Delaware's reimbursement rate for state employees remains fixed at 50 cents per mile in 2025, according to Code § 7102, continuing a policy that has shown remarkable stability despite fluctuating fuel costs and economic conditions.

Private sector employers should recognize that while adherence to this specific rate is not mandatory, the state benchmark provides a valuable reference point for establishing equitable compensation policies. This standard offers a tested metric that balances employee expenses against operational costs.

An alternative approach for businesses involves adopting the IRS standard mileage rates, detailed in the following table, which many accountants consider advantageous for tax purposes and administrative simplicity. These federally recognized rates often serve as the industry standard across multiple jurisdictions.

Note: Organizations have flexibility to reimburse employees at rates that differ from the IRS standard. However, any reimbursement exceeding the IRS rate will be classified as taxable income to the employee.

To calculate applicable mileage reimbursement for Delaware, do the following:

1. Select the appropriate tax year for your calculation period
2. 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.

Delaware's approach to employee mileage reimbursement presents a nuanced regulatory structure that balances employer obligations with employee protections. For state employees, the regulations establish a defined structure: a standardized reimbursement rate, specified penalty provisions for improper claims, and explicit exclusions that delineate when reimbursement does not apply.

Private employers operate under a different set of parameters. While the state offers foundational guidelines, it also permits considerable discretion in how businesses implement these policies.

State employee provisions under code §7102

Delaware Code §7102 of Title 29, Chapter 71 establishes the mileage reimbursement rate for state employees at 50 cents per mile, a figure maintained since July 2023. The code specifies that this rate applies exclusively to travel conducted during official state business, with a notable exclusion for commuting between an employee's residence and their primary workplace.

The state maintains stringent enforcement mechanisms for compliance. Delaware Code §7104 imposes monetary penalties for misappropriation of this reimbursement provision, including improper claims for commuting expenses or exaggerated mileage reports. Violations incur fines between $10 and $100, with egregious cases resulting in penalties totaling twice the amount incorrectly claimed.

Workers' compensation requirements under title 19

For private employers, the Workers' Compensation Act represents a non-negotiable legal obligation. Under Delaware's Workers' Compensation Act, codified in Title 19, Chapter 23, Code §2322, employers must provide comprehensive coverage for injured workers, including reimbursement for medical expenses and associated costs. This explicitly encompasses mileage reimbursement for transportation connected to medical treatment or the acquisition of necessary medical supplies.

The financial implications of non-compliance are substantial. Employers who fail to report workplace injuries or who deny valid claims face penalties ranging from $100 to $250 per incident.

Interaction with Delaware's minimum wage provisions

As employers construct their compensation structures, they must account for Delaware's minimum wage requirement of $15.00 per hour in 2025. This wage floor aims to ensure adequate compensation, though certain worker classifications receive exemptions, including qualified executives, agricultural workers, fishing industry employees, volunteers, and junior camp counselors.

Code §910[1] of Delaware's Minimum Wage Law outlines significant consequences for violations. Non-compliant businesses may incur fines between $1,000 and $5,000 per infraction and face civil penalty claims in appropriate jurisdictions.

While Delaware's Minimum Wage Law does not explicitly address mileage reimbursement, an important relationship exists between these regulatory domains. If an employee's effective hourly compensation falls below the minimum wage threshold due to unreimbursed business travel expenses, employers bear responsibility for compensating this differential. Failure to address this shortfall triggers the aforementioned penalty provisions.

Managing Delaware mileage reimbursement requires a smart approach that balances legal requirements with practical business operations. While Delaware does not mandate extensive reimbursement rules, employers must still address wage laws, workers' compensation regulations, and proper record keeping. Here are the most effective practices to minimize legal risks while maintaining financial discipline.

Adopt a written mileage policy

Start with a comprehensive written policy that eliminates guesswork. Your policy should outline when employees qualify for reimbursement, acceptable methods for tracking miles, your company's reimbursement rate, and specific timeframes for expense submission and approval. Make policy education a priority across your organization. When supervisors and staff thoroughly understand reimbursement procedures, you reduce the risk of unintentional violations and administrative bottlenecks that can lead to employee dissatisfaction or compliance problems.

Use standardized record-keeping methods

Implement consistent documentation practices that support accurate reimbursement while simplifying administration. Whether you select a mileage tracking app, standardized forms, or digital logs, providing uniform tools helps validate expense claims and creates a reliable paper trail. Maintain all reimbursement records for the appropriate retention period, typically three to four years for wage-related documentation under Delaware and federal requirements.

Benchmark reimbursement rates

Review applicable rate standards regularly, including Delaware's state employee rate of 50 cents per mile and the current IRS standard mileage rate. While you have flexibility in setting your company rate, regular updates reflect changing vehicle costs and demonstrate good faith efforts toward fair compensation. If choosing a rate below the IRS standard, document your reasoning with concrete factors such as local fuel costs or vehicle maintenance expenses to help demonstrate that your rate reasonably covers employee expenses.

Account for wage and hour implications

Monitor how vehicle expenses affect total compensation, particularly for employees earning near Delaware's minimum wage. When workers use personal vehicles extensively, unreimbursed costs could potentially drop their effective earnings below legal thresholds, creating wage violation exposure. For non-exempt employees working overtime, verify that their compensation remains compliant with wage laws even after accounting for vehicle expenses.

Comply with workers' compensation requirements

Delaware's Workers' Compensation Law creates a specific obligation to reimburse injured employees for mileage related to medical treatment, regardless of your standard business travel reimbursement policy. Enforce strict documentation standards for medical travel claims to ensure accuracy while fulfilling your legal obligations and supporting employees during recovery.

Pay close attention to classification

Verify that workers receiving mileage reimbursement are correctly classified as employees or independent contractors, as misclassification creates substantial liability for unpaid wages, benefits, and taxes. Apply your reimbursement policy uniformly across similar employee groups to avoid potential discrimination claims while building trust through consistent treatment.

By implementing these practical approaches to mileage reimbursement, Delaware employers can maintain compliance while controlling costs. The modest investment in proper policies and administration provides significant protection against more costly legal challenges and supports positive employee relations.

Delaware businesses face distinct considerations when structuring mileage reimbursement programs. With a state employee rate set at 50 cents per mile and specific obligations under workers' compensation laws, employers must balance regulatory compliance with financial practicality. The gap between mandatory and discretionary reimbursement creates both flexibility and responsibility for business leaders who seek to implement fair, consistent policies.

Effective mileage reimbursement practices serve multiple business objectives simultaneously. They protect companies from minimum wage violations, support accurate tax reporting, provide employees with fair compensation for business use of personal vehicles, and establish clear documentation that reduces disputes. When properly implemented, these practices become an asset rather than an administrative burden, contributing to both financial governance and employee satisfaction.

Brex's expense management software transforms how Delaware businesses handle mileage reimbursement. The platform automates expense reimbursement workflows from submission to payment, streamlines approval processes, captures receipts automatically, and enforces spending policies without manual intervention. By bringing corporate cards, expense management, reimbursement, bill pay, travel management booking, and startup banking together on a single platform, Brex eliminates the fragmentation that typically complicates expense management. Sign up for Brex today and simplify your approach to mileage reimbursement while ensuring full compliance with Delaware's regulatory requirements.