Kansas Mileage Reimbursement 2026: Laws, IRS Rate & Employer Rules

If employees use their personal vehicles for work in Kansas, there is no single mileage reimbursement rate that every private employer is required to pay.

Many employers use the IRS standard mileage rate as a benchmark. 

In 2026, the IRS business rate is 72.5 cents per mile from January 1 through June 30 and 76 cents per mile beginning July 1. The IRS says the mid-year increase reflects recent increases in fuel prices.

Kansas also has separate mileage reimbursement rules for state employees and workers’ compensation travel. 

Those state rates do not automatically move with the IRS rate, which is an important distinction in 2026.

Here is what Kansas employers and employees should know.

What Is the Kansas Mileage Reimbursement Rate for 2026?

Kansas does not have a mandatory mileage reimbursement rate that applies to ordinary business driving by all private employers in 2026. 

Employers that reimburse employees for business mileage often use the optional IRS standard mileage rate as a benchmark.

The IRS business mileage rates for 2026 are:

• January 1 through June 30, 2026: 72.5 cents per business mile
• July 1 through December 31, 2026: 76 cents per business mile

The IRS increased the rate mid-year because of higher fuel prices. The 76-cent rate applies to qualifying business transportation expenses paid or incurred on or after July 1. 

For employee mileage allowances, the revised rate applies when the allowance is paid on or after July 1 and relates to transportation expenses paid or incurred by the employee on or after July 1.

The IRS standard mileage rate is optional. 

It gives employers a straightforward national benchmark for documented business mileage, while other reimbursement structures may make more sense for different employee populations.

Do Private Employers Have to Reimburse Mileage in Kansas?

Kansas does not set a general per-mile reimbursement requirement for ordinary private-sector business driving.

Private employers therefore have flexibility in how they structure mileage reimbursement. 

Employment agreements, collective bargaining agreements, written policies, and other requirements applicable to a particular workforce can still affect an employer’s obligations.

For employees who regularly use personal vehicles for work, a written mileage reimbursement policy can define which trips qualify, what documentation employees need to provide, which reimbursement method applies, and when payments are processed.

Kansas’s rules for official state travel and workers’ compensation transportation apply in their own specific contexts and are covered separately below.

When Can Mileage Reimbursement Be Tax-Free?

Mileage reimbursement can generally be excluded from an employee’s federal taxable wages when the reimbursement arrangement satisfies IRS accountable-plan requirements.

Under IRS Publication 463, an accountable plan generally requires three things:

1. The expense must have a business connection.
2. The employee must adequately account for the expense within a reasonable period.
3. The employee must return any excess reimbursement or allowance within a reasonable period.

When employees meet those requirements, qualifying reimbursements generally are not reported as pay. 

The IRS also requires appropriate records to substantiate business expenses.

For mileage, employees should keep records showing information such as the date, destination, mileage, and business purpose of the trip.

The reimbursement rate alone does not determine tax treatment. 

The structure of the program, adequate substantiation, and treatment of excess reimbursement all matter.

What Counts as Business Mileage in Kansas?

Business mileage generally means driving for a legitimate business purpose rather than ordinary commuting between home and a regular workplace.

Examples can include driving from an office to a customer location, traveling between job sites during the workday, making deliveries or service calls, and traveling to certain temporary work locations.

The IRS generally treats transportation between an employee’s home and regular workplace as personal commuting. 

Different rules can apply to qualifying temporary work locations and certain home-office situations. 

You can find the federal rules in IRS Publication 463.

Clearly defining business versus personal vehicle use can help employees keep accurate records and make mileage reimbursement easier to administer.

What Is the Kansas State Employee Mileage Rate for 2026?

Kansas has its own mileage reimbursement rules for official state travel.

Under K.S.A. 75-3203a, the Kansas Secretary of Administration sets mileage allowance rates for privately owned vehicles used for official purposes.

The statute limits those rates to the lowest of:

1. The mileage rate allowed by the IRS.
2. The rate used to prepare the Governor’s budget report.
3. Any revision to the budget rate specifically directed by the legislature.

That formula produces a different schedule from the IRS rate in 2026.

For January 1 through June 30, 2026, Kansas reimbursed privately owned automobile travel at 70 cents per mile. 

The state kept the rate at 70 cents per mile because that was the mileage rate used in preparing the Governor’s FY 2026 budget, which limited the rate Kansas could reimburse under K.S.A. 75-3203a.

Effective July 1, 2026, Kansas increased the automobile reimbursement rate to 72.5 cents per mile for FY 2027. 

The Kansas Department of Administration publishes the applicable state mileage rates through its accounting circulars.

The IRS later raised its business mileage rate to 76 cents per mile for July through December. 

