Kansas Mileage Reimbursement Rates and Rules

Mileage reimbursement is an essential component of many businesses’ expense policies—especially for those in Kansas where clear state guidelines ensure employees are fairly compensated for using their personal vehicles on official business.

What Is Mileage Reimbursement?

Mileage reimbursement is the process of paying employees for the wear and tear, fuel, maintenance, and other costs incurred when using their own vehicles for business purposes. While the federal government sets an IRS standard mileage rate to guide many employers, Kansas has developed its own specific rules and rates, particularly for state employees and organizations that opt to align their policies with state law. This ensures that business travel does not erode overall compensation or violate minimum wage requirements.

Kansas Mileage Reimbursement: An Overview

Kansas’s mileage reimbursement framework is governed by several statutes and administrative guidelines. For state employees, mandates like K.S.A. 75-3203a require that mileage allowances cover all reasonable costs associated with using privately owned conveyances. Although reimbursement is mandatory only for state employees, many private employers adopt similar standards to ensure fair compensation and maintain competitive benefits.[4]

Mileage Reimbursement Rates for Different Vehicles

Kansas reimbursement rules differentiate between various types of vehicles and travel purposes. Here’s a snapshot of the rates based on the latest guidelines and tools:

For State Travel (per the Kansas Travel Handbook effective July 2024):

• Automobiles: $0.67 per mile
• Motorcycles: $0.65 per mile
• Airplanes: $1.76 per mile
• Moving-Related Mileage: $0.21 per mile

For private employers (as reflected in recent updates via mileage calculators) the 2025 Business Rate is around $0.70 per mile.

These rates are designed to cover all costs—including fuel, maintenance, insurance (with deductibles), repairs, license fees, and depreciation. The slight differences between state-issued and employer-adopted figures often stem from periodic updates or organizational policies aligned with the IRS guidelines.[1][2]

Calculation Guidelines and Additional Considerations

When calculating mileage reimbursement, Kansas guidelines emphasize using the “most direct, usually traveled” route. Here are some key points:

In-State vs. Out-of-State Travel:

• For in-state journeys, mapping tools (such as Google Maps or AAA-published figures) are used to verify mileage.
• For out-of-state trips, the location of lodging or the official duty station may serve as reference points to determine mileage.

Special Cases for Air Travel:

• For personal airplane travel, distances are typically measured “as the crow flies.”
• Additional expenses like airplane tie-down and landing fees may also be reimbursed, as well as transportation between the airport and the official station.

Additional Reimbursable Expenses:

• Parking fees, tolls, and other incidental costs incurred during business travel are generally reimbursable.

Clear guidelines help both employees and employers manage travel costs accurately while ensuring compliance with state law.[2]

Tax Implications and Compliance

Mileage reimbursement isn’t just about covering expenses—it also has important tax implications. When reimbursements are provided at or below the IRS standard mileage rate, they’re typically considered non-taxable. However, if a company opts to reimburse at a higher rate, the excess amount may be taxable income for the employee (unless you use a FAVR program). Additionally, adherence to statutory requirements (like ensuring that reimbursements do not reduce an employee’s earnings below the minimum wage as outlined in Kansas City’s Minimum Wage Code, K.S.A. 44-1201) is crucial for legal compliance.[3]

Tools for Simplifying Mileage Reimbursement

For employers looking to streamline the reimbursement process, several tools are available. For example, Cardata’s vehicle reimbursement software allows employers to provide tax-free reimbursements easily. These digital tools help maintain consistency in policy application, reduce administrative burdens, and ensure that both state and private employers remain compliant with evolving guidelines.

Conclusion

Understanding and implementing Kansas mileage reimbursement rules is critical for maintaining fairness, ensuring compliance, and supporting employee morale. Whether you’re a state agency bound by specific statutes or a private employer looking to adopt best practices, the guidelines—from vehicle-specific rates to calculation methods and tax considerations—offer a robust framework for managing travel expenses. By staying informed and leveraging digital tools, employers can guarantee that their reimbursement policies not only meet legal requirements but also contribute to a positive work environment.

References

1. Kansas Mileage Reimbursement Rates 2025 
2. Employee Travel Expense Reimbursement Handbook  
3. Mileage reimbursement for businesses: What you need to know | Kansas City Star 
4. Kansas | Labor Law Center