Mississippi state employees now receive $0.70 per mile when using personal vehicles for work, a rate established by the federal government. This reimbursement figure reflects the current valuation of vehicle usage for official business purposes.

Private employers in Mississippi face no legal obligation to adhere to these IRS-determined rates. However, these federal guidelines serve as a practical benchmark for companies seeking to implement fair compensation policies.

The accompanying table provides an overview of Mississippi's current reimbursement rates, showing how they correspond with standard IRS rates and presenting an analysis of year-to-year rate changes.

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 Mississippi, 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.

Section 25-3-41 of the Mississippi Code of 1972 sets up the basic rules for mileage reimbursement in the state, mainly focusing on what state employees should receive. Private employers don't have to follow these exact rules, but they should know that other regulations might still affect them. For example, the Workers' Compensation Act requires private businesses to pay for mileage in certain situations.

How these different laws work together affects how employees get reimbursed throughout Mississippi. Looking closely at these laws shows how they influence reimbursement policies in both public and private jobs. When employers understand what each law requires, they can create policies that both meet legal requirements and satisfy employees' expectations about getting paid back for work travel.

Section 25-3-41 for mileage reimbursement guidelines for state employees

Section 25-3-41 of the Mississippi Code of 1972 stipulates that state employees who utilize their personal vehicles while conducting official state business receive reimbursement at rates equivalent to those paid to federal employees using private automobiles for official federal duties.

The 2025 reimbursement structure implements a two-tiered system based on vehicle availability. State employees receive $0.70 per mile in situations where no government-owned vehicle is available for their use. This rate substantially decreases to $0.21 per mile in circumstances where government vehicles are accessible but employees opt to use their private automobiles instead. This significant rate differential reflects the state's preference for utilizing government-owned vehicles when possible while still accommodating situations where personal vehicle use becomes necessary.

Workers' comp act and mileage reimbursement for injured employees

The Workers' Compensation Law in Mississippi imposes uniform requirements on employers across both private and public sectors, specifically mandating mileage reimbursement for employees who suffer workplace injuries. This legislative framework creates an obligation that applies consistently throughout the state's business environment.

Established in 1948 and administered by the Workers' Compensation Commission, this statute requires employers to compensate workers for transportation expenses incurred when using personal vehicles to travel to medical appointments related to workplace injuries. The regulation represents a longstanding component of Mississippi's employee protection system, ensuring injured workers receive appropriate compensation for necessary medical travel.

Employers should consider informing their staff about the significant time limitation within the Mississippi Workers' Compensation Act. The statute establishes a two-year filing window from the date of injury, after which employees forfeit their ability to claim benefits. This temporal restriction underscores the importance of prompt reporting and claim submission, a procedural detail that carries substantial financial implications for injured workers seeking reimbursement for their medical-related travel expenses.

Note: The Workers' Compensation Act provides exemptions for businesses with fewer than five employees, while also excluding agricultural laborers and certain non-profit workers from its regulatory requirements.

Mississippi’s minimum wage and senate bill 2172 for mileage reimbursement

Mississippi currently operates without a state-specific Minimum Wage Law, instead following the federal minimum wage rate of $7.25 per hour. Although federal wage legislation does not explicitly address mileage reimbursement, it significantly influences compensation requirements. When employee wages fall below the federal minimum in Mississippi due to unreimbursed travel expenses, employers face a legal obligation to provide sufficient reimbursement to ensure compensation meets or exceeds the $7.25 per hour threshold.

Recent legislative developments signal substantial changes to this longstanding arrangement. Senate Bill 2172 introduces Mississippi's first state-level Minimum Wage Law, which will supersede federal standards. The legislation establishes a tiered implementation schedule that will increase the minimum hourly compensation rate to $12.00 beginning January 1, 2025. This figure will subsequently rise to $15.00 per hour effective January 1, 2027. This transition from federal to state wage regulation represents a notable shift in Mississippi's employment compensation framework.

Implementing thoughtful employee mileage reimbursement practices helps Mississippi businesses reduce administrative headaches while keeping employees satisfied. Clear policies ensure compliance with relevant laws like the Workers' Compensation Act and upcoming minimum wage changes. These practices also promote financial transparency and help businesses budget more effectively for travel expenses.

Establish a clear mileage reimbursement policy

Create a formal written expense policy that clearly outlines what qualifies as reimbursable business mileage versus regular commuting. Your document should specify whether you follow the IRS rate ($0.70 per mile for 2025) or use a custom rate, and explain how this aligns with Mississippi's approach for state employees under Section 25-3-41. Include submission deadlines for expense claims, required documentation, and your company's approval process. Make this policy easily accessible in employee handbooks and reference materials.

Use mileage tracking software or apps

Provide employees with reliable tracking tools to simplify mileage reporting. Look for apps with automatic GPS tracking that can distinguish between business and personal trips with minimal effort. These digital solutions create consistent documentation that helps satisfy both IRS requirements and Mississippi's Workers' Compensation obligations if employees need medical treatment for workplace injuries. Digital tracking also produces reports that make reimbursement processing faster and more accurate.

Ensure accurate and timely record-keeping

Require employees to maintain detailed logs showing the date, starting location, destination, business purpose, and total miles for each trip. Establish a consistent schedule for submitting these records—monthly reporting works well for most Mississippi businesses. Clearly communicate what supporting documentation employees need to include, such as receipts for related expenses like parking or tolls. Store these records for at least three years to align with IRS guidelines and protect your business in case of audit.

Communicate clearly and frequently with employees

Make sure all employees understand your mileage reimbursement procedures, especially as Mississippi transitions to its new minimum wage law in 2025. Include mileage policy training during employee onboarding and offer refresher sessions when policies change. Create simple reference guides explaining eligibility, submission procedures, and expense reimbursement timelines. When employees understand the process, they're more likely to submit accurate, timely expense reports and less likely to have concerns about fair compensation.

Regularly review and update your mileage policy

Schedule annual reviews of your mileage reimbursement policy to ensure it remains current with IRS rates, which typically change each January. This is particularly important as Mississippi implements Senate Bill 2172, establishing the state's first minimum wage law. Regular updates demonstrate your commitment to fair compensation practices while preventing potential compliance issues. These reviews also provide an opportunity to assess whether your current approach meets both your business needs and employee expectations in Mississippi's evolving employment landscape.

Mississippi's mileage reimbursement laws combine federal standards with state-specific regulations. State employees receive $0.70 per mile when government vehicles are unavailable and $0.21 per mile otherwise. The Workers' Compensation Act extends requirements to private employers for work-related injuries, with exemptions for businesses with fewer than five employees. The upcoming state minimum wage increases to $12.00 in 2025 and $15.00 in 2027 will further shape compensation practices.

Proper reimbursement policies benefit both parties in the employment relationship. Employees avoid bearing business costs inappropriately, leading to increased job satisfaction and retention. Employers who implement fair and transparent practices demonstrate their commitment to equitable treatment while ensuring compliance with applicable regulations.

Brex's expense management software offers a streamlined solution for businesses managing these requirements. Brex automates the entire reimbursement process from submission to payment, including approvals, receipt capture, and policy enforcement. By integrating corporate cards, expense tracking, bill payment, travel management booking, and startup banking into one place, companies can simplify operations while maintaining consistent policy application. Sign up for Brex today to transform your organization's approach to expense management while maintaining compliance with Mississippi's reimbursement regulations.