For 2025, Washington agencies reimburse employees at $0.70 per mile when using personal vehicles for official functions. This figure aligns with the current IRS standard mileage rate.

Below are the current Washington mileage reimbursement rates for 2025, along with 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 Washington, 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.

Washington's RCW 43.03.060 requires state agencies to reimburse employees who use personal vehicles while conducting official state business.

Although private businesses don’t fall under this requirement, adopting similar reimbursement policies may help prevent violating Washington's Minimum Wage Act. These compensation standards must be maintained even when employees aren’t reimbursed for business-related vehicle expenses.

Washington mileage reimbursement code RCW 43.03.060 for state employees

In Washington, state employees using personal vehicles for official business must be reimbursed at the rate set by the state. RCW 43.03.060 specifies that mileage reimbursement must cover necessary travel, including all travel that's required to perform official duties.

The law stipulates that state employees can only use a personal vehicle when it is more advantageous or economical than state-owned transportation.

The Washington Minimum Wage Act (WMWA)

While WMWA primarily addresses wage standards, it can affect mileage reimbursement and applies to private employers in certain situations.

For instance, the act specifies that wages, including effective compensation for mileage for business travel, must meet or exceed the local minimum wage rates, which, as of 2025, stand at $16.66 per hour in most cities in Washington.

As a private employer in Washington, you are required to provide mileage reimbursement when unreimbursed expenses would drop the wages of your employees below the state minimum. Washington's minimum wage varies slightly in cities like Seattle, SeaTac, and Tukwila, requiring additional vigilance from employers operating in these locations.

As a private employer in Washington, your business isn’t required to provide mileage reimbursement to your employees. Nonetheless, it can be advantageous to create an employee mileage reimbursement policy for both compliance and retention reasons. These tips can help your business implement such a policy.

Establish a clear policy

Create a comprehensive mileage reimbursement policy that explicitly outlines eligibility criteria, submission deadlines, and documentation requirements. Your policy should define what constitutes reimbursable travel versus personal commuting, specify the current reimbursement rate, and establish clear approval workflows.

Integrate automated reporting tools

Implement digital solutions that allow employees to track business mileage automatically through expense management software. These tools can significantly reduce administrative burden by generating compliant reports and integrating directly with your accounting systems. Automated solutions minimize errors associated with manual calculations and provide audit-ready documentation for tax purposes.

Maintain thorough documentation

Require employees to record essential information for each business trip, including date, starting point, destination, purpose, and exact mileage. Consider implementing standardized forms or digital templates to ensure all necessary details are captured consistently.

Stay current with rate changes

Regularly review and adjust your reimbursement rates to reflect the latest IRS and Washington state guidelines. The mileage reimbursement rate typically changes annually, with occasional mid-year adjustments when fuel prices fluctuate significantly. Designate a specific team member to monitor these updates or integrate software into your workflow that can automate this process.

Consider alternative compensation models

For employees who frequently drive for business purposes, evaluate whether a company vehicle program or fixed travel allowance might be more cost-effective than per-mile reimbursement. Compare the total expense of different approaches while ensuring they meet Washington's minimum wage compliance requirements.

Navigating Washington's reimbursement laws doesn't have to be complicated. While government entities follow strict protocols under RCW 43.03.060, private companies can craft their own approaches as long as they keep wages above the state’s minimum wage requirements.

With Brex, Washington businesses can automate mileage reimbursement, streamlining a complicated process necessary for compliance and prone to manual errors. Beyond meeting legal requirements, thoughtful policies strengthen workforce loyalty and simplify financial operations.

Brex’s expense management automation software allows businesses to build expense policies into the platform, eliminating administrative burdens. Brex’s platform also maintains thorough documentation of reimbursements and other expenses, allowing your business to monitor costs and quickly generate complete documentation for compliance purposes. With seamless integration into existing accounting systems, Brex can simplify tax preparation and financial planning. Sign up for Brex today.