Alaska mileage reimbursement rates & calculator

When you're running a business in Alaska, the little things, like mileage reimbursement, can make a big difference. State employees have it spelt out for them: they get $0.67 per mile as of January 1, 2024, under Policy AAM 60.140

As a private employer, it's not a legal requirement, but offering fair mileage reimbursement shows your team you value their time and effort. Plus, under Section 8 AAC 45.084 of Alaska's Workers' Compensation Act, covering travel costs for medical appointments isn't just fair — it's a legal mandate. 

Furthermore, offering mileage reimbursement will ensure you avoid accidentally violating Alaska's Minimum Wage Law. 

Alaska business mileage reimbursement rates 

For 2024, the mileage reimbursement rate for using personal vehicles for business chores in Alaska is $0.670 per mile. The IRS established this rate, which is mandatory for state employees under Policy AAM 60.140. 

As a private employer, mileage reimbursement is optional for you unless it's for injured employees under the Workers' Compensation Act.

Here's a snapshot of year-on-year rate analysis for mileage reimbursement by the IRS, which Alaska closely follows. 

Tax Year Business rate Charitable rate Medical/ moving rate
2024 $0.67 $0.14 $0.21
2023 $0.655 $0.14 $0.22
2022
(Jul 1 to Dec 31)
$0.625 $0.14 $0.22
2022
(Jan 1 to Jun 30)
$0.585 $0.14 $0.18
2021 $0.56 $0.14 $0.16
2020 $0.575 $0.14 $0.17

Please note: You may reimburse your employees at rates above or below the IRS standard. However, any excess reimbursement over the IRS rate is subject to taxation as income.

Alaska mileage reimbursement calculator

Using the Alaska mileage reimbursement calculator is straightforward. 

  • Choose the tax year for which you want to calculate.
  • Input the miles driven to determine how much money can be received in return.
Business miles driven
Charitable miles driven
Medical / moving miles driven
Total Deduction: 
Total Miles: 

Alaska mileage reimbursement laws

When it comes to mileage reimbursement in Alaska, there are specific policies and laws that you, as a private employer, need to be aware of. For state employees, the rules are clearly laid out in Policy AAM 60.140. 

However, as a private employer, your obligations differ, especially when dealing with the Workers' Compensation Act under Section 8 AAC 45.084. 

Here's a breakdown of all such critical regulations and what they mean for you.

Mileage reimbursement for state employees under policy AAM 60.140[1]

Policy AAM 60.140 governs mileage reimbursement for Alaska's state employees. As of January 1, 2024, the reimbursement rate is set at $0.670 per mile, a rate established by the IRS. 

The policy outlines that the state will:

  • Offer mileage reimbursement only when it is in the state's best interest. 
  • Offer compensation for official duties outside of the employee's defined Duty Station.

If a state employee chooses to use their personal vehicle instead of a more economical option like a rental car, as per this policy, their reimbursement may be capped at the lower cost. 

Section 8 AAC 45.084 of the workers' compensation act for mileage reimbursement

Mileage reimbursement for injured employees is not just a courtesy in Alaska — it's a legal requirement, as stated in Section 8 AAC 45.084 of Alaska's Workers' Compensation Act. As an employer, you're mandated by this law to do the following things. 

  • Reimburse injured employees for travel to obtain necessary medical treatment.
  • Compensate for travel to the nearest capable medical facility.
  • Cover the costs for the most reasonable and efficient transportation, whether it's a personal vehicle, bus, or flight.

Please note[2]: Alaska law allows employees to choose their doctor. One change is allowed without prior approval, and further changes require your written consent. 

Alaska minimum wage law and its implications on mileage reimbursement 

Alaska's Minimum Wage Law currently sets the wage at $11.73 per hour. Even though this law doesn't require you to reimburse your employees for mileage, considering it part of your overall compensation strategy can set you apart. 

Offering mileage reimbursement can provide the following benefits.

  • Help your employees manage expenses better, especially in a state with significant distances between job sites.
  • Align your business with the spirit of the Minimum Wage Law, ensuring wages don't fall below the state minimum due to mileage non-reimbursement. 

Please note: Alaska minimum wages are expected to rise to $15 per hour by 2027, addressing the gap between current wages and the state's high cost of living.

Say goodbye to mileage tracking hassles with Ramp

Mileage reimbursement laws in Alaska aren't just some bureaucratic red tape — they're vital to fair business practices. They ensure your employees are compensated for the miles they put in, whether they're driving across town or the state. 

Moreover, proper mileage reimbursement in a state as vast as Alaska will help you create a work environment where your employees feel valued. Ramp takes the complexity out of this process. 

By automating mileage tracking, Ramp's AI-boosted expense management solution ensures every mile is accounted for and reimbursed promptly, saving you time and ensuring your team's efforts are recognized and rewarded. With Ramp handling the details, you can keep your focus where it belongs — growing your business.

Discover how Ramp automates mileage tracking and reimbursement

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Sources:

[1] Under the header, 'AAM 60.140 privately owned vehicles': https://doa.alaska.gov/dof/manuals/aam/resource/60t.pdf

[2] Under the header, ‘C. MEDICAL BENEFITS’: https://labor.alaska.gov/wc/publications/wc-brochure.pdf

The content on this page is intended for informational purposes only and may not be up-to-date with current legal standards. It should not be used as a legal, tax, or accounting guidance source. For advice specific to your state and situation, consult with a professional legal, tax, or accounting advisor.