How Much Does the Government Pay for Mileage?
The government reimburses employees for using their own vehicles while conducting government business. This is intended to defray not only the cost of fuel but also help to pay for wear and tear on the vehicle accrued from miles on the road. Although the federal rate is standardized, state reimbursement rates may vary.
Federal Reimbursement Rates
The General Services Administration sets mileage reimbursement for U.S. government agencies. As of 2013, the standard reimbursement rate for automobiles was 56.5 cents per mile. If a company vehicle is available and an employee still opts to use his own vehicle, the reimbursement rate is 24 cents per mile. The Internal Revenue Service also offers a 14 cents per mile reimbursement rate for miles driven in service of charities. In addition to standard automobiles, the federal government also reimburses mileage for other privately owned vehicles. For example, motorcycle use is reimbursed at a rate of 53.5 cents per mile, while private airplane use is reimbursed at a rate of $1.33 per mile.
State Reimbursement Rates
State government agencies also reimburse employees for mileage on privately owned vehicles, but rates vary. For example, California used the standard GSA reimbursement rate of 56.5 cents per mile as of 2013. On the other hand, Kentucky reimbursed employees at a rate of 47 cents per mile in 2013, while Kansas reimbursed employees at a rate of 55 cents per hour for standard automobiles.
- U.S. General Services Administration: Privately Owned Vehicle (POV) Mileage Reimbursement Rates
- Internal Revenue Service: Standard Mileage Rates for 2013
- California Department of Transportation: Private Vehicle Use
- Kentucky Finance and Administration Cabinet: State Employee Travel
- Kansas Office of Financial Management: Employee Travel Expense Reimbursement Handbook for Fiscal Year 2013