Hawaii’s mileage reimbursement rates follow the Internal Revenue Service-determined mileage reimbursement rate, which for 2025 is $0.70 per mile. While this rate represents a mandatory benchmark for public sector employers in Hawaii, private businesses have discretion in their reimbursement policies.

The IRS-determined rate—which serves as both a tax deduction guide and compensation standard—applies automatically to state workers travelling for official duties. Private sector employers, however, face binding requirements only in specific circumstances involving injured workers covered under existing statutes.

This table shows how Hawaii's IRS-based mileage reimbursement rates have increased annually.

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 Hawaii, 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.

Although Hawaii's Statute §3-10-13 establishes comprehensive parameters for state employee reimbursements, private sector employers navigate separate regulations. These requirements have many implications for corporate expense management and potential liability exposure.

For private employers, thorough understanding of these reimbursement protocols provides essential risk mitigation while also safeguarding both corporate interests and employee financial entitlements.

Code §3-10-13 of the mileage reimbursement policy for state employees

Hawaii Code §3-10-13 creates a structured mileage compensation framework under which state employees become eligible for reimbursement when government fleet vehicles are either unavailable or impractical for official functions. The statute authorizes department executives or designated proxies to approve use of private vehicles for governmental operations.

Reimbursement amounts match the Internal Revenue Service maximum allowable rates applicable to any public servant, which is $0.70 per mile traveled in 2025.

Code §12-10-25 for mileage reimbursement under the workers' compensation act

Hawaii's Workers' Compensation Act, under Code §12-10-25, requires employers to cover travel expenses when employees seek medical treatment for injuries sustained on the job.

When workers need medical attention, Hawaii employers face several responsibilities. They must cover mileage expenses, especially in cases where an employee's condition or location prevents the use of public transportation. The law grants employees the freedom to choose their own physician and permits a one-time change of doctor, provided the worker notifies their employer beforehand.

Note: Reimbursement only covers mileage for the most direct route and excludes the distance of the employee's regular commute.

Hawaii's Wage and Hour Law, Chapter 387, establishes the state's minimum wage requirements. As of 2025, employers must pay workers a minimum of $14.00 per hour, though there are scheduled increases that will continue to roll out in subsequent years.

For employers with tipped workers, Hawaii permits specific wage adjustments. Employers may pay tipped staff up to $1.25 less than the standard hourly minimum through January 1, 2028, when this tip credit increases to $1.50 per hour. The law requires meticulous documentation of both hours worked and gratuities received to demonstrate compliance.

While Hawaii's Minimum Wage Law contains no explicit provisions for mileage reimbursement, there exists a clear relationship between travel expenses and minimum wage requirements. When employees' unreimbursed mileage costs effectively reduce their earnings below the $14.00 per hour minimum wage, employers must provide additional compensation to ensure wages meet or exceed this amount.

Avenue One, an investment platform and marketplace that enables transparent and efficient large-scale investments in single-family rentals, needed a unique solution to employee mileage reimbursement.

Using Brex to create and assign spend limits for its fleet-specific expenses, Avenue One found an efficient and cost-effective solution to reimbursing its employees who were often on the road and in various markets. “We wanted to restrict the field team’s spend to gas and routine car maintenance,” said Katherine Spiller, assistant controller at Avenue One. “We were able to create a vendor category for this. If the vendor doesn’t fall under the gas or car maintenance category, then the card will be declined.”

With the preapproved spend categories set through Brex, managers only review expenses by exception, reducing unnecessary reviews by 10 hours each month, Katherine added. “We’re effectively pre-authorizing expenses before they happen and enforcing those policies through the card itself,” she said.

The upgraded mileage reimbursement process using fleet cards that integrate with NetSuite vastly reduced the need for time-consuming expense reconciliation.

Managing Hawaii's mileage reimbursement regulations effectively requires understanding the distinctions between requirements for public and private employers. Government entities must follow specific compensation structures, while private businesses can maintain discretion—except when handling workers' compensation claims.

Well-designed mileage reimbursement policies can deliver value beyond just compliance. These programs safeguard against potential minimum wage violations while simultaneously boosting employee satisfaction and retention in Hawaii's competitive hiring market.

Brex's expense management software gives Hawaii businesses a complete solution for mileage reimbursement challenges. The platform automates expense processing, approvals, receipt capture, and policy enforcement. By combining corporate cards, expense automation, bill pay, travel management booking, and startup banking on one platform, Brex helps businesses maintain accurate records while ensuring prompt employee reimbursements. Sign up for Brex today.