Each year, the IRS reviews and typically adjusts the standard mileage rate used by many businesses as a guide in determining mileage reimbursement for employee business-related travel. The 2025 business mileage rate is 70 cents per mile.
Employers may elect to use the standard mileage rates as released by the IRS, or they may choose to use a different rate. If you choose to use a different rate, consult with a tax professional about any implications.
It is important for HR professionals to keep in mind reimbursing for mileage is optional federally and, in most states, including NC and SC. This is different than reimbursing for work time spent traveling by a non-exempt employee. Travel time is defined by the Fair Labor Standards Act (FLSA).
Check out Catapult’s travel time resources below: