For 2025, Idaho's Board of Examiners authorized government agencies to compensate state employees at $0.70 per mile when using personal vehicles for official functions.

Below are the current Idaho mileage reimbursement rates that align with IRS standards for 2025, along with past rates showing the year-over-year changes.

Note: Organizations have flexibility to reimburse employees at rates that differ from the IRS standard. However, any reimbursement exceeding the IRS rate will be classified as taxable income to the employee.

To calculate applicable mileage reimbursement for Idaho, do the following:

1. Select the appropriate tax year for your calculation period
2. Enter the total miles driven to compute eligible reimbursement amounts

The calculator below provides precise reimbursement figures based on current rates and specified mileage inputs.

Idaho’s Section 67-2004 requires state agencies to reimburse employees who use their personal vehicles while conducting official state business. Private employers are not subject to the same regulations unless an employee falls under the Idaho Workers’ Compensation rules.

Section 67-2004 for state employees' mileage reimbursement

Section 67-2004 specifies that state employees who utilize personal vehicles for official responsibilities are reimbursed at Idaho's approved rate of $0.70 per mile.

Distance calculations for private vehicle use for government functions must rely on a platform such as Google Maps to determine the most efficient route. When standard mapping resources cannot verify the distance, officials may accept odometer readings. Idaho explicitly prohibits fuel purchases for private vehicles as a substitute for mileage reimbursement.

Regarding commuting expenses, Idaho does not reimburse travel between residence and workplace or other non-official travel, with one exception: Employees participating in agency commuting plans that have received written approval from the Governor's Office.

When employees use personal vehicles despite government vehicle availability, reimbursement decreases to 50 percent of the standard rate.

Mileage reimbursement laws when traveling to airports

Idaho has its own mileage reimbursement protocol, ITD-633, for business-related airport travel for state employees. Under this regulation, employers must provide reimbursement for whichever represents the shorter distance: From an employee's residence to the airport or from their official workstation to the airport. The policy also stipulates that employees must select the most economical travel arrangements available.

Worker’s compensation regulations

Idaho's Worker's Compensation provisions—Codes 72-432 and 72-433—outline specific mileage reimbursement standards that merit consideration. Though not directly applicable to private employers, alignment with these regulations supports broader compliance with Idaho's mandatory Workers' Compensation Act.

These codes establish two primary requirements for employers. First, they must provide mileage reimbursement when workers travel to receive medical examinations or treatments for work-related injuries. Second, the compensation must adhere to the state-approved rate.

Yet, not all of the miles traveled for a workplace injury need to be reimbursed. Employees are not reimbursed for the first 15 miles of any round-trip travel or for any travel that is 15 miles round-trip or less.

Title 44-1502 for minimum wages

While Title 44-1502 primarily establishes minimum wage parameters, its provisions carry significant implications for employee reimbursement practices. The statute establishes Idaho's base wage at $7.25 per hour, matching the federal minimum standard.

The regulation creates a distinct classification for service personnel receiving tips. Employers must provide tipped employees a direct wage of no less than $3.35 per hour, with gratuities expected to bridge the gap to meet the full minimum wage requirement.

A key consideration emerges regarding mileage compensation: Employers must verify that an employee's total compensation—including both direct wages and gratuities—remains at or above the minimum wage threshold even when factoring in unreimbursed travel expenses.

Idaho's approach to employee mileage reimbursement offers varied structures with different implications for public and private employers. While government agencies must adhere to legal requirements, private organizations have flexibility in creating their own reimbursement policies beyond Workers' Compensation regulations and minimum wage standards.

With expense management software like Brex, employers can utilize the IRS-determined mileage reimbursement rate, develop their own rate, or implement a fixed and variable rate (FAVR) program. This enables businesses to establish reimbursement rates that better reflect local market costs while meeting minimum wage requirements.

Brex also provides efficient travel monitoring with integrated mileage tracking. Combined with policy controls within the Brex platform, companies can verify employees remain compliant with business-related travel guidelines while eliminating manual review processes and potential errors.

Idaho mileage reimbursement regulations create distinct frameworks for public and private employers. State employees must receive $0.70 per mile under Section 67-2004, while private businesses face no such mandate but should still consider Workers' Compensation regulations and minimum wage implications.

Clear mileage reimbursement policies represent a strategic business decision even when not legally required. Well-structured approaches help maintain compliance with minimum wage standards, avoid potential legal complications, and create a more equitable work environment that supports employee retention.

Brex's expense management software offers a solution for businesses seeking to streamline their mileage reimbursement processes. The platform automates expense reimbursement, approvals, and receipt capture, eliminating time-consuming manual processes and reducing administrative burdens. With automatic enforcement of spending policies, companies can ensure consistent application of reimbursement rates while maintaining compliance with relevant regulations. Brex delivers exceptional value by combining corporate cards, expense management automation, bill pay, travel management booking, and startup banking on a single integrated platform, providing businesses with complete visibility and control over their financial operations. Sign up for Brex today.