California mileage reimbursement rates and calculator (2025)
Introduction
Mileage reimbursement policies in Alaska represent a significant component of business operations and employee compensation strategy. While state agencies operate under established reimbursement protocols, the regulatory framework differs markedly for private sector employers.
Private businesses maintain discretionary authority over general mileage reimbursement policies. However, specific statutory requirements apply under the Alaska Workers' Compensation Act, which mandates employer coverage of travel expenses for medical appointments. These obligations intersect with Alaska's Minimum Wage Law, requiring careful consideration of how transportation costs factor into overall employee compensation.
Implementation of voluntary mileage reimbursement programs often serves dual purposes: ensuring regulatory compliance while enhancing an organization's competitive position in talent acquisition and retention.
Alaska business mileage reimbursement rates
The IRS has set Alaska's 2025 mileage rate at $0.70 per mile when employees use their own cars for work. State government workers must get this amount under Policy AAM 60.140.
If you run a private business, you don't have to pay this rate unless an employee was hurt at work and is covered by the Workers' Compensation Act.
Below are the current Alaska mileage reimbursement rates that align with IRS standards for 2025, accompanied by an analysis showing the year-over-year rate changes.
Alaska mileage reimbursement calculator
To calculate applicable mileage reimbursement in Alaska, use the following:
- Select the appropriate tax year for your calculation period
- Enter the total miles driven to compute eligible reimbursement amounts
The calculator below provides precise reimbursement figures based on current rates and specified mileage inputs.
Alaska mileage reimbursement laws
The regulatory framework governing mileage reimbursement in Alaska establishes distinct protocols for public and private sector employers. State employee reimbursement operates under the comprehensive guidelines outlined in Policy AAM 60.140, while private sector obligations are governed by separate statutory provisions.
Of particular significance for private employers is Section 8 AAC 45.084 of the Alaska Workers' Compensation Act, which establishes specific reimbursement requirements. The following analysis examines these key regulatory provisions and their implications for private sector compliance and operations.
State employee mileage reimbursement following policy AAM 60.140
Policy AAM 60.140 establishes the regulatory framework for state employee mileage reimbursement in Alaska. In alignment with IRS guidelines, the current reimbursement rate effective January 1, 2025, is established at $0.70 per mile.
The policy stipulates two primary conditions for reimbursement eligibility: the travel must serve the state's interests, and the mileage must be incurred for official duties performed outside the employee's designated Duty Station.
Additionally, the policy implements fiscal oversight measures by limiting reimbursement to the most cost-effective travel option. When employees elect to use personal vehicles in lieu of more economical alternatives, such as rental vehicles, reimbursement may be restricted to the lower-cost option's equivalent rate.
Mileage reimbursement details governed by Section 8 AAC 45.084
Section 8 AAC 45.084 of Alaska's Workers' Compensation Act establishes mandatory travel reimbursement requirements for employees seeking medical treatment due to workplace injuries. Under this statutory provision, employers must provide comprehensive travel compensation for injured workers obtaining necessary medical care.
The statute mandates reimbursement for travel to the nearest qualified medical facility capable of providing appropriate treatment. This obligation encompasses compensation for transportation expenses across various modes, including personal vehicle usage, public transportation, and air travel, with the requirement that such transportation be both reasonable and cost-effective for the specific circumstances.
Alaska minimum wage law shaping rules for mileage reimbursement
Alaska's Minimum Wage Law establishes a baseline compensation requirement of $11.91 per hour. While mileage reimbursement is not statutorily mandated under this legislation, incorporating travel compensation into organizational compensation strategies can enhance employer competitiveness and workforce stability.
Implementation of mileage reimbursement policies carries particular significance in Alaska's expansive geographic context, where substantial distances between work locations can impact employee expenses significantly. Such policies serve dual objectives: they provide essential expense management support for employees while ensuring effective compensation remains above statutory minimum wage requirements, accounting for work-related travel costs.
Alaska's unique reimbursement challenges
Alaska's vast geography creates distinctive reimbursement considerations for conventional mileage policies. In rural regions and Bush communities, employees frequently rely on airplanes, boats, and snow machines rather than personal vehicles, necessitating alternative approaches to travel compensation.
Public agencies have developed specialized regulations addressing these unique transportation methods, including per-mile equivalents for private aircraft usage and fuel reimbursement protocols for snowmachines. Private employers facing similar scenarios should establish equitable compensation frameworks, whether through negotiated rates or actual cost coverage for employees utilizing personal boats or aircraft for work-related travel.
Reimbursement structures also differ significantly between employer categories. Public employers must adhere to the per diem limits established by Alaska's department of labor and workforce development, which create practical boundaries for meal and lodging reimbursements during travel periods. In contrast, private organizations maintain greater flexibility, often implementing more generous travel allowances, particularly for executive personnel.
Federal entities operating in Alaska present an additional layer of complexity, as they follow federal General Services Administration (GSA) guidelines rather than state protocols. While these federal standards typically meet or exceed state provisions, they constitute an entirely separate regulatory framework. Consequently, federal employees working in Alaska receive mileage reimbursement according to GSA parameters rather than Alaska's established state rates.
Easily automate reimbursement expenses
Mileage reimbursement regulations in Alaska represent a critical component of equitable business operations, ensuring appropriate compensation for employee travel across the state's extensive geography. The implementation of these expense policies extends beyond regulatory compliance to fundamentally impact workforce satisfaction and operational efficiency.
In Alaska's uniquely vast territorial context, effective mileage reimbursement programs serve as essential elements of comprehensive compensation strategies. Modern expense management solutions, such as Brex, facilitate this process through automated mileage tracking and reimbursement protocols.
Organizations seeking to optimize their expense management processes can benefit significantly from Brex's spend management platform, which automates expense reimbursement workflows, streamlines approval processes, captures receipts automatically, and enforces spending policies without manual intervention. By consolidating corporate cards, expenses, reimbursements, bill payments, travel arrangements, and startup banking functions onto a single integrated platform, Brex eliminates administrative redundancies while ensuring consistent regulatory compliance across all financial operations. Sign up for Brex today to transform your organization's approach to expense management in Alaska's challenging geographic environment.