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.

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.

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.

Mississippi business mileage reimbursement rates

In Mississippi, the current mileage reimbursement rate for state employees is set at $0.725 per mile, as determined by the federal government.

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.

Here’s an overview of the yearly mileage reimbursement rate changes for Mississippi.

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.

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.

As of 2026, these are the detailed rates:

• $0.725 per mile when no government-owned vehicle is available.
• $0.205 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.

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.

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.

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

Mississippi does not have a state-level minimum wage law. As a result, employers follow the federal minimum wage rate of $7.25 per hour.

While neither Mississippi nor federal law requires employers to reimburse mileage in all cases, federal wage rules still apply. Under the Fair Labor Standards Act (FLSA), unreimbursed business expenses—such as mileage—cannot reduce an employee’s effective hourly pay below the federal minimum wage. If mileage costs push wages below that threshold, employers must reimburse enough to bring pay back to at least $7.25 per hour.

Mississippi has considered legislation to establish a state minimum wage in recent years, but no such law has been enacted. As of 2026, there are no scheduled state minimum wage increases, and employers should continue to rely on federal wage requirements when evaluating mileage reimbursement practices.

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.

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.

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.

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.