# South Dakota Mileage Reimbursement Rates and Laws (2026) Learn the South Dakota's 2026 mileage reimbursement rates and state guidelines. Calculate employee reimbursements quickly with our free online calculator. **URL Source:** https://www.brex.com/tools/mileage-reimburse-calculator/south-dakota-mileage-reimbursement-rate --- ### Text South Dakota mileage reimbursement rates and laws (2026) ### Image ![Kansas-mileage-reimbursement](https://brand.brex.com/transform/4380c760-caf7-4aa3-b506-307530df2705/Kansas-mileage-reimbursement) ### Introduction South Dakota establishes separate mileage reimbursement regulations for state employers and private businesses. [South Dakota Statute § 3-9-1](https://sdlegislature.gov/Statutes/3-9-1) requires the government to pay state employees when they use their own cars for work, but there are no stipulations requiring private businesses reimburse employees for mileage. Although not required, businesses that repay employees for their driving expenses can better retain talent and keep job satisfaction high. These practices also help companies follow South Dakota's Minimum Wage Law, creating fewer legal complications. While South Dakota's Workers' Compensation Program doesn't always require mileage reimbursement, companies that provide it show they value fair treatment of workers. ### Business mileage reimbursement rates in South Dakota For 2026, South Dakota pays state workers $0.70 per mile when they use their own cars for work travel. When employees choose personal vehicles despite having access to state cars, they receive $0.315 per mile, or 45% of the full rate. Per Statute § 3-9-1, South Dakota typically sets the reimbursement rates on October 1 of the preceding year, so [2026’s rates](https://sdsos.gov/about-the-office/board-of-finance/bof-docs/Travel%20Reimbursement%20FY2026.pdf) were set on October 1, 2025. As a result, South Dakota’s current reimbursement rates align with the IRS standard business mileage rate in effect as of October 1 (i.e., the 2025 IRS business rate of $0.70 per mile). Private businesses are not required to use these specific rates, but implementing these same policies can help businesses stay within South Dakota's Minimum Wage Law requirements. Below is a breakdown of South Dakota's mileage reimbursement rates which vary by vehicle type and use. _**Note:** Private 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._ ### South Dakota mileage reimbursement calculator To calculate applicable mileage reimbursement for South Dakota, 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. ### Mileage reimbursement laws in South Dakota Implementing South Dakota's mileage reimbursement guidelines can protect your business from legal problems and lawsuits, even though state law doesn’t require private employers to pay for mileage. The key policies range from specific rules for government workers under §3-9-1 to general recommendations for private companies. Here's a list of important policies that could affect how you run your business. Statute §3-9-1 for state employees' mileage reimbursement South Dakota's Bureau of Finance and Management handles mileage payments for state workers under Statute §3-9-1. When employees use their own cars for state business, they’re repaid at the standard rate. State law also gives people with special needs who use modified vehicles a higher payment rate of 130% of the standard rate. This higher rate also applies to privately owned passenger or cargo vans, pickup trucks, and SUVs. Workers’ Compensation law and its impact on mileage reimbursement If an employee gets injured while on the job and qualifies Worker’s Compensation, your business may have to reimburse any mileage traveled for your employee to receive medical care. In South Dakota, if an employee travels more than 60 miles to receive medical care, your business does not need to provide mileage reimbursement under the state's Workers’ Compensation laws, or [Statute 62-4-1](https://sdlegislature.gov/Statutes/62-4), with some exceptions. Here's a quick look at the [mileage reimbursement rates for injured workers](https://dlr.sd.gov/workers_compensation/documents/mileage_rates_historical.pdf). South Dakota minimum wage law and mileage reimbursement While the Minimum Wage Law doesn't force you to pay for mileage, you must make up the difference if car expenses for work drop your employees' pay below these minimums. The current minimum wage in South Dakota is $11.85 per hour for non-tipped employees, up from $11.50. ### Establishing mileage reimbursement policies in South Dakota For private employers in South Dakota, mileage reimbursement policies can have several benefits. If your business is