In August, the Kansas Department of Administration confirmed that Kansas would continue using 72.5 cents per mile because the statutory formula limited the state to the mileage index used in the Governor’s FY 2027 budget.

So the Kansas state employee automobile rate for calendar year 2026 is:

• January 1 through June 30: 70 cents per mile
• July 1 through December 31: 72.5 cents per mile

Kansas law also says the mileage allowance covers vehicle costs such as fuel, oil, tires, repairs, insurance, license fees, and depreciation. 

Certain parking charges, turnpike tolls, and bridge tolls can be reimbursed separately under K.S.A. 75-3203.

What Is the Kansas Workers’ Compensation Mileage Rate for 2026?

Kansas workers’ compensation law provides mileage reimbursement in qualifying situations, and the applicable mileage rate is tied to the rate prescribed for Kansas state officers and employees.

Under K.S.A. 44-510h, an employer’s responsibility for necessary medical care can include transportation between an injured employee’s home and a place of treatment when the statutory requirements are met. 

The law says qualifying transportation expenses are computed in accordance with K.S.A. 44-515(a).

K.S.A. 44-515 also addresses employer-requested medical examinations. 

When an employee is required to travel to an examination outside the employee’s place of residence, transportation is paid at the mileage rate prescribed for Kansas state officers and employees under K.S.A. 75-3203a. 

Qualifying tolls and parking fees are handled separately.

The Kansas Department of Labor currently identifies workers’ compensation mileage reimbursement as regulated by the Kansas Department of Administration.

That makes the state mileage rate the relevant reference for qualifying workers’ compensation mileage. 

For specific claims, employers and employees should confirm that the particular trip meets the statutory requirements before applying the rate.

What Mileage Reimbursement Options Can Kansas Employers Use?

Private employers can choose among several ways to reimburse employees for the real, business-required costs of owning and operating personal vehicles for work.

Cents-Per-Mile (CPM)

Cents-Per-Mile (CPM) reimburses employees using a set amount for each qualifying business mile.

Employers can use the IRS standard mileage rate or another rate appropriate for their program. 

CPM can work well for employees who drive occasionally because reimbursement follows documented business mileage.

Accountable-plan requirements still apply when employers want qualifying mileage reimbursements to receive tax-free treatment.

Fixed and Variable Rate (FAVR)

Fixed and Variable Rate (FAVR) reimburses employees for the real, business-required fixed and variable costs associated with owning and operating personal vehicles for work.

Fixed expenses can include insurance, depreciation, registration, and other ownership costs. Variable expenses can include fuel, tires, and maintenance.

FAVR is an IRS-recognized mileage allowance methodology with its own requirements. 

For 2026, the IRS maximum standard automobile cost that may be used to calculate a FAVR allowance is $61,700, according to IRS Notice 2026-10.

Separating fixed and variable costs allows reimbursement to reflect differences in business mileage and geographically variable vehicle expenses.

Tax-Free Car Allowance (TFCA)

A Tax-Free Car Allowance (TFCA) is an accountable reimbursement arrangement designed around the real, business-required costs employees incur when using personal vehicles for work.

Tax-free treatment depends on meeting applicable IRS accountable-plan requirements, including substantiation and appropriate handling of excess payments.

Companies with different driver populations can also use a mixed mileage reimbursement strategy. 

For example, an employer might use FAVR for employees with substantial recurring business mileage and CPM for employees who drive less frequently.

How Should Kansas Employers Manage Mileage Reimbursement?

A clear mileage reimbursement policy helps employees understand which trips qualify, how mileage should be documented, which reimbursement method applies, and when reimbursement is processed.

Accurate mileage records also support IRS accountable-plan requirements and give Finance, HR, and Operations teams better visibility into business driving.

Employers should review their programs regularly. Kansas is a useful example of why. 

During 2026, the IRS changed its business mileage rate mid-year, while Kansas changed its state rate at the start of the state fiscal year and then kept that rate below the new IRS figure.

Build a Mileage Reimbursement Program That Fits Your Kansas Drivers

Kansas private employers have flexibility in how they structure ordinary business mileage reimbursement. 

Federal tax requirements and specialized state and workers’ compensation rules add considerations for particular types of travel.

The right approach depends on how often employees drive, where they work, and the real, business-required costs associated with using personal vehicles.

Cardata helps companies design and manage mileage reimbursement programs, including FAVR, CPM, TFCA, and mixed programs for different driver groups. 

From mileage capture and reimbursement calculations to compliance support and direct-to-driver payments, Cardata helps make mileage reimbursement simpler for employees and easier for Finance, HR, and Operations teams to manage.

Talk to Cardata about building a mileage reimbursement program for your Kansas drivers.