Mississippi mileage reimbursement rates & calculator

Mileage reimbursement in Mississippi is the act of fairly reimbursing your employees for mileage when they use personal vehicles for work. The statute 25-3-41 dictates that state employees receive mandatory mileage reimbursement at IRS rates set by the federal government.

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While not mandated for private employers, aligning with federal standards under Section 25-3-41 offers multiple benefits.

• Ensure compliance with Mississippi's Workers' Compensation Act.
• Build your team's faith in you, leading to talent retention and a profitable business.

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It's also worth noting that offering fair compensation for mileage will prepare your business for the future – it will align your business to the new Mississippi Minimum Wage Law, which will be implemented in 2025, as per Senate Bill 2172.

Mississippi business mileage reimbursement rates 

In Mississippi, the current mileage reimbursement rate for state employees is set at $0.67 per mile, as determined by the federal government. 

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While following the IRS mileage rates is not mandatory for you as a private employer, it can indeed serve as a guideline to ensure fair compensation. 

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Here’s an overview of the year-on-year mileage reimbursement rate increase in Mississippi.

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.

Mississippi mileage reimbursement calculator

Using the Mississippi mileage reimbursement calculator is simple. 

• Choose the tax year for which you want to calculate.
• Input the miles driven to determine how much money can be received in return.

Mississippi mileage reimbursement laws

Mississippi's framework for mileage reimbursement is detailed in Section 25-3-41 of the Mississippi Code of 1972, which sets the reimbursement rates for state employees. While this is not a legal guideline for you as a private employer, other regulations, including the Workers' Compensation Act, mandates you to offer mileage reimbursement. 

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Have a look at the detailed breakdown of each of these laws and how they affect mileage reimbursement for employees.

Section 25-3-41 for mileage reimbursement guidelines for state employees 

Under Section 25-3-41 of the Mississippi Code of 1972, state employees traveling on official state business in their private automobiles are reimbursed at the same rate as federal employees for using private automobiles on official federal business. 

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As of 2024, these are the detailed rates:

• $0.67 per mile when no government-owned vehicle is available.
• $0.21 per mile if a government-owned vehicle is available but private vehicles are still used.

Workers' comp act and mileage reimbursement for injured employees

As per the Workers' Compensation Law in Mississippi, no matter the sector (private or public), as an employer, you are bound by the law to offer mileage reimbursement if your employees sustain injuries at work. 

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This law, enacted in 1948 and overseen by the Workers' Compensation Commission, mandates that you cover mileage costs your employees pay when traveling to and fro medical facilities in their own vehicles. 

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It's also worthwhile to make your employees aware that the benefits under Mississippi's Workers' Comp Act are barred if not claimed within two years of the injury date.

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Please note: You can be exempted from this act if you have less than five employees. It also excludes agricultural laborers and certain non-profit workers.

Mississippi’s minimum wage and senate bill 2172 for mileage reimbursement 

As of 2024, Mississippi does not have any Minimum Wage Law. It adheres to the federal minimum wage rate of $7.25 per hour. 

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While the federal law does not directly impact mileage reimbursement, it influences the process big time. That's because if the minimum wages of your employees drop below the federal minimum in Mississippi due to mileage non-reimbursement, you are legally mandated to offer reimbursement to pull the wages to or above $7.25 per hour. 

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Here's the latest scoop about minimum wages. 

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As per the announcements in Senate Bill 2172, Mississippi is set to introduce a new Minimum Wage Law. As per the new policy, you will follow the state minimum wage – listed below – instead of the Federal Minimum Wage. 

• $12.00 per hour from January 1, 2025
• $15.00 per hour from January 1, 2027

Automate mileage tracking and reimbursements with Ramp

Mileage reimbursement laws in Mississippi are designed to ensure your employees are fairly compensated for the mileage cost they incur as part of their job duties. 

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You can reap significant benefits by adhering to the guidelines under Section 25-3-41 – even though you're not legally obligated to do so as a private employer – and the Workers' Compensation Act. 

• Protect your business from penalties and disputes.
• Enhance employee satisfaction through fair reimbursement.
• Promote talent retention, as employees who feel you value their efforts are less likely to look for other jobs.

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Ramp can significantly streamline this process of mileage reimbursement for you. By automating mileage tracking, Ramp's expense tracking software eliminates the need for manual logs and calculations, ensuring accuracy and efficiency. 

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It simplifies the reimbursement process, saving time and reducing errors, which benefits you and your employees by ensuring every mile is accounted for and appropriately compensated.