Employers operating in the state of Georgia are not required to reimburse employees for mileage. However, many employers do reimburse mileage. What is the appropriate mileage rate for Georgia businesses?
What the Georgia mileage rate for 2025?
State employees in Georgia receive mileage reimbursement at the rate of 70 cents per mile. This is the same as the federal rate determined by the U.S. General Services Administration (GSA). Private businesses do not have to pay a mileage reimbursement to employees.
But many Georgia employers do pay a mileage reimbursement. The Georgia mileage reimbursement rate of 70 cents per mile is a good benchmark. However, businesses should consider the actual expense needs of their drivers before deciding on a mileage rate. The state employee rate may not be the best rate for private employees.
What was the 2024 Georgia mileage rate?
In 2024, the standard mileage rate was 67 cents per mile. Georgia state employees received mileage reimbursement at this rate, and many businesses also reimbursed employees at this rate.
For independent contractors filing 2024 taxes, this is the federal mileage rate for deductions. But that raises the question of whether the federal mileage rate is the best rate for private businesses to pay their employees.
Georgia state mileage reimbursement laws
Georgia does not have any laws requiring businesses to reimburse their employees for mileage. The only exception is for Workers' Compensation. When an employee receiving Workers' Compensation travels to a medical appointment, that mileage should be reimbursed.
It is also important to make sure that vehicle travel costs do not reduce an employee's salary below the minimum wage. However, the minimum wage in Georgia is very low at $5.15/hour, which means that employers instead go by the federal minimum wage of $7.25/hour.
How to calculate a fair Georgia mileage rate for 2025
Starting with the state employee rate of 70 cents per mile is a good idea. But Georgia employers should consider other factors. Where do their employees live and work? Where will they incur most of their vehicle costs? Location matters a lot.
An employee based in Atlanta may face higher costs than an employee based in a more rural part of the state. The mileage reimbursement rate for Georgia businesses should be high enough to cover workers based in the most expensive parts of the state.
Expenses a Georgia mileage reimbursement covers
When calculating a fair mileage rate for Georgia drivers, take into account the following costs:
- fuel
- maintenance (oil changes, tires, etc.)
- depreciation
- insurance
- registration, taxes, and fees
The Georgia state employee rate of 70 cents per mile is based on the federal rate. That federal rate captures the average expenses of U.S. drivers. Determining a fair Georgia mileage rate may depend on determining whether your employees face, average, above average, or below average costs.
Location costs and Georgia mileage rates
Some businesses may decided to just go with the 70 cents per mile because that is a competitive, attractive mileage rate. Others that decide to compare the rate to location-based costs may decide differently.
There is a mileage reimbursement method that automatically uses local costs to set mileage rates. This method, known as fixed and variable rate (FAVR), reimburses each employee a bit differently based on where they are located.
FAVR mileage rates for Georgia
The fairest mileage rates for Georgia workers will be calculated using the FAVR method. This method ensures that no one is under-reimbursed or over-reimbursed relative to their actual expenses. The IRS has categorized FAVR reimbursement as a tax-free method, making it cost-effective and competitive.
To calculate FAVR mileage rates for Georgia drivers, a business partners with a vendor that specializes in FAVR vehicle plans. Learn more about how to partner with mBurse for FAVR reimbursements and to get access to our state of the art mileage tracking app, mLog.
