Mileage Reimbursement Laws by State (2026)

This is not legal advice. We summarize each law in plain words and link to its text, checked in November 2026. Laws and court rulings change, and the details of your job matter. For your own case, ask your state labor department or an employment lawyer.

Federal law: only a minimum-wage floor

The Fair Labor Standards Act (FLSA) requires wages to be paid “free and clear” (29 CFR 531.35). If you must use your own car for work, and your car costs would bring your pay below the federal minimum wage or the overtime you are owed, the employer has to make up the difference. The U.S. Department of Labor says a reimbursement must reasonably match your actual costs, and that the IRS mileage rate is optional, not required (opinion letter FLSA2020-12).

Example: you work 40 hours at $8.00 an hour, for $320.00. The federal minimum wage of $7.25 an hour comes to $290.00 for those hours. So the employer can leave no more than $30.00 of your car costs unpaid that week without breaking the federal minimum. If you drive 100 work miles and your real cost is close to the IRS rate of 76 cents, that is about $76.00, so roughly $46.00 more is due. Many states have a higher minimum wage, which raises the floor.

Above the minimum wage, federal law doesn’t require reimbursement. State law, a union contract, or your employer’s policy may.

States that require reimbursement

These laws require the employer to pay for necessary work expenses, which includes using your own car for the job. None of them sets a cents-per-mile rate for private employers.

State expense reimbursement laws
State	Law	What it requires
California	Labor Code §2802	Pay all necessary expenses and losses that come directly from doing the job. You can’t waive the right (§2804). Details: California mileage reimbursement.
Illinois	820 ILCS 115/9.5 (since 2019)	Pay necessary expenses within the scope of the job that the employer authorized or required. You submit them with documentation within 30 days, unless the written policy allows longer. A policy can set limits, but not zero or token pay.
Iowa	Iowa Code §91A.3(6)	Pay expenses the employer authorized, in advance or within 30 days after you submit the claim. If the employer refuses, it must explain why in writing within the same 30 days.
Montana	Mont. Code Ann. §39-2-701	Pay back what you necessarily spend or lose in doing the job. Losses from the ordinary risks of the business are not covered.
New Hampshire	RSA 275:57	Pay expenses you incur at the employer’s request within 30 days after you show proof of payment, unless they are normally yours as a condition of the job or already covered by wages or an advance.
North Dakota	N.D. Cent. Code §34-02-01	Pay back what you necessarily spend or lose in doing the job. Tools of a trade that you also use outside work are excluded.
South Dakota	S.D. Codified Laws §60-2-1	Pay back what you necessarily spend or lose as a direct result of doing the job.
District of Columbia	7 DCMR §909.1	Pay the cost of travel expenses you incur doing the employer’s business.
Massachusetts	454 CMR 27.04(4)	Covers travel only: if you must drive between work sites during the day, or report to a different location than usual, the employer pays for the time and reimburses the transportation costs. Ordinary home-to-work travel is not covered.

Checked November 2026. Links to each law are in the sources below.

States that enforce a promised reimbursement

Some states don’t require reimbursement, but treat a reimbursement your employer agreed to pay like a wage. In New York, Labor Law §198-c makes it a crime for an employer to fail to pay agreed “benefits or wage supplements,” which include reimbursement for expenses, within 30 days after they are due. It doesn’t apply to executive, administrative, or professional employees who earn more than $1,300 a week.

So in many states, the employer’s written policy is what you can enforce. Keep a copy of it, and of every mileage report you turn in.

Every other state

We found no general expense-reimbursement statute in the other states as of November 2026. Not finding one is not legal proof that none exists: wage rules, court decisions, and city laws can apply. If your state isn’t listed above, check:

Your employer’s written expense policy, handbook, or job offer.
Any union contract that covers you.
The federal minimum wage floor above, and your state’s minimum wage.
Your state labor department’s page on wage payment.

Searches like “Texas mileage reimbursement” or “Virginia mileage reimbursement” often come from state employees; their rates are in the next section.

State mileage rates for state employees

Each state government sets the mileage rate it pays its own employees for work travel. Some use the federal (IRS) rate, as California does; others may set their own. These rates apply to state employees, not to private employers.

California: CalHR pays state employees the federal standard mileage rate: 76 cents a mile from July 1, 2026 (72.5 cents January–June 2026).
Other states: look for your state’s travel rules on the website of its comptroller, finance department, or human resources office.

Federal employees use the GSA mileage rate. Private employers that pay a rate per mile usually use the IRS mileage rate, because it is the most they can pay tax-free. The tax side is in employee mileage reimbursement rules.

If your employer won’t pay

Read your employer’s written expense policy, and follow its deadlines.
Submit your miles in writing, with a mileage log or a mileage reimbursement form: date, places, purpose, and miles of each trip. Keep a copy.
Work out the amount with the mileage reimbursement calculator.
If the claim is refused and your state has a law above, contact your state labor department about a wage claim, or an employment lawyer. Time limits apply.

FAQ

Is there a federal law requiring mileage reimbursement?

Not as such. The Fair Labor Standards Act only requires that unpaid work costs, including car costs, don’t bring your pay below the minimum wage or the overtime you are owed.

Which states require mileage reimbursement?

California, Illinois, Montana, North Dakota, South Dakota, and the District of Columbia have laws or rules that require employers to cover necessary work expenses, which includes driving for the job. Iowa and New Hampshire require employers to pay back expenses they authorized or asked for. Massachusetts requires reimbursement for travel between work sites. The exact conditions differ; see the table above.

Does my state set a mileage rate for private employers?

None of the laws above sets a cents-per-mile rate for private employers. The employer must cover your actual necessary costs, and many use the IRS rate to do it. State government rates apply to state employees.

Does Texas require mileage reimbursement?

We found no Texas law that requires private employers to reimburse mileage, as of November 2026. The federal minimum wage floor still applies, and your employer’s written policy can be enforceable. Ask the Texas Workforce Commission about your case.

Can my employer pay less than the IRS rate?

Under federal tax law, yes. In a state that requires reimbursement, the payment still has to cover your actual necessary costs. If you can show they are higher, you may be owed more.

Sources

29 CFR 531.35, wages paid “free and clear” (checked November 12, 2026): ecfr.gov
U.S. Department of Labor, Opinion letter FLSA2020-12 (vehicle expenses; the IRS rate is optional) (checked November 12, 2026): dol.gov (PDF)
U.S. Department of Labor, Minimum wage ($7.25 an hour federal minimum) (checked November 12, 2026): dol.gov
California Labor Code §2802 and §2804 (checked November 12, 2026): leginfo.legislature.ca.gov
Illinois, 820 ILCS 115/9.5 (checked November 12, 2026): ilga.gov
Iowa Code §91A.3 (Iowa Code 2026) (checked November 12, 2026): legis.iowa.gov (PDF)
Montana Code Annotated §39-2-701 (checked November 12, 2026): mca.legmt.gov
New Hampshire RSA 275:57 (checked November 12, 2026): gc.nh.gov
North Dakota Century Code §34-02-01 (checked November 12, 2026): ndlegis.gov (PDF)
South Dakota Codified Laws §60-2-1 (checked November 12, 2026): sdlegislature.gov
District of Columbia, 7 DCMR §909.1, wage-hour rules (checked November 12, 2026): does.dc.gov (PDF)
Massachusetts, 454 CMR 27.04(4), travel time and transportation expenses (checked November 12, 2026): mass.gov
New York Labor Law §198-c (checked November 12, 2026): nysenate.gov
California Department of Human Resources, 2026 updated mileage reimbursement rates (checked November 12, 2026): calhr.ca.gov