# FAVR plan

> US IRS-approved reimbursement model combining a region-calibrated fixed amount with a variable per-mile rate.

**URL:** https://quilometragem.com/glossary/favr-plan

**Summary:** US IRS-approved reimbursement model combining a region-calibrated fixed amount with a variable per-mile rate.

- A FAVR (Fixed and Variable Rate) plan is the IRS-approved model for tax-free reimbursement that pairs a region-calibrated monthly fixed amount (depreciation, insurance, registration) with a per-mile variable rate (fuel, maintenance).
- Used by fleets with five or more drivers; typically cuts mileage cost 20%–30% versus a flat allowance while keeping tax-free status.
- US IRS-approved reimbursement model combining a region-calibrated fixed amount with a variable per-mile rate.

A FAVR (Fixed and Variable Rate) plan is the IRS-approved model for tax-free reimbursement that pairs a region-calibrated monthly fixed amount (depreciation, insurance, registration) with a per-mile variable rate (fuel, maintenance). Used by fleets with five or more drivers; typically cuts mileage cost 20%–30% versus a flat allowance while keeping tax-free status.