In 2025, Oregon state employees receive mileage reimbursement at $0.70 per mile—a rate established jointly by the IRS and the U.S. General Services Administration. Private employers, while not bound by these regulations, can opt to follow this IRS standard to ensure fair compensation for employees' work-related travel.

The following analysis examines how Oregon has historically aligned with IRS standard mileage rates 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 Oregon, 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.

Oregon employers need to understand the state's mileage reimbursement rules. There are specific policies for state employees and important provisions affecting private-sector employers.

Key regulations include the Statewide Fleet Management Policy 107-011-040 and the Workers' Compensation Act. Let's explore these regulations and what they mean for employers.

Oregon state employees’ mileage reimbursement policies

State agencies in Oregon must reimburse employees for mileage under certain conditions outlined in the Statewide Fleet Management Policy 107-011-040.

Getting approval beforehand is essential. State employees need agency permission before using their personal vehicles for work. Agencies typically allow personal vehicle use in two situations: when state vehicles aren't available, or when using a personal vehicle makes more financial sense based on the trip's distance, how long it will take, or the route.

State employees currently receive $0.70 per mile as the standard reimbursement. However, this rate may be reduced if state vehicles are available but employees choose to use their personal vehicles with their supervisor's approval.

Oregon’s workers' compensation act for mileage reimbursement for injured employees

For private employers operating in Oregon, the Workers' Compensation Act imposes mandatory reimbursement obligations that extend beyond optional business practices. The law explicitly requires businesses to cover specific expenses incurred by employees with work-related injuries.

When employees sustain job-related injuries, employers must provide reimbursement for travel expenses associated with medical treatment, including mileage for trips to healthcare providers and pharmacies. The law also mandates compensation for parking fees and tolls paid during these medical visits. These financial responsibilities represent non-negotiable legal requirements for all Oregon businesses.

Oregon minimum wage act and its implications for mileage reimbursement

The Oregon Wage Act establishes minimum wage standards to ensure fair compensation throughout the state. Though the legislation contains no explicit mileage reimbursement provision, it firmly requires that employee earnings remain above the state minimum wage threshold.

Employers must provide mileage reimbursement when failing to do so would reduce an employee's effective earnings below the minimum wage requirement. Non-compliance carries substantial financial penalties. Oregon's minimum wage varies by region, with different rates applying to different areas of the state.

The state typically implements annual minimum wage adjustments each July, with potential changes expected in July 2025. The table below illustrates the current regional minimum wage rates across Oregon.

Oregon's diverse landscape with rural, mountainous, and remote areas poses distinct travel challenges for businesses and employees. Employers need to consider unique geographic conditions when creating employee mileage reimbursement policies, ensuring fairness and safety for employees working in more challenging travel environments.

Reimbursing for increased vehicle maintenance costs

Employees traveling through remote or mountainous regions frequently face higher vehicle maintenance expenses, such as tire replacements, suspension wear, and increased fuel consumption. Many employers find it beneficial to adjust mileage reimbursement rates specifically for workers who regularly navigate these demanding routes. Some organizations implement periodic vehicle maintenance stipends as an alternative to higher mileage rates. This approach acknowledges the additional wear and tear on personal vehicles and prevents employees from absorbing business-related maintenance costs.

Addressing seasonal weather challenges

A thoughtful reimbursement policy should outline how seasonal weather issues specific to Oregon, like snow and ice in mountain passes or flooding in rural counties, affect travel expectations. Employers should develop clear guidelines for reimbursing emergency-related expenses when employees encounter severe weather conditions during business travel. These guidelines typically cover costs for overnight accommodations, towing services, and roadside assistance that wouldn't be necessary under normal conditions. Providing this clarity in advance helps both employers and employees navigate unexpected situations without confusion about financial responsibilities.

Safety and emergency travel expenses

Effective reimbursement policies specify whether costs for essential safety equipment like snow chains, emergency kits, or satellite phones for areas without reliable cell service are covered. Employers should communicate exactly how employees need to document and submit these specialized expenses for reimbursement. Clear guidance around safety equipment expenses demonstrates an employer's commitment to worker wellbeing while traveling in challenging regions. This approach helps ensure employees won't hesitate to obtain necessary safety items when traveling through Oregon's more remote areas.

Guidelines for overnight or extended travel

Businesses should establish transparent rules regarding expense reimbursement for overnight lodging, meals, and incidental expenses when employees must stay away from home due to long-distance or hazardous travel conditions. These expense policies should address per diem rates for different regions of Oregon, recognizing that costs vary significantly between urban and remote areas. Employers benefit from providing detailed documentation requirements for these additional travel-related reimbursements to maintain compliance and transparency. Clear overnight travel guidelines help prevent misunderstandings and ensure employees feel supported when business needs require extended stays in remote locations.

Oregon's mileage reimbursement framework operates through distinct systems for public and private employers. State employees follow the structured Statewide Fleet Management Policy with its $0.70 per mile rate and prior authorization requirements. Private employers must address both Workers' Compensation obligations for injured employees and ensure minimum wage compliance when business travel affects employee earnings.

Understanding these regulations provides Oregon businesses with more than regulatory clarity. Proper implementation of mileage reimbursement policies fulfills legal obligations, supports employee retention, reduces financial risk from potential penalties, and ensures fair compensation practices. These elements form critical components of sound financial management for businesses of all sizes operating in the state.

For companies seeking to simplify this complex aspect of expense management, Brex's expense management software offers an effective solution. By automating the entire reimbursement workflow from expense submission and receipt capture to approval processes and policy enforcement, Brex eliminates administrative burden and reduces errors. The platform integrates expense management with corporate cards, reimbursements, bill payment, travel booking, and startup banking on a single platform, creating a unified software that streamlines financial operations.

Sign up for Brex today to transform your Oregon business's approach to mileage reimbursement and expense management.