considering implementing such a policy, keep these tips in mind. Define business travel Establish transparent guidelines about what qualifies for reimbursement. Help employees distinguish between personal commuting and legitimate business travel to prevent confusion and ensure fair application of your policy. Simplify your approvals Streamline how mileage claims move from submission to payment. Create a straightforward process that balances necessary oversight with quick processing to keep reimbursements running smoothly. [Expense management software](https://www.brex.com/spend-trends/expense-management/best-expense-management-software-solution) can automate this process and eliminate manual errors. Set a regular submission and reimbursement schedule Establish consistent timeframes for submitting and reimbursing travel expenses. Whether weekly, bi-weekly or monthly, regular submissions and payments help employees maintain accurate records and allow finance teams to process reimbursements more efficiently. Create straightforward documentation standards Develop systems for recording essential trip information without creating excessive paperwork that discourages prompt and accurate reporting. Focus on capturing necessary details, such as starting point, destination, date, purpose, and total miles. Integrating software into your reimbursement process can automatically generate necessary documentation. Conduct periodic policy audits Schedule regular reviews of your reimbursement rates and procedures. Market conditions, fuel prices, and business needs evolve over time, making periodic adjustments essential for maintaining an effective program. This can also help ensure that your business is in compliance with minimum wage requirements. ### Automate your employee reimbursements with Brex While maintaining flexibility for private businesses, the framework established by statutes like §3-9-1 provides clear guidelines that help companies manage travel expenses effectively. Companies that implement thoughtful reimbursement policies can find the investment pays dividends through improved retention and workplace satisfaction. Brex's [expense management software](https://www.brex.com/product/expense-management) offers South Dakota businesses a streamlined solution to these reimbursement challenges. The platform automates expense reimbursement processes, simplifies approvals, captures receipts digitally, and enforces [expense policies](https://www.brex.com/spend-trends/expense-management/expense-policy) without manual oversight. By combining [corporate cards](https://www.brex.com/product/credit-card), expense management, automated bill pay, and accounting automation on a single platform, Brex eliminates the administrative burden that often accompanies mileage tracking and payment. [Sign up for Brex](https://www.brex.com/signup) today. ## Related Articles ### [Maine mileage reimbursement rates & calculator](https://www.brex.com/tools/mileage-reimburse-calculator/maine-mileage-reimbursement-rate) Calculate Maine mileage reimbursement accurately with updated 2026 rates. Learn state guidelines, minimum wage rules, and best practices to simplify tracking. ### [Delaware mileage reimbursement rates & calculator](https://www.brex.com/tools/mileage-reimburse-calculator/delaware-mileage-reimbursement-rate) Delaware law requires employers to reimburse mileage for medical travel but not for regular business trips. The state reimbursement rate is $0.50/mile for 2026. Understand your obligations here. ### [Idaho mileage reimbursement rates & calculator](https://www.brex.com/tools/mileage-reimburse-calculator/idaho-mileage-reimbursement-rate) Understand Idaho's 2026 mileage reimbursement laws and IRS-aligned rates. Learn tips for controlling costs and ensuring employer compliance. ### [Utah mileage reimbursement rates & calculator](https://www.brex.com/tools/mileage-reimburse-calculator/utah-mileage-reimbursement-rate) Learn Utah's 2026 mileage reimbursement rates and state laws. Calculate employee reimbursements quickly with our free online calculator. ### [South Carolina mileage reimbursement rates & calculator](https://www.brex.com/tools/mileage-reimburse-calculator/south-carolina-mileage-reimbursement-rate) Learn the South Carolina's 2026 mileage reimbursement rates and state guidelines. Calculate employee reimbursements quickly with our free online calculator. ### [Michigan mileage reimbursement rates & calculator](https://www.brex.com/tools/mileage-reimburse-calculator/michigan-mileage-reimbursement-rate) Easily calculate mileage reimbursement in Michigan with our updated 2026 calculator. Learn best practices for policy creation, legal compliance, and expense reporting.