Mileage reimbursement helps cover the cost when employees use their personal vehicles for work-related travel. While South Carolina doesn’t generally require private employers to reimburse mileage, many businesses choose to do so to support employees and set clear expectations around business travel.

Offering fair mileage reimbursement can help you:

• Stay aligned with South Carolina wage requirements when work-related expenses are involved
• Support employee morale by covering legitimate travel costs

Later in this guide, we’ll also cover situations—such as workers’ compensation cases—where mileage reimbursement may be required under South Carolina law.

South Carolina business mileage reimbursement rates

For 2026, South Carolina has set the standard business mileage reimbursement rate at $0.725 per mile. This rate applies to state employees and is in alignment with IRS guidelines. While it serves as a benchmark, remember that as a private employer, you have the flexibility to set your own rates.

Here's a tabulated snapshot of the yearly IRS mileage reimbursement rates.

South Carolina mileage reimbursement laws

Understanding mileage reimbursement in South Carolina is key to managing your responsibilities effectively as an employer. While state employees have a set rate according to the IRS, as a private employer, you're not bound to these rates unless it's for workers' compensation claims.

Let's walk you through the specifics of all such critical mileage reimbursement regulations in South Carolina.

General appropriations act for mileage reimbursement for state employees

Under the General Appropriations Act, South Carolina state employees are reimbursed for mileage at the standard IRS rate of $0.725 per mile.

It's important to note that if employees have the option to use a motor pool vehicle and choose to use their personal vehicle instead, the reimbursement rate drops to $0.685 per mile. This measure encourages the use of state-provided vehicles.

SC's workers' compensation law for mileage reimbursement for injured employees

South Carolina's Workers' Compensation Law is not optional – even as a private employer, you are mandated by this law to offer reimbursement to employees who sustain injuries at work.

As per this law, you must offer mileage reimbursement to injured employees traveling to and from medical treatments and pharmacies. This is only applicable if the travel distance is more than:

• Five miles for medical appointments
• Ten miles for pharmacy visits         

South Carolina reimbursement laws vs federal rules

Since South Carolina follows the Federal Minimum Wage of $7.25 per hour without setting its own rate, it's easy to mistakenly assume the same applies to mileage reimbursement laws.

In reality, while federal IRS rates apply uniformly to federal and state employees in South Carolina, you're free to establish your own mileage reimbursement policies as a private employer.

This gives you the flexibility to set rates that align with your business needs and budget and is starkly different from federal guidelines for mileage reimbursement.

Experience hassle-free and automated mileage tracking with Ramp

Keeping up with South Carolina's mileage reimbursement laws ensures that both you and your employees are clear on what to expect when it comes to travel expenses. Proper adherence helps in the following ways.

• Ensure compliance with mandatory laws such as the Workers' Compensation Law.
• Boost your team's morale by compensating them for mileage when they use their personal vehicle for work-related travel.

Ramp's AI-powered expense software automates mileage tracking and reporting, reducing potential errors and disputes over travel claims. It simplifies the entire process, from logging miles to processing reimbursements, ensuring your employees are paid accurately and promptly.