Navigating mileage reimbursement in New York can seem complex, whether you're an employer aiming for fair compensation and compliance, or an employee looking to understand your entitlements. While New York State has specific guidelines for its own employees, the rules for private-sector businesses differ.
This guide will break down what you need to know about mileage reimbursement in New York, from commonly used rates to essential legal considerations and how Fyle can simplify the entire process.
Understanding mileage reimbursement is key for managing operational costs, ensuring your employees are treated fairly for using their personal vehicles for business, and staying on the right side of labor laws. Let's dive into the details for New York.
New York Mileage Reimbursement Rate
A common question is: "What is the official mileage reimbursement rate in New York?" For private employers, New York State does not mandate a specific mileage reimbursement rate.
However, many businesses in New York choose to use the standard mileage rates set by the Internal Revenue Service (IRS) as a benchmark. Using the IRS rate is a common practice because:
- It's considered fair: The rate is calculated annually by the IRS to reflect the average costs of operating a vehicle for business purposes, including fuel, maintenance, repairs, insurance, and depreciation.
- Non-Taxable Reimbursement: When employers reimburse employees at or below the current IRS standard business rate, and proper records are kept, the reimbursement is generally considered non-taxable income for the employee.
As of January 1, 2025, the IRS standard mileage rates are:
- 70 cents per mile for business miles driven.
- 21 cents per mile driven for medical or moving purposes (moving expenses reimbursement is currently limited to active-duty members of the Armed Forces).
- 14 cents per mile driven in service of charitable organizations.
Here’s a look at the recent IRS standard business mileage rates:
It's important to note that New York State government employees have their own reimbursement rates set by the Office of the State Comptroller, which typically align with IRS/GSA rates. However, these specific state employee rules do not dictate requirements for private companies.
New York Mileage Reimbursement Calculator
Ready to estimate your reimbursement? Our New York Mileage Reimbursement Calculator makes it simple.
- Select the Tax Year: Choose the year for which you're calculating reimbursement (e.g., 2025, 2024) to ensure the correct IRS rates are applied.
- Enter Your Mileage: Input the total miles driven for business, medical/moving, and charitable purposes.
- See Your Calculation: Click the "Calculate" button to get an estimate of your total reimbursement based on the entered mileage and the selected year's rates.
This tool is helpful for employees estimating their travel costs and for employers using IRS rates as a basis for reimbursement.
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Some Important New York Mileage Reimbursement Laws (for Private Employers)
While New York doesn't set a specific mileage rate for private businesses, certain labor laws are crucial to understand:
1. No State-Mandated Reimbursement Rate
To reiterate, there is no New York State law that compels private employers to reimburse employees for mileage at a specific rate, or even to reimburse at all unless other conditions apply (see below).
2. New York Minimum Wage & FLSA Compliance
This is the most significant legal consideration. Employers must ensure that any unreimbursed business-related expenses, such as mileage driven in a personal vehicle for work purposes, do not cause an employee's effective hourly wage to fall below the New York State minimum wage.
As of 2025, New York's minimum wage rates are:
- $16.50 per hour in New York City (NYC), Long Island, and Westchester County.
- $15.50 per hour for the rest of New York State.
If an employee's actual take-home pay, after accounting for unreimbursed mileage costs, dips below these hourly minimums for the workweek, it could be a violation of both the federal Fair Labor Standards Act (FLSA) and New York State labor law.
3. Adherence to Company Policy (New York Labor Law Section 198-C)
If an employer does have an established policy or agreement to reimburse employees for mileage or other expenses, they are legally required to follow through on that commitment. Section 198-C of the New York Labor Law addresses the payment of "benefits or wage supplements," which can include expense reimbursements. Failure to pay according to an agreed policy can lead to wage claims.
4. Accurate Record-Keeping
While not a specific New York reimbursement law, maintaining detailed and accurate records of miles driven (including date, purpose, and mileage count) is essential for:
- Employers: To accurately calculate any reimbursements they choose to pay and to defend against potential wage claims related to minimum wage.
- Employees: To substantiate their mileage for reimbursement under a company policy and for their personal tax records if applicable. IRS-compliant logs are a best practice.
New York Mileage Reimbursement Law vs Federal Law
Understanding how New York's approach compares to federal law provides further clarity:
Federal Law (FLSA)
- The FLSA does not explicitly require employers to reimburse for mileage.
- The primary FLSA concern is that unreimbursed expenses (which are for the primary benefit of the employer) must not reduce an employee's earnings below the federal minimum wage ($7.25 per hour).
New York State Law
- No Specific Reimbursement Mandate: Like federal law, NYS doesn't have a statute compelling private employers to pay a set mileage rate.
- Higher Minimum Wage Protections: The key difference is that New York's minimum wage rates ($16.50 in NYC/Long Island/Westchester, $15.50 elsewhere in 2025) are significantly higher than the federal minimum. This means the threshold at which unreimbursed expenses could become problematic is higher in New York. Employers must meet the state's minimum wage, not just the federal one.
- Policy Adherence (NY Labor Law Section 198-C): New York law specifically requires employers to stick to their own established policies on expense reimbursement.
IRS Guidelines
- These are federal guidelines, not laws mandating reimbursement by private employers.
- They establish the rates at which mileage reimbursement is considered non-taxable to the employee. This is why many New York employers, like those elsewhere, adopt the IRS rates for their policies.
GSA Rates
- These are for federal government employees and are set by the General Services Administration. They often align closely with IRS rates but are not direct mandates for private businesses in New York.
In essence, while neither federal nor New York State law forces private employers to adopt a specific mileage reimbursement rate, New York's higher minimum wage creates a more stringent environment where failing to cover significant work-related driving costs could more easily lead to a minimum wage violation.
How Fyle Can Automate Mileage Tracking for Your New York Business
Manually tracking mileage can be a drain on time and resources, especially in a bustling environment like New York. Whether your employees are navigating the five boroughs, driving across Long Island, or covering territories upstate, Fyle offers a smart, automated solution to make mileage tracking and reimbursement effortless and accurate.
- Pinpoint accuracy for every mile: Say goodbye to guesstimates. Fyle leverages Google Maps to provide precise calculations of distances traveled for business. From client meetings in Albany to site visits in Syracuse, every trip is logged with verifiable accuracy, ensuring fair reimbursement.
- Stay compliant with New York's labor laws: With varying minimum wage standards across the state, ensuring your reimbursement practices are sound is crucial. Fyle provides detailed, compliant records, helping you demonstrate that employee earnings remain above legal thresholds, even after accounting for vehicle use.
- Effortless tracking: Your team is busy. Fyle allows employees to track mileage automatically through our mobile app (iOS and Android) or even submit expenses from everyday apps like Slack and Outlook. This means less time spent on paperwork and more time focused on core business activities.
- Customize to your operations: While many New York businesses use IRS rates, Fyle allows you to configure custom mileage rates if your policy differs—perhaps to account for specific vehicle types or the unique toll expenses common in certain New York regions. Set policies that reflect your business needs.
- Streamline your entire expense workflow: Fyle isn't just about mileage. It’s a comprehensive expense management platform. Integrate seamlessly with leading accounting software (like QuickBooks, Xero, Sage, NetSuite), and for US-based companies, reimburse employees quickly via ACH directly from Fyle. This means faster payments for your New York team and simplified reconciliation for your finance department.
- Automated reminders & approvals: Keep the process moving smoothly with automatic reminders for submissions and approvals, ensuring timely processing for everyone involved.
Stop letting manual mileage logs slow down your New York operations. Discover how Fyle can bring efficiency, accuracy, and compliance to your mileage reimbursement process.
