The business mileage reimbursement rate in New York for 2025 stands at $0.70 per mile, matching the standard rate established by the IRS.

For reference, the following table presents the current IRS mileage reimbursement rates along with an analysis showing how these rates have changed compared to the previous year.

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 York, 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.

When New York state employees travel for official duties, they get reimbursed for mileage following IRS and U.S. General Services Administration guidelines.

To make reimbursement easier and stay tax compliant, organizations should use two separate expense lines. The first line pays employees the standard IRS rate of $0.70 per mile, which isn't taxable. The second line covers any extra mileage compensation above the IRS rate, which employees will need to pay taxes on.

New York minimum wage act for mileage reimbursement

New York Labor Law Section 652 does not specifically require private employers to reimburse mileage expenses. However, total employee compensation, when accounting for unreimbursed mileage costs, must remain above the hourly minimum wage of $16.50, which applies to most regions across New York.

Employers should note that minimum wage rates in New York vary by location, as illustrated in the accompanying table.

Businesses operating in New York City face unique challenges and regulations that can directly affect employee mileage reimbursement policies. Due to higher costs, dense traffic, tolls, and public transportation alternatives, NYC employers should consider specific factors when designing their mileage reimbursement guidelines:

Addressing increased costs due to traffic and tolls

Employees driving for work in NYC often face significant toll expenses, especially when crossing bridges or tunnels, with costs sometimes exceeding $16 for a single crossing. Clearly outline whether your mileage reimbursement policy covers tolls, parking, congestion pricing (once implemented), and similar travel-related expenses that can quickly add up in the city. Consider implementing a separate expense category specifically for NYC tolls and congestion charges to track these costs accurately and ensure employees aren't bearing these substantial expenses themselves.

Public transportation vs. personal vehicle use

Evaluate whether mileage reimbursement or public transit stipends are more cost-effective and efficient for employees based in NYC, as taking the subway might save both time and money compared to driving. Establish clear guidelines on when personal vehicle use is justified, given the extensive availability of public transportation options throughout the five boroughs. Some companies find that offering employees MetroCards or OMNY reimbursements instead of mileage creates significant savings while still ensuring employees can get where they need to go efficiently.

Handling parking expenses and challenges

Parking is costly and limited in NYC, with hourly rates in Manhattan often exceeding $30 and monthly garage passes running $500 or more. Clarify how your expense policy covers parking fees, valet charges, or fines incurred during work-related travel to prevent disputes over these substantial expenses. Setting reasonable maximums for parking reimbursements based on NYC neighborhood rates can help control costs while still ensuring employees aren't unfairly burdened when driving is necessary for work.

Impact of NYC wage and hour laws on mileage policies

NYC's higher minimum wage ($16.50 per hour in 2025) directly impacts your mileage reimbursement obligations, as unreimbursed business expenses that effectively drop wages below this threshold could create legal liability. Regular audits of employee travel expenses compared to their wages can help identify potential compliance issues before they become problems. Remember that NYC's Fair Workweek and Paid Safe and Sick Leave laws also create additional employment obligations that may intersect with how travel time and expenses are handled for hourly workers.

Knowing how New York handles mileage reimbursement helps employers follow the rules while being fair to their workers. Private companies can create their own reimbursement programs, but they still need to make sure employees earn at least minimum wage after accounting for expenses, which varies by region across the state.

If you want to set up a good mileage reimbursement process, you'll need clear policies and accurate records. When your guidelines are transparent, it makes paperwork easier and shows employees you value them, which helps keep good workers around longer.

Brex's expense management software can make all of this much simpler. Brex can automatically handle expense reimbursements, approvals, and receipt collection while enforcing your spending rules. It brings everything together in one place: corporate cards, expenses, reimbursements, bill payments, travel booking, and startup banking. This saves you administrative time and gives you better visibility into your finances. Sign up for Brex today to improve how your company handles mileage and other expense reimbursements.