The Louisiana Department of Administration has established a mileage reimbursement rate of $0.70 per mile for 2025. This rate applies to state employees who use personal vehicles for business travel. Private employers may adopt this state-determined rate as a reasonable standard for compensating employees' work-related transportation expenses.

The table below illustrates the historical IRS mileage reimbursement rates that Louisiana has generally adhered to over time.

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 Louisiana, 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.

Louisiana maintains distinct laws and guidelines for mileage reimbursement, particularly affecting state workers and those injured on the job. The statutory framework for state employee reimbursement is set in RS 39:231, which allows the Commissioner of Administration to establish travel policies for the state.

Private employers aren’t subject to these provisions, though compliance becomes mandatory when reimbursing staff under Louisiana's Workers' Compensation Act and meeting minimum wage requirements.

RS 39:231 for state employees' mileage reimbursement

Louisiana state employees receive mileage compensation at $0.70 cents per mile when using personal vehicles, as the state follows the mileage rates set by the IRS. Yet, there are only specific circumstances where personal vehicles can be used.

RS 39:231 allows the Louisiana Commissioner of Administration to set state travel policy within the state travel guide. The travel policy stipulates that state employees should use a state-owned vehicle when it’s available, and if not, a private vehicle can be used for distances less than 99 miles. For trips longer than 99 miles, the travel policy says state employees should rent a vehicle with one of the state’s preferred rental companies.

To use a private vehicle for business-related travel further than 99 miles, state employees must get prior approval from their department head. These travel costs are also reimbursed at the state-approved mileage rate. Although the IRS sets reimbursement rates for motorcycles, Louisiana’s travel policy doesn’t allow motorcycles to be used for business-related travel.

Mileage reimbursement requirements for private employers

Private employers in Louisiana aren’t required by state law to reimburse mileage for employees except under unique circumstances. One of those instances is when an employee qualifies for Workers’ Compensation.

Under RS 23:1203, employers need to provide mileage reimbursement for an employee’s travel in order to receive medical care. Employees must be reimbursed at the same rate that the state of Louisiana reimburses its employees, or $0.70 per mile in 2025.

The other instance where a private employer in Louisiana may need to provide mileage reimbursement is to comply with minimum wage requirements. Unreimbursed mileage is deducted from the employee's hourly rate, and if the employee’s pay falls below Louisiana’s minimum wage of $7.25 an hour, employers can be subject to penalties.

Creating mileage reimbursement policies tailored to Louisiana's laws requires careful consideration. Here are strategies to develop effective policies for businesses operating in the state:

Establish robust documentation protocols

Create standardized procedures for tracking business travel across Louisiana. Document key details including date, departure point, destination, business purpose, and precise odometer readings or digital mapping verification to support reimbursement requests. Leverage expense management software to simplify this process and generate accurate records effortlessly.

Build efficient approval processes

Implement streamlined review processes that balance proper oversight with prompt processing. Digital approval pathways through platforms like Brex can automatically direct requests to appropriate managers, accelerating expense reimbursement while maintaining essential financial controls.

Clearly communicate and evaluate policies

Develop precise written guidelines specifying reimbursement rates, qualifying travel categories, required documentation, and submission timelines. Consistent communication ensures all team members understand procedures and expectations when traveling for business and requesting reimbursements.

Perform regular compliance assessments

Establish routine audits of expense claims to confirm accuracy and adherence to policies. These periodic assessments help detect potential issues early and reflect a commitment to financial integrity while ensuring equitable treatment across the organization.

Louisiana’s mileage reimbursement policies create unique procedures for state employees, but private employers are not required to reimburse their employees for business-related travel using private vehicles.

Nonetheless, it can be beneficial for employers to institute employee mileage reimbursement policies for several reasons. First, it can help an employer comply with minimum wage requirements and allow for easy reimbursement in cases of Workers’ Compensation. Secondly, it can demonstrate to employees that they’re valued, helping to retain talent and keep morale high.

Brex's expense management platform allows Louisiana businesses to establish expense policies in the platform, streamlining the request and approval process. Creating documentation is automated through Brex’s platform, and with integration into existing accounting software, compliance and tax preparation no longer require intensive manual inputs. Brex adapts to the needs of business owners looking for an efficient way to cover employee expenses, from mileage to other costs. Sign up for Brex today.