Using your car as a nanny can add convenience to your job, but it also comes with real costs. Whether you are driving children to school, activities, playdates, or running errands for your nanny family, you are entitled to mileage reimbursement for work-related driving. Understanding how reimbursement works ensures you are protected financially while staying professional and organized.

If you are using your car as a nanny for your nanny job, here is what you need to know.

1) Using Your Car as a Nanny? You Are Entitled to Mileage Reimbursement

If you live in the state of California and you use your personal vehicle for job-related tasks, your employer must reimburse you for those miles. This applies to driving children to activities, grocery runs, school pickups, library trips, or any errands done on behalf of the family. While this varies based on state laws, mileage reimbursement is considered best practice nationwide and is legally required in various states. 

It is important to note that commuting to and from work does not count towards mileage reimbursement. You are responsible for the cost of getting yourself to your job. Reimbursement only applies to driving performed during work hours for work purposes.

When using your car for your job, it is your responsibility to track your mileage accurately. There are lots of apps out there that can help you do just that. 

2) What Is the IRS Mileage Reimbursement Rate?

Household employers typically use the IRS standard mileage reimbursement rate to compensate nannies for business use of a personal vehicle.

For 2026, the IRS standard mileage rate is 72.5 cents per mile for business use of a vehicle. This rate is determined annually and is designed to account for the total cost of operating a vehicle, including:

• Gas
• Oil changes
• Maintenance
• Tires
• Insurance
• Repairs
• Depreciation

This reimbursement rate is not meant to be added on top of a gas stipend. It already factors in fuel and overall vehicle expenses. When using your car for your nanny duties, it’s recommended that you receive the per-mile rate rather than a separate gas allowance.

3) How to Structure Reimbursement

Before regularly using your car as a nanny, sit down with your employer and discuss expectations. How much driving will you realistically be doing each week? Are there daily school drop-offs, extracurriculars, or long commutes to classes and activities?

Once you have an estimate, decide together how reimbursement will be handled. Some families reimburse weekly, others biweekly or monthly. The key is consistency and clarity.

Agree in writing on the reimbursement process. This protects both you and your employer and prevents misunderstandings later.

4) Track Every Mile

Accurate tracking is essential when using your car as a nanny. Guessing at the end of the month is not recommended.

Mileage tracking apps help to make the process simple. Many automatically detect drives and allow you to categorize them as business or personal trips. Most are compatible with both iOS and Android devices.

Here are a few popular options:

a) Hurdlr

What we love: Unlimited automatic mileage tracking.

b) MileIQ

What we love: It is basic, easy to use, and has a free option.
Downside: The free version typically limits the number of drives per month. Paid plans offer unlimited tracking.

c) QuickBooks Self-Employed

What we love: Automatic mileage tracking, simple invoice creation, payment recording, and the ability to link bank or credit card accounts to track expenses.
Downside: There’s no free version. It requires a monthly subscription.

Many apps offer both free and premium versions. If you are regularly using your car and tracking other job-related expenses, a paid version may be worth considering.

Try to log your mileage daily so nothing slips through the cracks, both for your sake and your car’s! And as a reminder, please do not use these apps while you are driving. They should be used and figured out prior to operating a vehicle. 

5) Professionalism Matters

Using your car for your nanny job also means maintaining safe driving habits and proper insurance coverage. Make sure your auto insurance policy is up to date and covers regular passenger transport. Keep your vehicle clean and safe for children, with properly installed car seats if required.

Discuss expectations about car seat installation, tolls, parking fees, and wear and tear in advance. Clear communication avoids confusion and strengthens trust.

Using your car as a nanny should not cost you money out of pocket. When you are driving for work purposes, you are entitled to reimbursement at the current IRS rate. By tracking your miles carefully, agreeing on a reimbursement schedule, and maintaining professionalism, you can protect both your finances and your working relationship.

A little organization goes a long way in making sure those miles truly make sense and don’t turn into unexpected bills for you.