For 2025, Virginia's business mileage reimbursement rate is $0.70 per mile, adhering to the IRS standard.

Below are the current Virginia mileage reimbursement rates that align with IRS standards for 2025, accompanied by an analysis showing the year-over-year rate changes.

Note: Private 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 Virginia, 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.

Virginia's private sector does not have a mandated mileage reimbursement law. However, there is a mandatory Minimum Wage Code §40.1-28.10, which applies to all private employers in the state.

While private employers operate outside any statutory reimbursement requirement, adopting fair reimbursement practices may help prevent inadvertent violations of Virginia's minimum wage requirements. This regulation helps ensure that employees' wages do not fall below the current state minimum of $12.41 per hour for 2025.

Virginia Code 30-19.15 for public sector mileage reimbursement

Virginia Code 30-19.15 specifies that public sector workers in Virginia must be reimbursed for all mileage incurred during official duties.

This code ensures that employees traveling for work are compensated for actual travel expenses, including trips to conferences,training sessions, and other work-related events outside the regular workplace.

However, as per this mileage law, not everything falls under the employer's scope of reimbursement. According to Virginia Code 2.2-2823, tolls and parking fees are excluded.

Code 40.1-28.10 for minimum wages in Virginia

While private-sector employers are not required to reimburse for mileage, they must ensure that employees’ wages do not fall below the current state minimum of $12.41 per hour for 2025.

Per Virginia’s Minimum Wage Code, the state minimum ensures workers don’t end up paying to work. This provision has implications for mileage reimbursement practices, as employers must verify that an employee's total compensation remains at or above the minimum wage threshold even when factoring in unreimbursed travel expenses.

Mileage reimbursement for worker's compensation

Virginia's Worker's Compensation law (Title 65.2) outlines specific mileage reimbursement standards for work-related injuries. According to the Virginia Workers' Compensation Commission, employers must provide mileage reimbursement when workers travel to receive medical examinations or treatments for work-related injuries. As of 2025, this reimbursement must follow the standard state mileage rate of $0.70 per mile.

Establish written policy

Creating a clear, written employee mileage reimbursement policy is essential for efficient mileage tracking. This policy should outline eligible trip types, submission deadlines, and required documentation, reducing confusion and streamlining the approval process. Employees who understand exactly what can be reimbursed and how to submit claims will help your business maintain accurate records and control costs.

Distinguish commuting from business miles

Distinguishing between commuting miles and business miles is important for accurate reimbursement. Provide employees with clear guidance on when tracking should begin and end, emphasizing that normal commutes to a primary workplace typically aren't reimbursable. This distinction helps prevent compliance issues and ensures fair application of your reimbursement policy while avoiding unnecessary expenses for routine travel.

Conduct regular audits

Regular auditing of your mileage reimbursement program helps identify potential minimum wage compliance issues. Conducting quarterly reviews of employee reimbursements and their working hours can reveal cases where unreimbursed expenses might push an employee's effective wage below the minimum threshold.

Separate tracking for Workers' Compensation travel

Employers should maintain separate tracking systems for regular business mileage and Workers' Compensation-related travel. Creating specialized submission forms that clearly differentiate these categories helps ensure proper accounting and compliance with relevant regulations.

Virginia's mileage reimbursement laws have implications for both public and private employers. While state agencies must adhere to precise statutory requirements under Code 30-19.15, private businesses have discretion in establishing their own reimbursement policies.

For businesses operating in Virginia, implementing mileage reimbursement practices can help comply with state law, including minimum wage requirements and Workers’ Compensation regulations. Employee mileage reimbursement can also be one way to show employees they’re valued and retain talent.

With Brex’s expense management software, complying with Virginia’s mileage reimbursement laws can become seamless and automated. Brex’s platform allows businesses to set expense policies within the software, streamlining review and approval processes. Brex integrates into existing accounting software, reducing manual errors and simplifying tax preparation. Sign up for Brex today to automate your mileage reimbursement policy.