IRS FAVR-compliant reimbursement

Stop paying your drivers the wrong rate

IRS FAVR-compliant — audit-ready before your first payment.

Location-specific rates, not a national average.

Save $1,000–$6,500 per driver, per year.

Request a demo ↗ View pricing

Rate Table

Compliance

Onboarding

Audit Log

Locations

3

Active Drivers

12

IRS Rate

$0.725/mi

Your Avg Rate

$0.44/mi

LOCATION	VEHICLE CLASS	INSURANCE/YR	FIXED/MO	TOTAL/MI	vs IRS $0.725
Canton, MI 48187	New Compact Sedan	$2,291	$433/mo	$0.4348	−$0.265
Plymouth, MI 48170	New Compact Sedan	$1,962	$388/mo	$0.3981	−$0.302
Southfield, MI 48034	New Compact Sedan	$4,892	$725/mo	$0.5668	−$0.133

$0.725

IRS standard rate 2026 (record high)

$0.44

Average RatesReady rate — Metro Detroit

38%

Average savings vs IRS flat rate

$49

Per location per month

How it works

Location-specific rates. Automatically.

RatesReady automatically pulls up to date location and insurance data to calculate the right rate for each of your locations — so you are never overpaying or underpaying based on a national average.

Address-level precision

RatesReady automatically pulls up to date location and insurance data to calculate the right rate for each of your locations — so you are never overpaying or underpaying based on a national average.

Monthly rate refresh

Rates update monthly using current gas pricing models and carrier data. Your admin gets a clean summary every month so you always know where things stand.

IRS FAVR compliant

Stay compliant with ease. RatesReady uses state of the art modeling, AI, and deep industry experience to keep your reimbursement program fully IRS-compliant — without the complexity.

19 vehicle classes

New, old, and used — sedans, SUVs, trucks, and EVs across three model year ranges. Every driver gets the rate that matches their vehicle.

SMS driver onboarding

Drivers onboard in 3 text messages — name, license photo, VIN photo. No app download required. Annual MVR checks run automatically.

Full audit trail

Every rate change, MVR check, and compliance action is timestamped and logged. IRS audit-ready from day one.

Browse by state

Rates across all 50 states

Select your state to see how FAVR rates compare to the IRS standard in your market.

Browse by delivery type

Find your franchise category

Savings vary by vehicle mix, driver miles, and market. See estimates for your specific delivery type.

Get started

Request a demo

Tell us about your operation and we will be in touch within one business day.

Full name

Phone number

Company email

Franchise / company

Number of locations

✓

We will be in touch soon

Thanks for reaching out. Someone from our team will contact you within one business day to walk you through RatesReady and scope the right plan for your locations.

About RatesReady

The reimbursement platform built for franchise operators

Franchise delivery operators are caught in a compliance trap. The IRS flat rate of $0.725/mile is the easy answer — but it is almost never the right one. It overestimates what driving actually costs in your specific markets, which means you are paying drivers more than you have to, or worse, underpaying and creating wage liability.

RatesReady was purpose-built for franchise operators managing 3–20 delivery locations. We give you a fully IRS-compliant FAVR reimbursement rate for every location — calculated at the address level, refreshed monthly, and backed by a complete compliance record your accountant and your drivers can trust.

The experience is built to match your actual workflow: operators manage everything from one dashboard, drivers onboard in three text messages, and compliance status is visible at a glance across your entire portfolio.

Why franchises choose RatesReady

01

IRS-compliant from day oneEvery rate is generated under IRS Rev. Proc. 2024-25. All six required FAVR components are included — insurance, depreciation, fuel, maintenance, registration, and taxes. Your program is audit-ready before your first payment.

02

Location-specific accuracyA one-size-fits-all flat rate is always wrong for someone. RatesReady calculates the right rate for each of your locations based on actual local insurance costs and vehicle data — not a national average.

03

Best-in-class operator experienceThe dashboard is built for busy operators, not HR departments. Your entire fleet — rates, compliance, driver records, and audit trail — in one place, accessible in seconds.

