Louisiana Mileage Reimbursement Laws and Rates

In Louisiana, understanding the specific rules and laws governing mileage reimbursement is essential for both state employees and private employers.

Mileage reimbursement compensates employees for the expenses incurred when using their personal vehicles for business purposes. Typically based on the distance traveled, this practice helps cover fuel, maintenance, and depreciation costs. While most states align with federal guidelines set by the Internal Revenue Service (IRS), Louisiana has its own set of rules that add important nuances to the process.

Louisiana’s Unique Legal Landscape

Louisiana’s approach to mileage reimbursement is defined by several legal mandates and administrative policies:

State Employees and L.R.S. 23:1203D

Louisiana law requires that state employees using their personal vehicles for official business be reimbursed for their mileage. Under L.R.S. 23:1203D, the state has established a reimbursement rate of $0.70 per mile for 2025. This rate covers all the ordinary expenses associated with vehicle use and ensures that employees are not out-of-pocket when performing state business.[1]

In addition, the statute outlines specific guidelines:

• Mileage cap: up to 900 miles can be reimbursed without requiring special permission for extended travel, particularly for out-of-state journeys.
• Documentation: reimbursement calculations must be based on actual odometer readings or reliable mileage tracking apps, ensuring that every mile is accurately accounted for.

Reimbursement for Injured Workers

Under Code §1203 of Louisiana’s Workers’ Compensation Act, the law mandates that injured employees must be reimbursed for mileage when traveling to medical appointments. This includes trips to doctors, physical therapy sessions, pharmacies, and vocational rehabilitation centers. In 2025, these reimbursements also use the $0.70 per mile rate.[3]

Private Employers: Flexibility With Conditions

For private employers, Louisiana law does not strictly require mileage reimbursement for business travel—unless it relates to Workers’ Compensation claims. While many businesses voluntarily adopt fair reimbursement policies to ensure their employees are not burdened by travel costs, there is no legal mandate to do so for non-injured employees.

The Labor Law Center explains that, outside of Workers’ Compensation, reimbursement policies are generally at the employer’s discretion, though many follow state practices for fairness.[4]

Best Practices for Calculating Mileage

Accurate mileage tracking is crucial for compliance and fairness. Here are some practical tips:

• Use odometer readings or mileage apps: reimbursements should be based on actual physical addresses. Employees can use reliable tools such as Cardata’s app or other mileage calculators to determine the exact distance traveled.
• Document every trip: whether it’s a routine trip for state business or a visit to a medical provider under Workers’ Compensation, thorough documentation (including odometer readings) is key.
• Consider special circumstances: for instance, if multiple people travel in the same vehicle, only one reimbursement claim is allowed. Similarly, airport mileage or out-of-state travel might require additional documentation or special approvals.

For an in-depth look at the specific procedures and restrictions (such as limits on in-domicile mileage and the process for non-routine travel), the Louisiana Department of Administration’s travel policies provide comprehensive guidelines.[5]

Tax Implications of Mileage Reimbursement

Mileage reimbursements have tax implications that both employers and employees should consider:

• Tax-free reimbursements: when reimbursements do not exceed the IRS-approved mileage rate, they are typically considered a non-taxable expense.
• Excess amounts: any reimbursement paid above the standard rate may be subject to taxation as income.

Employers must carefully design their mileage reimbursement policies to comply with IRS rules, ensuring that excess payments are appropriately reported and taxed.

Final Thoughts

Understanding Louisiana’s mileage reimbursement laws is vital for maintaining compliance and ensuring that employees are fairly compensated for their business-related travel. Whether you’re a state employee governed by L.R.S. 23:1203D, an injured worker entitled to Workers’ Compensation benefits, or a private employer setting your own policies, staying informed about these rules is essential.

By adhering to proper documentation practices, using reliable mileage calculators, and keeping abreast of legal updates, organizations can streamline expense management and foster a positive work environment.

For the latest details on reimbursement rates and any changes to state policies, always refer to official state resources and legal advisories.

Resources 

1. Louisiana Mileage Reimbursement Rates 2025
2. Office of Workers’ Compensation Administration Mileage Reimbursement
3. State of Louisiana Office of Technology Services Travel Procedures
4. State of Louisiana Mileage Reimbursement Laws
5. LOUISIANA TRAVEL POLICY 2024-2025