For 2025, New Hampshire's mileage reimbursement rate stands at $0.70 per mile, matching the standard mileage rate determined by the IRS. State employees must receive this rate under MOP 1301, but private businesses have flexibility here.

That said, offering a comparable rate can significantly boost morale and demonstrate that you value your employees' contributions. Let's look at how these rates have changed over the years according to IRS standards.

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 New Hampshire, 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.

Understanding New Hampshire's mileage reimbursement guidelines is essential for smooth business operations. Knowledge of these rules helps both government agencies and private companies avoid expensive errors.

State employees fall under MOP 1301 regulations, while private businesses should pay attention to Section 281-A:23 of the Workers' Compensation Act. Both laws ensure fair compensation for employees who use personal vehicles for work purposes.

Here's a clear breakdown of New Hampshire's key mileage reimbursement regulations.

MOP 1301 for state employees' mileage reimbursement

New Hampshire's MOP 1301 policy requires state agencies to reimburse employees at the IRS rate when they use personal vehicles for work-related travel. This reimbursement covers all vehicle types—cars, vans, pickups, and electric vehicles.

The guidelines specify that employees should only use personal vehicles when state-owned ones aren't available. The Department Head or their Designee must approve this use beforehand, ensuring proper oversight of transportation expenses.

Section 281-A:23 of NH workers' compensation act for mileage reimbursement

Private companies employing five or more full time workers in New Hampshire must create temporary alternative work options for injured employees under Workers' Compensation Act RSA 281-A:23-b

Section 281-A:23 requires all employers to provide injured workers with specific benefits. These include covering reasonable medical, hospital and remedial care expenses for work related injuries, along with reimbursing mileage for medical appointments at the state employee rate of 70 cents per mile as of January 1, 2025.

The law also gives injured workers the right to select their own healthcare providers. Employers must respect these choices or risk civil penalties reaching $2,500.

It's important to note that the requirement to develop temporary alternative work opportunities applies to employers with five or more full-time employees. However, the obligation to provide medical benefits and mileage reimbursement under Section 281-A:23 applies to all employers, regardless of the number of employees.

New Hampshire minimum wage and its implications for mileage reimbursement

In New Hampshire, the minimum wage is tied directly to the federal rate, currently $7.25 per hour, as detailed under RSA 279. Employers must adhere to the following requirements:​

• Tipped Employees: Employers may pay tipped employees an hourly wage as low as 45% of the regular minimum wage, which amounts to $3.27 per hour. ​
• Tip Credit: If the combination of the tipped wage and actual tips does not meet the full minimum wage of $7.25 per hour, employers are obligated to make up the difference.

While New Hampshire does not specifically require employers to reimburse workers for business travel expenses, federal regulations come into play. Under the Fair Labor Standards Act, when unreimbursed business costs like mileage push an employee's earnings below minimum wage, employers must cover the difference to remain legally compliant.

Providing fair compensation and properly reimbursing work related expenses serves dual purposes. These practices ensure legal compliance while creating a workplace environment where employees feel properly valued for their contributions.

Whether you're reimbursing at the full New Hampshire state rate of $0.70 per mile or creating your own policy, helping employees reduce travel costs benefits everyone. Smart travel practices can significantly lower your reimbursement expenses while helping employees spend less time on the road. Here are practical strategies to encourage cost-effective business travel across New Hampshire.

Plan trips efficiently

Encourage employees to combine multiple client visits or work tasks into single trips whenever possible. This approach reduces total mileage and allows employees to accomplish more in less time. Provide access to mapping tools that help optimize routes, especially important when navigating between New Hampshire's various business centers and rural areas. Consider implementing appointment scheduling software that groups nearby client visits together to minimize backtracking and unnecessary miles.

Promote fuel efficiency

Help employees understand how driving habits directly impact fuel consumption. Simple techniques like maintaining steady speeds, avoiding rapid acceleration, and reducing idling time can significantly improve gas mileage. Remind staff that proper vehicle maintenance particularly tire pressure checks and regular tune ups can improve fuel economy by up to 10%. These practices help offset New Hampshire's often higher than average fuel prices, especially in tourist areas and along interstate corridors.

Support cost saving programs

Encourage employees to take advantage of fuel discount programs available at major gas station chains throughout New Hampshire. Many supermarkets and warehouse clubs also offer fuel rewards based on shopping purchases. Consider partnering with local gas stations near your office to negotiate corporate discounts for employees traveling on company business. For employees who frequently travel to the same regions, create maps identifying the typically lower priced fuel stations along common routes.

Establish clear expense guidelines

Develop a thorough travel policy for employees that clearly outlines what qualifies for reimbursement beyond just mileage. Include guidance on meal expenses, overnight accommodations, and incidental costs. Make these guidelines easily accessible to all employees and review them during onboarding for positions involving regular travel. Implement a straightforward process for submitting expense claims promptly, ideally through digital platforms that reduce paperwork and processing time while ensuring employees receive their reimbursements quickly.

As New Hampshire businesses manage the complexities of employee reimbursements, striking the right balance between legal compliance and employee satisfaction becomes increasingly important. While private employers are not legally mandated to match the state's 70 cent per mile rate, doing so demonstrates a commitment to fair compensation that can ultimately strengthen workplace morale and retention.

The ongoing shifts in employee mileage reimbursement reflect broader economic trends, with rates steadily increasing over recent years. For business owners, staying informed about these changes is not merely about compliance. It is about creating a framework where employees feel valued when using personal resources for company business, particularly in a state where minimum wage provisions remain tied to federal standards.

For businesses seeking to streamline this process, Brex's expense management software offers a compelling solution. By automating expense reimbursement, approvals, receipt capture, and policy enforcement, Brex eliminates the administrative burden traditionally associated with tracking employee expenses. The platform's integrated approach combines corporate cards, expenses, reimbursement, bill pay, travel, and startup banking into a single place, allowing companies to focus on growth rather than paperwork. Sign up for Brex today to transform how your business handles reimbursements and expenses.