Nebraska has set the 2025 mileage reimbursement rate at $0.70 per mile. This figure, established by the Department of Administrative Services in accordance with Statute 81-1176, applies to all state employees who use personal vehicles for work purposes.

For private sector employers in Nebraska, this specific rate is not legally binding except in cases involving medical travel pursuant to the Workers' Compensation Act. Private companies maintain flexibility in determining their own reimbursement structures.

The state of Nebraska has historically aligned its reimbursement rates with those published by the Internal Revenue Service. The accompanying table provides an overview of Montana's current reimbursement rates, showing how they correspond with standard IRS rates and presenting an analysis of year-to-year rate 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 Nebraska, 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.

State laws like Statute 81-1176 and Statute 48-120 of the Workers' Compensation Act might seem focused only on protecting employees, but they actually offer surprising benefits for employers too. The Workers' Compensation Act even applies to private businesses.

A thorough understanding of these significant laws, beginning with Statute 81-1176, provides private employers with both compliance assurance and workforce motivation advantages. Companies that master these regulations can simultaneously maintain legal standing while fostering employee satisfaction.

Statute 81-1176 for state employees' mileage reimbursement

Statute 81-1176 in Nebraska mandates mileage reimbursement for state employees using personal vehicles for official functions. The Department of Administrative Services has established a reimbursement rate of $0.70 per mile effective January 1, 2025.

Nebraska’s mileage reimbursement rates include varied compensation rates for alternative transportation modes. State employees utilizing personal motorcycles receive $0.68 per mile. Those operating privately-owned aircraft qualify for $1.75 per mile.

This statute serves a fundamental purpose in Nebraska's state employment system. It ensures state workers incur no personal financial burden when using their own vehicles for state business functions. The law effectively transfers the transportation cost liability from individual employees to their government employer.

Statute 48-120 of workers' compensation law for injured employees' mileage reimbursement

Nebraska's Workers' Compensation Act, specifically Statute 48-120, requires private employers to reimburse mileage when employees seek medical treatment for work-related injuries. In 2025, this reimbursement stands at $0.70 per mile, matching the rate established for state employees.

This provision aims to remove financial obstacles that might prevent injured workers from obtaining necessary medical care. The statute contains several specific requirements for employers.

The law grants employees the right to select their medical provider. When employees decline to exercise this option, employers may designate a healthcare provider on their behalf. Employers must provide mileage compensation for all travel directly related to medical treatment within the appropriate scope of care.

The statute includes significant financial consequences for non-compliance. Employers who fail to provide these benefits within the 30-day statutory period face a 50 percent penalty on the original reimbursement amount owed to the employee.

Nebraska minimum wage law (Statute 48-1203) and its implications on mileage reimbursement

Statute 48-1203 of Nebraska's Minimum Wage Law sets the state's minimum wage at $13.50 per hour for 2025, part of a planned series of increases continuing through 2026. The table below shows what this progression will look like over time.

Note: Following 2026, Nebraska's minimum wage will rise according to annual cost of living assessments. The adjustment mechanism compares the August consumer price index for Midwest urban consumers against the prior year's August figures, with all increases rounded upward to the nearest five-cent increment.

While this statute contains no explicit provisions regarding mileage reimbursement, it creates indirect implications for employers. The law strictly prohibits employee compensation from falling below the established minimum wage threshold. Consequently, employers bear legal responsibility to compensate for any shortfall should the absence of mileage reimbursement effectively reduce worker earnings below the state-mandated minimum wage level.

While Nebraska law doesn't require private businesses to reimburse most employee mileage, implementing a clear policy offers significant advantages. A well-designed reimbursement program helps Nebraska employers maintain legal compliance (especially with Workers' Compensation requirements), simplify expense administration, boost employee satisfaction, and control travel costs through better tracking and oversight.

Establish clear guidelines and eligibility

Define precisely which travel activities qualify for reimbursement, such as client meetings, business deliveries, required training sessions, and travel between work sites. Explicitly state what won't be reimbursed, typically including regular commuting between home and primary workplace or personal errands during work hours. Create a standardized process for submitting expense claims, including required information like date, starting location, destination, business purpose, and exact mileage. Specify submission deadlines that align with your payroll schedule and detail what supporting documentation employees need to provide, such as receipts for related expenses like parking and tolls.

Leverage mileage tracking technology

Provide employees with reliable tracking tools that automatically record trip distances using GPS technology. These applications eliminate manual calculations, create consistent documentation that satisfies IRS requirements, and reduce errors that can lead to over-reimbursement or employee frustration. Many tracking apps allow users to easily categorize trips as business or personal with a simple swipe, generating detailed expense reports that include all necessary information for proper expense reimbursement and potential tax deductions. Offer brief training sessions to ensure employees understand how to use these tools effectively, particularly for workers who frequently travel across Nebraska's rural areas.

Ensure regular communication with employees

Make your complete expense policy easily accessible through employee handbooks, company intranets, or direct distribution. Include the expense policy in new hire orientation materials, particularly for positions involving regular travel. Send timely updates whenever you adjust reimbursement rates or modify submission requirements, especially after annual IRS rate changes. Create simple reference materials like quick-start guides or visual workflows that illustrate the entire reimbursement process from tracking miles to receiving payment. Establish clear points of contact for employees with questions about mileage reimbursement, ensuring they receive consistent, accurate information about your company's policies.

Review and update policies regularly

Schedule annual reviews of your employee mileage reimbursement policy to evaluate its effectiveness and ensure alignment with current IRS rates, which typically change each January. Pay particular attention to Nebraska's Workers' Compensation requirements under Statute 48-120 and the state's increasing minimum wage under Statute 48-1203, which reaches $13.50 per hour in 2025 and $15.00 in 2026. Consult with accounting or HR professionals familiar with Nebraska's specific regulations to identify potential compliance issues or tax optimization opportunities. Compare your reimbursement rates against industry standards and regional benchmarks to remain competitive in Nebraska's labor market, particularly for positions requiring significant travel.

Nebraska employers face clear distinctions in mileage reimbursement requirements. State employees receive guaranteed protections under Statute 81-1176, while private sector requirements mainly center on workers' compensation rules and minimum wage standards.

The benefits for private companies go well beyond simply following regulations. Businesses offering fair mileage reimbursement attract and keep valuable talent more effectively. These policies also shield organizations from potential wage violations that might otherwise lead to costly penalties.

Brex expense management software provides Nebraska employers a powerful solution for managing these responsibilities. The platform automates expense reimbursements, approvals, and receipt capture while consistently enforcing company spending policies. Brex simplifies financial operations by combining corporate cards, expenses, reimbursements, bill payments, travel booking, and startup banking all in one user-friendly platform. Sign up for Brex today to transform your company's mileage reimbursement process and ensure you stay compliant with all regulations.