04

Drivers onboard in three textsNo app download. No portal login. Drivers reply to a text with their name, license photo, and VIN. That is the entire onboarding process — and it takes under five minutes.

Why franchises need this

Three reasons operators switch to FAVR

The IRS flat rate is the default — not the right answer. Here is what changes when you switch.

$

Save real money

Cost reduction that compounds

At $0.725/mile for 20,000 miles you are paying $14,500 per driver per year. The FAVR rate in most suburban markets is $0.40–$0.50/mile. Across 10 drivers that is $45,000–$65,000 per year you no longer have to spend — or that goes back to drivers as higher net pay.

✓

Defensible in any audit

IRS compliance with documentation

The IRS FAVR method requires six cost components, annual updates, driver eligibility verification, and documented records. RatesReady produces all of this automatically — so when you get a notice, you have answers ready, not spreadsheets to reconstruct.

↑

Better for your drivers

Transparency builds retention

Drivers know when they are being underpaid. A documented, location-specific FAVR rate shows your team you have done the math. When they ask why their reimbursement changed, you have a real answer — and that matters for retention in a high-turnover industry.

Savings calculator

See your savings

Simple, transparent pricing

Pay per location. Not per driver.

Unlimited drivers per location. No per-seat fees. Annual contracts — request a demo to get started.

IRS 2026 standard mileage rate: $0.725/mile · RatesReady avg Michigan rate: $0.44/mile · Your savings: up to 39%

STARTER

$49

per location / month

Best for operators testing FAVR or with 1-3 locations.

✓Address-level FAVR rates — 19 vehicle classes

✓Monthly rate refresh + email notification

✓CSV export — IRS audit-ready format

✓Basic compliance checklist

✓90-day audit trail

—MVR checks

—SMS driver onboarding

Everything you need, nothing you do not

Feature	Starter $49/loc	Compliance $79/loc	Enterprise Contact us
RATE ENGINE
Address-level FAVR rates	✓	✓	✓
Vehicle classes	19	19	19
Monthly rate refresh	✓	✓	✓
CSV export	✓	✓	✓
COMPLIANCE
IRS FAVR checklist	Basic	Full	Full
Audit trail	90 days	Unlimited	Unlimited
License + insurance tracking	—	✓	✓
DRIVER MANAGEMENT
SMS driver onboarding	—	✓	✓
MVR checks / driver / year	—	2	Unlimited
Continuous MVR monitoring	—	—	✓
Drivers per location	Unlimited	Unlimited	Unlimited
PLATFORM
Multi-franchise dashboard	✓	✓	✓
API access	—	—	✓
White-label	—	—	✓
Support	Email	Email + chat	Dedicated

The math

RatesReady pays for itself in weeks

At 4 drivers per location doing 20,000 miles/year, switching from the IRS $0.725 rate to the FAVR rate saves $1,160/driver/year in reimbursement cost.

$0.725

IRS rate 2026 (record high)

$0.44

Avg Michigan FAVR rate

$1,160

Savings per driver / yr

3 wks

To break even on Compliance plan

FAQ

Common questions

Do I have to use FAVR? Can I just use the IRS rate?

You can use $0.725/mile — but it means overpaying. FAVR calculates the actual driving cost in your specific location. In suburban Michigan, that is almost always $0.28–$0.33 less per mile than the IRS flat rate.

What does "unlimited drivers" mean?

You pay per location, not per driver. 2 drivers or 12 — same price. Other platforms charge per driver per month, which adds up fast. With RatesReady, your cost is fixed per location regardless of how many drivers you add.

Why did the IRS rate go up in 2026?

The IRS raised the standard mileage rate from $0.70 to $0.725 — the highest it has ever been — reflecting higher insurance, fuel, and depreciation costs nationally. This makes FAVR more valuable: the gap between the IRS flat rate and your actual location cost just got larger.

How does the contract work?

RatesReady is sold on annual contracts. Pricing is set per location and locked for the term. To get started, request a demo and we will walk you through the program, confirm your locations, and scope the right plan for your operation.