Mileage reimbursement typically covers the costs associated with using a personal vehicle for business purposes. This can include fuel, maintenance, wear and tear, insurance, and depreciation. The reimbursement rate is usually calculated on a per-mile basis, set by either the IRS (for U.S.-based businesses) or an employer’s own policy. However, it does not cover parking fees, tolls, or other travel-related expenses, which are usually reimbursed separately. The primary goal is to fairly compensate employees for out-of-pocket vehicle costs incurred while performing work duties, without considering commuting from home to work as eligible mileage.