you.
Electric and hybrid vehicles use Category B (1,201–1,500cc) rates. For all current rates, see our mileage rates guide.
Check your cumulative annual distance
Look up your total business kilometres driven so far this calendar year (year-to-date). This is the number that determines which band you're in — not the distance of this individual trip.
Critical point: The bands are cumulative and annual. They reset to zero on 1 January each year. If you're calculating a trip in March, you need to know how many business km you've already driven in January and February.
Identify which band you're currently in
Based on your YTD distance, find your current band:
| Band | Cumulative YTD Distance | Rate (Over 1,500cc) |
|---|---|---|
| Band 1 | 0 – 1,500 km | €0.5182 |
| Band 2 | 1,501 – 5,500 km | €0.9063 |
| Band 3 | 5,501 – 25,000 km | €0.3922 |
| Band 4 | 25,001 km + | €0.2587 |
Rates shown for Over 1,500cc category. See all engine categories.
Calculate — split if crossing a band boundary
If your entire trip stays within one band, it's simple: distance × rate = claim. But if the trip pushes you past a band boundary, you must split the distance — the kilometres before the boundary at the current rate, and the kilometres after at the next band's rate.
3 Worked Examples
All examples use the Over 1,500cc rate column (the most common for Irish company cars). The same logic applies to all engine categories — swap the rates from the rates table.
Simple: First trip of the year
Single band — no split neededScenario: It's January. Cian drives his 1.6L diesel from Galway to Limerick and back for a client meeting — 200 km. His YTD distance is 0 km.
Step 1: Engine = 1.6L = Over 1,500cc (Category C)
Step 2: YTD distance = 0 km
Step 3: Band 1 (0–1,500 km)
Step 4: Entire trip in one band. No split.
200 km × €0.5182 = €103.64
After this trip, Cian's YTD is 200 km — still in Band 1.
Band crossing: Band 1 into Band 2
Split required at the 1,500 km boundaryScenario: Niamh has done 1,400 km YTD. Her next trip is Waterford to Kilkenny and back — 250 km. This will push her past the 1,500 km boundary.
Step 1: Over 1,500cc
Step 2: YTD = 1,400 km
Step 3: Currently in Band 1 (1,400 is under 1,500)
Step 4: Trip crosses into Band 2. Remaining Band 1 km = 1,500 − 1,400 = 100 km. Band 2 km = 250 − 100 = 150 km.
Band 1: 100 km × €0.5182 = €51.82
Band 2: 150 km × €0.9063 = €135.95
Total: €51.82 + €135.95 = €187.77
After this trip, Niamh's YTD is 1,650 km — now in Band 2. All future trips this year start at Band 2 rates.
High mileage: Band 2 into Band 3
The rate drop that catches high-mileage teamsScenario: By May, Niamh has done 5,300 km YTD. Her next trip is Cork to Tralee and back — 400 km. This crosses into Band 3 at 5,500 km.
Step 1: Over 1,500cc
Step 2: YTD = 5,300 km
Step 3: Currently in Band 2 (5,300 is under 5,500)
Step 4: Trip crosses into Band 3. Remaining Band 2 km = 5,500 − 5,300 = 200 km. Band 3 km = 400 − 200 = 200 km.
Band 2: 200 km × €0.9063 = €181.26
Band 3: 200 km × €0.3922 = €78.44
Total: €181.26 + €78.44 = €259.70
Watch the rate drop. Band 2 pays €0.9063/km. Band 3 pays €0.3922/km — less than half. For a sales team with 5 reps each doing 15,000+ km/year, getting this crossover wrong means thousands in over- or under-payments across the year.
The "Lesser Of" Rule
Before you apply the band calculation, you need to determine the claimable distance. When travelling to a temporary work location, Revenue requires you to claim the lesser of two distances:
Home to the temporary workplace
Normal place of work (office) to the temporary workplace
Worked example
Your office is in Dublin city centre. You live in Maynooth (25 km from office). A client meeting is in Naas.
You claim 30 km (the lesser). Even though you might drive from the office (45 km), Revenue only allows the shorter distance.
For current rates to apply to your lesser-of distance, see our full rates reference.
Commute Deduction
If your business journey starts from home and passes through or past your normal place of work, you must deduct the commuting distance. Commuting is never claimable.
Worked example
You live in Swords (north Dublin). Your office is in Dublin city centre — 15 km commute. A client is in Bray (south Dublin), 60 km from your home, passing through the city centre.
You claim 45 km, not 60 km. The first 15 km is your commute — it would have happened anyway, business trip or not.
When it doesn't apply: If your journey doesn't pass your normal place of work — e.g., you live in Swords and travel to a client in Drogheda (north, away from your Dublin office) — there's no commute to deduct. Apply the "lesser of" rule instead.
Frequently Asked Questions
Related Resources
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