The State Accounting Office has established a $0.70 per mile reimbursement rate for Georgia state employees using personal vehicles in 2025, which is aligned with the current IRS mileage rates. The following analysis examines how Georgia's IRS-based mileage reimbursement rates have shifted annually, providing context for employers evaluating their compensation policies.

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 Georgia, 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.

While Georgia law doesn't mandate private employers to reimburse staff for mileage expenses, state employee guidelines can serve as a reference point for developing fair and consistent internal policies.

Mileage reimbursement for Georgia state employees

Georgia compensates state employees according to rates established by the United States General Services Administration (GSA).

For 2025, the reimbursement structure includes a rate of $0.70 per mile when personal vehicles are necessary (Tier 1) and $0.21 per mile when state vehicles are available but personal vehicles are used (Tier 2). These rates factor in fuel costs, maintenance expenses, and vehicle depreciation.

Note: Reimbursements exceeding these established rates are classified as taxable income.

Workers’ compensation law in Georgia

Georgia's Workers' Compensation Law requires mileage reimbursement for employees traveling to and from medical appointments for work-related injuries. As a private employer, this means providing mileage compensation for doctor and physical therapy visits, as well as reimbursing necessary pharmacy travel related to injury recovery.

Note: Non-authorized medical treatment travel is exempt from reimbursement requirements.

Georgia’s minimum wage act for mileage reimbursement

The Minimum Wage Act in Georgia establishes an unusual situation where the state minimum wage falls below the federal standard. The state rate remains at $5.15 per hour, while the federal minimum sits at $7.25. In most cases, private employers in Georgia must follow the higher federal rate despite the lower state threshold.

Title 34, Section 34-4-3 of Georgia law does provide limited exceptions where the state wage might apply. Small businesses with annual sales of $40,000 or less and companies employing five or fewer workers may operate under different parameters. These nuances in wage requirements underscore the importance of understanding both state and federal regulations when developing comprehensive compensation policies.

For Georgia businesses with employees using personal vehicles for work purposes, mileage reimbursement can be necessary to keep wages above the federal or state minimums. If an employee’s wages fall below the required minimum once unreimbursed mileage expenses are deducted from their earnings, a business can be exposed to legal issues.

For Georgia businesses managing workers' compensation claims, O.C.G.A. § 34-9-203 establishes a time frame for when an employer must pay a reimbursement. Once a properly documented mileage claim has been submitted, employers must issue reimbursements within 30 days to comply with Georgia regulations or the employer will be penalized.

For payments more than 30 days late, a 10 percent penalty is added onto the reimbursement, and once a payment is more than 60 days late, a 20 percent penalty is added on to the reimbursement. After 90 days, a further penalty is added and interest will start accumulating.

This requirement necessitates efficient processing systems that can verify, approve, and distribute reimbursements within the mandated timeframe. Proactively developing streamlined processes for handling these time-sensitive reimbursements can help a business remain compliant with state law.

Georgia's approach to mileage reimbursement offers businesses a structured framework despite no state mandates for private employers. The State Accounting Office's rate of $0.70 per mile for 2025 aligns with current IRS standards, providing private organizations a valuable benchmark for developing equitable compensation policies. This rate calculation incorporates vehicle expenses including fuel, maintenance, and depreciation, giving Georgia employers a substantiated foundation for fair reimbursement practices.

Implementing proper mileage reimbursement systems helps Georgia businesses maintain compliance with critical regulatory frameworks. Organizations managing workers' compensation claims must adhere to O.C.G.A. § 34-9-203, requiring reimbursement within 30 days to avoid penalties. Businesses must also ensure employees' effective wages remain above federal minimum thresholds even after accounting for unreimbursed travel expenses.

Brex's expense management software provides Georgia businesses with a complete solution for complex reimbursement requirements. The platform automates the entire expense reimbursement workflow while streamlining approvals, digitizing receipt capture, and automatically enforcing company expense policies. This automation eliminates manual processing inefficiencies while ensuring consistent compliance with Georgia's strict reimbursement deadlines. By combining corporate cards, expense management automation, bill pay capabilities, travel management booking, and startup banking on a single integrated platform, Brex enables organizations to maintain accurate financial records while providing employees with prompt reimbursement for their business travel expenses. Sign up for Brex today.