South Carolina established its standard business mileage reimbursement rate at $0.70 per mile for 2025, matching current IRS guidelines for state employees. This figure serves as a valuable reference point, though private employers maintain complete discretion to establish their own reimbursement rates based on company needs and financial considerations.

To provide context for these figures, examining the year-over-year progression of IRS standard mileage reimbursement rates offers helpful perspective on recent trends and potential future adjustments that might influence your company's policy decisions.

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 South Carolina, 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.

Understanding mileage reimbursement requirements in South Carolina is an important part of effective employer management. While the state strictly follows IRS rates for government employees, private sector employers work under different guidelines. The main mandatory compliance situation involves workers' compensation cases.

Here are the essential aspects of South Carolina's mileage reimbursement regulations that directly affect businesses. This information helps private employers create effective reimbursement policies that meet legal requirements while serving as meaningful parts of total employee compensation packages.

General appropriations act for mileage reimbursement for state employees

The General Appropriations Act stipulates that South Carolina state employees receive mileage reimbursement at the current IRS standard rate of $0.70 per mile when using personal vehicles for work travel.

The policy includes a notable financial incentive structure to promote efficient resource allocation. When employees have access to motor pool vehicles but opt to use their personal automobiles instead, the reimbursement rate decreases slightly to $0.68 per mile. This modest difference serves as a subtle financial nudge encouraging utilization of state owned vehicles when available, helping manage overall transportation costs for government operations.

South Carolina workers' compensation law for mileage reimbursement for injured workers

Private sector employers in South Carolina face compulsory compliance with the state's Workers' Compensation Law, which establishes non-negotiable mileage reimbursement requirements for work-related injuries. The statute obligates businesses to provide financial compensation for transportation costs incurred by injured workers seeking medical care.

The law specifically requires employers to reimburse qualifying travel expenses, though minimum distance thresholds apply. Compensation becomes mandatory when injured employees travel more than five miles for medical appointments or exceed ten miles for pharmacy visits related to their workplace injuries.

A historical analysis of reimbursement rates under South Carolina's Workers' Compensation Act follows, illustrating the financial implications for employers operating within the state.

Federal regulations vs South Carolina reimbursement laws

Many business owners in South Carolina mistakenly believe that mileage reimbursement follows the same pattern as minimum wage. Because the state uses the federal minimum wage of $7.25 instead of creating its own, people often assume mileage rules work the same way.

However, the rules are actually quite different. While government employees in South Carolina must receive the standard IRS mileage rate, private businesses have much more freedom. As a private employer in South Carolina, you can create your own mileage reimbursement policy.

This freedom allows you to set rates that work for your specific business situation and financial resources. This represents a significant difference from the strict federal guidelines that government agencies must follow.

South Carolina businesses benefit from clearly defined, fair mileage reimbursement practices—ensuring compliance with state laws, reducing disputes, and enhancing employee satisfaction. Here are specific tips to help your company effectively manage mileage reimbursement.

Clearly define eligible and ineligible mileage

Establish a detailed employee mileage reimbursement policy specifying which work-related trips qualify, such as client visits, sales calls, training sessions, or job-related errands. This clarity helps employees understand exactly when they should track their miles for reimbursement. Make it clear that regular commuting between home and workplace typically isn't eligible for expense claims, which prevents confusion and unnecessary submissions. When everyone understands the boundaries, you'll face fewer disputes and have more consistent expense reporting throughout your organization.

Consider using the IRS standard mileage rate as a baseline

Although South Carolina private employers aren't required to match the IRS rate ($0.70 per mile in 2025), adopting this benchmark simplifies your expense reimbursement policies and provides clarity for both accounting and employees. The IRS rate is calculated to account for fuel, maintenance, depreciation, and insurance, making it a fair measure of vehicle costs. If you choose a different rate, clearly explain your reasoning and inform employees about potential tax implications, particularly if reimbursements exceed the standard IRS rate.

Implement reliable mileage tracking methods

Promote consistent mileage documentation through user-friendly mobile apps, or provide standardized company mileage logs that capture all necessary information. Reliable records protect both employers and employees when questions arise about travel expenses. Establish clear guidelines for expense claim submissions, including documentation requirements, approval processes, and reimbursement timelines. This structure helps ensure accurate record-keeping while making the expense reporting process more efficient for everyone involved.

Establish clear procedures for workers' compensation mileage reimbursement

Detail your compliance with South Carolina Workers' Compensation mileage rules, particularly the requirement to reimburse injured employees who travel over five miles for medical treatments or ten miles for pharmacy visits. This is one area where South Carolina law creates mandatory employee mileage reimbursement obligations for private employers. Make sure your HR team and managers understand these requirements to ensure timely and accurate reimbursements for injured workers, minimizing your legal exposure and supporting employees during recovery.

Address mileage expenses relative to South Carolina's wage laws

While South Carolina follows the federal minimum wage ($7.25 per hour), explain how your expense reimbursement policy ensures employees don't effectively earn below minimum wage due to business-related travel expenses they absorb. This consideration is particularly important for employees whose regular wages are close to the minimum wage threshold. Periodically review compensation data to verify ongoing compliance with minimum wage requirements after accounting for work-related vehicle expenses.

Educate employees and managers regularly

Provide training sessions and informational resources that outline your mileage reimbursement policies, helping employees understand their responsibilities for tracking and documenting business travel. This education should be part of new hire onboarding and refreshed periodically for all staff. Include practical examples that illustrate when travel is reimbursable and when it isn't, reducing misunderstandings about expense claims before they occur. When everyone understands the expense reporting process, you'll see higher quality submissions and faster reimbursement processing.

South Carolina's approach to mileage reimbursement illustrates the complex interplay between federal standards and state-specific regulations. While government employees receive standardized rates aligned with IRS guidelines, private employers maintain significant latitude in crafting policies tailored to their organizational needs. This regulatory framework creates a balanced system that protects workers in essential circumstances, such as work-related injuries, while affording businesses reasonable flexibility in managing operational expenses.

The financial implications of mileage reimbursement extend well into organizational efficiency and employee satisfaction domains. Companies that establish transparent, equitable reimbursement structures not only ensure compliance with applicable regulations but also enhance their competitive standing in talent recruitment and retention. As transportation costs continue their upward trajectory, thoughtful reimbursement policies increasingly represent a material component of total compensation strategies.

Brex's expense management software offers a solution for businesses seeking to streamline their reimbursement processes. The platform automates expense reimbursement, simplifies approval workflows, captures receipts electronically, and enforces spending policies without manual intervention. By combining corporate cards, expense management, bill pay, startup banking, and travel booking into a single unified platform, Brex eliminates the complexity typically associated with expense management. Sign up for Brex today to transform your company's approach to your expense reimbursement process.