North Dakota has adopted the 2025 IRS standard mileage rate of $0.70 per mile for state employees traveling within 300 miles of state borders. The state implements a tiered approach, reducing the rate to $0.18 per mile for travel exceeding this radius—a policy designed to control expenses for extended travel.

The following table outlines the current IRS reimbursement rates North Dakota follows, with comparative data showing year-over-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 North Dakota, 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.

North Dakota's mileage reimbursement rules come from several connected labor codes. Code 54-06-09 sets the main policies for when state employees use their own cars for work. Other important rules include Code 65-05-28, which covers compensation details, and Code 34-06-22, which deals with minimum wage requirements.

The explanation of these regulations below gives employers a helpful guide. Following these standards helps make sure employees get properly paid for work travel while also protecting your business from potential problems under North Dakota's Workers' Compensation Act

Code 54-06-09 for state employees' mileage reimbursement

Code 54-06-09 has important rules for anyone managing state employees. The law requires you to reimburse state workers at the official state rate when they use their personal cars for work-related travel.

There are specific conditions for this reimbursement. You must pay the standard state rate for all miles traveled within North Dakota and areas just outside it. This payment only covers the miles driven, not other expenses like car repairs, gas, or traffic costs.

The policy works differently for long trips. When state employees travel more than 300 miles outside North Dakota's borders, the reimbursement drops to $0.18 per mile, which is much less than the regular rate for in-state travel.

Codes 92-01-02-12 and 65-05-28 of the workers' comp act for mileage reimbursement

Code 92-01-02-12 of the Workers' Compensation Act protects all North Dakota employees who get hurt at work, not just state workers. This coverage applies to everyone working in any type of job across the state.

Code 65-05-28 of the Workers' Compensation Act has specific rules about paying for travel when employees need medical treatment. The law only covers travel costs to the closest place that can provide the necessary care. If employees choose to go somewhere farther away, they might have to pay the extra travel costs themselves.

The law also talks about paying for someone to travel with an injured employee. These expenses are only covered when employees can't travel alone because of their injuries. Employers can ask for medical documentation if an employee says they need someone to accompany them to treatment.

Minimum wage considerations for mileage reimbursement

Code 34-06-22 sets up the basic rules for North Dakota's Minimum Wage Law. The state follows the federal minimum wage of $7.25 per hour.

Even though minimum wage and mileage reimbursement seem like separate issues, they're actually connected when it comes to following the rules as an employer.

North Dakota employers legally need to make sure employee pay never drops below the federal minimum wage, even after counting work-related travel expenses. If not reimbursing for mileage would push someone's wages below $7.25 per hour, employers have to add extra compensation to bring it back up to the legal minimum.

In North Dakota, harsh winter weather and challenging road conditions significantly impact employees who travel for work. Employers should factor weather and road-related challenges into employee mileage reimbursement policies to keep workers safe, satisfied, and productive.

Addressing increased vehicle costs during winter months

North Dakota's severe winters cause significant additional vehicle wear and tear, including premature tire wear, more frequent oil changes, and increased battery failures due to extreme cold. Many employees face repair costs that are directly related to work travel during winter months, creating an unexpected financial burden. Smart employers recognize these seasonal challenges by temporarily increasing mileage rates during winter or offering supplemental allowances to help offset these weather-related expenses.

Guidelines for hazardous weather travel

Your mileage reimbursement policy should clearly state when employees are authorized to delay, reschedule, or cancel work travel due to dangerous road conditions like blizzards or ice storms. Employees need to know in advance whether they'll be reimbursed for additional expenses like hotel stays when weather makes returning home unsafe. Including specific weather guidelines in your policy protects both your business and your employees by preventing risky travel decisions based on financial concerns.

Covering safety equipment and emergency supplies

North Dakota's remote locations and extreme temperatures make winter emergency supplies a necessity rather than a luxury for employees who travel for work. Your reimbursement policy should specify whether costs for emergency kits, portable battery chargers, winter survival gear, or vehicle weather accessories qualify for company reimbursement. Clearly communicating your support for these safety items demonstrates your commitment to employee wellbeing while potentially reducing liability if travel emergencies occur.

Seasonal adjustments to mileage policies

Many North Dakota businesses implement winter differentials that add 10-15% to standard mileage rates during the October through April season when fuel efficiency drops and travel times increase. Reviewing your mileage policy annually before winter arrives ensures you're accounting for changing weather patterns and road conditions across different regions of the state. Regular feedback from employees who frequently travel in winter conditions helps you refine your policy to address real challenges they face on North Dakota's highways and rural roads.

North Dakota's mileage reimbursement regulations create distinct obligations through interconnected statutes. Codes 54-06-09, 65-05-28, and 34-06-22 establish clear guidelines for public sector employers while offering important compliance considerations for private businesses.

Proper implementation of these policies satisfies legal requirements while enhancing employee satisfaction through fair compensation. Finance and human resource professionals must carefully monitor compliance with tiered reimbursement structures and minimum wage standards.

Brex's expense management software offers a comprehensive solution for businesses navigating these complex regulations. The platform automates expense reimbursement processes, streamlines approval workflows, captures receipts digitally, and enforces spending policies automatically—ensuring consistent compliance with North Dakota's statutory requirements. By consolidating corporate cards, expenses, reimbursements, bill payment, corporate travel and expense management, and business banking into a unified platform, Brex eliminates fragmented processes that often lead to compliance gaps and administrative inefficiencies. Sign up for Brex today to transform your organization's approach to expense management and regulatory compliance.