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Our PageFlorida’s known for 237 annual days of sunshine every single year, oranges, and a vibrant tourism economy that’s partially arranged around an amusement park inhabited by a certain mouse-eared mascot.
A tourism-centered economy means lots of people hungry for things to eat, drink, and do, which means products need to be delivered and logistics need to be arranged, and that is probably part of the reason why you’re reading this article today.
If you manage a team of drivers using their personal vehicles for work, we’ve laid out everything you need to know about Florida’s mileage reimbursement rate for 2023.
The good news for Sunshine State reimbursement managers is that Florida is not known for restrictive rules concerning mileage reimbursement rates; in fact, they pretty much leave it up to companies and the Feds, leaving you a great deal of flexibility in how you compensate your employees.
What is the Florida mileage reimbursement rate in 2023?
Florida did not set an official mileage reimbursement rate in 2023. This keeps with precedent in previous years. If that precedent is ever changed, you can check here to see if they’ve announced a state mileage reimbursement rate, but as of today’s writing in 2023, it’s business as usual.
Note these two[1] sources[2] with specific mileage rates here, and an example of what kind of mileage records the Florida Office of the State Court’s Administrator requires their employees to keep.
But these are guidelines for actual employees of FL-OSCA. The requirements don’t apply to everyone working in the state, and in fact, only apply to employees of the Office of the State Court Administrator.
Therefore, the most important thing for you to know is that we can use the Internal Revenue Service’s standard mileage reimbursement rate instead—or a vehicle reimbursement program like FAVR or Accountable Allowance.
This is an optional maximum rate, and if you comply with the guidelines, this rate is also tax-free, meaning no payroll or income tax deducted from mileage reimbursement.
Sticking to the federal mileage reimbursement rate of 65.5 cents per mile for business use means your organization and your employees are unlikely to get hit with an additional tax bill the next time you report.
Note that just because Florida doesn’t have a specific state mileage reimbursement rate doesn’t mean that public institutions like the University of Florida don’t have their own specific reimbursement rate for employees.
Any mileage reimbursement above 65.5 cents per mile will be taxed as though it is income (unless you’re participating in an alternate reimbursement scheme like a FAVR program.) If you reimburse with an allowance higher than the standard rate, then it’s important to stay within the guidelines outlined in IRS Publication 463[3] if you want to maximize your business’s return and spare your employees an unpleasant surprise next March. If you’re wondering how to organize your reimbursement program to be as tax-free as can be, just call us and an expert will be happy to help.
Florida’s average mileage reimbursement rate
Florida is both a food-producing powerhouse and a southern state close to the Gulf of Mexico, where a vast majority of the U.S.’s fossil fuel production and refinement occurs.
This might be part of the reason why the average mileage reimbursement rate per capita in Florida is less than the national average of $600.
Gas is plentiful here, and as the price of fuel for transportation plays a big role in the pricing of, well, just about everything, it’s logical that the average mileage reimbursement rate is quite a bit less than say, New York State.
It turns out that it’s not just gas that’s cheaper in the Sunshine State. According to this source, Florida’s cost of living ranked only 32nd highest in the nation for 2023. [4]
How much did Florida’s citizens spend on transportation for 2023?
First of all, the more children you have, the more it costs, which is why these sources include tables that designate the number of persons per family. It might only cost a single person around $5000 for their yearly transportation expenditures, but as much as $15,000 for a family with multiple children.
This is a number that was produced by MERIC in order to calculate the cost of a living wage for the average Floridian. That’s the base income average before you factor in anything extra like a mileage allowance, or before state income tax has been paid.
And hopefully without any additional income tax because your employee mileage reimbursement program didn’t meet federal guidelines. It’s not getting any cheaper out there.
Luckily with a mileage reimbursement program, employee business travel expenses are covered and accounted for so they don’t have to worry about work transportation.
Florida mileage reimbursement tax laws
Florida’s state legislature hasn’t passed any tax laws concerning mileage reimbursement, and the Florida Department of Revenue hasn’t issued any public pronouncement on mileage reimbursement policy for the state.
Since we don’t have any information suggesting otherwise, we’ll defer to the federal regulations for this topic, which you can review here[5], if you’re so inclined.
A good rule to keep in mind is that any amount in excess of the federal mileage reimbursement rate set by the Internal Revenue Service is likely to be taxable.
Florida mileage reimbursement labor laws
Unless you have been awarded a settlement by the state’s Department of Financial Services,[6] which oversees Florida’s Workers’ Compensation program, there’s nothing specific in Florida’s labor laws concerning mileage reimbursement.
In plain language, you don’t need to offer your employees a mileage reimbursement program. It’s just a considerate thing to do if your drivers rely on their personal vehicles to work for you, and it is something your competitors are already offering.
In more diplomatic language, since the labor laws of the State of Florida do not provide guidelines for the proper mileage reimbursement rate to be used in employment contracts, you are therefore free to design your mileage reimbursement program as you see fit.
Conclusion
Since the federal mileage reimbursement rate offered by the IRS can be updated twice a year, it’s best to keep informed about any changes so you aren’t hit with an unexpected tax penalty.
Cardata’s blog adds new articles most weeks of the year, and since we’re genuinely passionate about vehicles, driving, and taxes, we’re keeping on top of the literature so you don’t have to.
Maybe you’re not interested in the nitty-gritty of all the complicated moving parts that go into designing and offering an employee mileage reimbursement program for your company.
Maybe you could delegate it to a company that’s passionate about this stuff. We’re going to humbly put our names forward: our testimonial page is full of companies we’ve helped out, whether that’s designing a FAVR program or another compensation structure.
You might even recognize a few of them.
Not to brag, but we also made one of the sleekest mileage tracking apps out there, plus some really nifty solutions for business travel tracking, including cloud storage. You know, since we’re on the subject.
Disclaimer: Nothing in this blog post is legal, accounting, or insurance advice. Consult your lawyer, accountant, or insurance agent, and do not rely on the information contained herein for any business or personal financial or legal decision-making. While we strive to be as reliable as possible, we are neither lawyers nor accountants or agents. For several citations of IRS publications on which we base our blog content ideas, please always consult this article: https://www.cardata.co/blog/irs-rules-for-mileage-reimbursements. For Cardata’s terms of service, go here: https://www.cardata.co/terms.
[1] https://www.circuit5.org/wp-content/uploads/2017/10/state-guide-travel-exp.pdf
[2] https://www.flcourts.gov/content/download/219316/file/ReimbursementVoucher.pdf
[3] https://www.irs.gov/forms-pubs/about-publication-463
[4] https://www.sofi.com/cost-of-living-in-florida/
[5] https://www.irs.gov/taxtopics/tc206
[6] https://www.laborlawcenter.com/education-center/florida-mileage-reinbursement/
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