Wisconsin aligns with the mileage reimbursement rates set by the Internal Revenue Service of $0.70 per mile for personal vehicles. Wisconsin employers have the flexibility to set their own reimbursement rates, and if payments exceed the IRS standard, they become taxable income.

The following table shows the historical increases in mileage rates:

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 Wisconsin, 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.

Several regulations determine Wisconsin’s approach to employee mileage reimbursement. State employees are subject to reimbursement at the rates set by the IRS. While private employers are typically not required to reimburse employees for business-related expenses, there are situations where reimbursement is legally required.

State employee reimbursement under Statute 20.916

Wisconsin Statute 20.916 establishes mileage reimbursement requirements for state employees. This statute mandates reimbursement for travel expenses during official duties and provides for additional compensation when personal vehicles face unusual wear conditions. The law establishes that reimbursement rates are set by the Division of Personnel Management.

Wisconsin workers’ compensation provisions

Wisconsin law specifically requires employers to reimburse injured workers who travel for medical treatment or vocational rehabilitation. This mandate applies to all Wisconsin employers regardless of size or sector and requires reimbursement at the same rate established for state employees.

Mileage reimbursement considerations for minimum wage requirements

Wisconsin Statute 104.035 establishes the state's minimum wage at $7.25 per hour, which can be important to consider for an organization with employees using a personal vehicle for business purposes.

When accounting for reimbursed mileage — or lack thereof — expenses cannot reduce compensation below minimum wage, and substantial unreimbursed business travel could potentially violate these provisions. Employers must track both wages and business expenses to ensure compliance, and documentation of reimbursements helps demonstrate good-faith compliance efforts.

Failing to navigate these requirements appropriately can expose Wisconsin businesses to complaints and potential financial penalties.

Wisconsin’s mileage reimbursement laws make it important to consider creating clear policies. These best practices can help private employers in Wisconsin craft an effective policy.

Address seasonal driving considerations

Wisconsin’s challenging winter conditions and rural road networks can affect driving conditions and mileage accumulation. Your policy should consider seasonal adjustments that acknowledge winter driving challenges and address rural versus urban driving differences across Wisconsin’s diverse geography. Providing clear guidance for weather-related detours and alternative routes can help employees stay within policy.

Establish a clear policy

Wisconsin businesses can benefit from having a well-defined, detailed mileage reimbursement policy rather than handling reimbursements on a case-by-case basis. Your written policy should establish eligibility criteria, specifying exactly which driving activities qualify for reimbursement in Wisconsin’s business context. Within this policy, your business can also establish when reimbursements will be paid and what the approval process entails.

Understand tax implications for reimbursement

Reimbursements at or below the IRS standard rate of $0.70 per mile in 2025 are generally considered non-taxable business expenses, benefiting both employers and employees. Payments exceeding this threshold, however, must be reported as taxable income on Wisconsin employees' W-2 forms, creating additional tax obligations and potentially affecting employees' overall tax situations.

Establish clear documentation standards

Establishing documentation practices is important to remain in compliance. Helpful information includes the date of travel, business purpose of the trip, starting location, destination, and ending location. Expense management software can streamline this process, offering businesses a way to standardize requirements and maintain documentation.

Communicate policy details effectively

Clear communication ensures compliance and employee satisfaction. Written policies that explain Wisconsin-specific reimbursement approaches can help prevent misunderstandings. Regular policy reviews can also ensure your approach remains relevant to local market conditions.

The state grants significant flexibility to private employers and understanding Wisconsin-specific considerations — from the state's minimum wage requirements to its mandatory workers' compensation travel reimbursement—helps create policies that protect both your business and your employees.

Brex's expense management platform transforms Wisconsin mileage reimbursement through automation and customizable expense policies. Brex eliminates the burden of manual expense tracking and streamlines the entire reimbursement workflow. By integrating corporate cards, expense tracking, reimbursement processing, and accounting automation into a unified platform, Brex enables Wisconsin businesses to manage travel expenses efficiently and accurately. Sign up for Brex today.