California Mileage Rate 2025: IRS Figure, Reimbursement Policy, and Employer Instructions

California’s mileage reimbursement rate in 2025 is 70 cents per business mile, covering fuel, maintenance, insurance, and depreciation. Employers must ensure reimbursement complies with Labor Code Section 2802 and requires accurate mileage records from employees.

By Brad Nakase, Attorney

Email | Call (800) 484-4610

Have a quick question? We answered nearly 2000 FAQs.

Table of Contents

1. Introduction

2. Section 2802 of the California Law and Labor Code

3. Regulations for the California mileage rate in 2025

4. California mileage rate in 2025

5. How California employees are compensated for business miles

6. How can I maintain a mileage record that complies with California law?

7. FAQs

Introduction

The manner in which companies remunerate employees for work-related items, e.g., mileage reimbursement, is specified by specific legislation in the state of California.

Continue reading if you operate a business and your staff members use their own cars for work-related travel, or if you are a worker who drives your own car for work-related travel.

Section 2802 of the California Law and Labor Code

Employers are required by California Labor Code Section 2802(a) to pay for necessary expenses that workers incur while carrying out their jobs.

This includes the “all reasonable costs” mentioned in Section 2802(c).

Employees are expected to make use of their personal vehicles for work-related purposes if their jobs require them to drive regularly but are not provided with a company vehicle.

As a result, businesses must take into consideration more than only fuel expenses when paying their workers for mileage.

Mileage reimbursement in California is supposed to cover all the costs incurred in the maintenance of the personal vehicle and its usage in business operations. Some of these costs include fuel costs, maintenance costs, road taxes, insurance, leasing charges, as well as depreciation.

The underlying notion of the mileage reimbursement is to compensate the staff members adequately with more than gas expenses when they use their personal cars for the company’s work.

Regulations for the California mileage rate in 2025

California follows the same regulations as the remainder of the nation, with the exception of the more stringent requirement to cover “all required expenses or losses.”

In California, employers have a variety of options when it comes to mileage reimbursement:

Lump-sum (One-time) payments
Mile rate (Cents per mile)
Reimbursement for actual expenses
A combination of the aforementioned

Employees can be asked to submit documentation of their business travel charges, such as receipts, in order to be reimbursed.

Following these straightforward regulations from the IRS is a solid beginning point:

Not commuting to and from work, but business-related travel is covered.
Workers must keep track of their payments and mileage.
Refunds for excess mileage must be given back within a fair amount of time.
Workers should keep accurate mileage logs, preferably updating them immediately following a trip.

An automated logbook that is simple to use could be a smart idea if you have several employees receiving reimbursement as per the California mileage rate in 2025.

California mileage rate in 2025

California mileage rate in 2025

For commercial miles, the IRS mileage rate (2025) is 70 cents a mile.

Mileage rates for California in 2024 & 2023

For business miles, the usual IRS mileage rate for 2024 was 67 cents a mile. In 2023, the mileage rate was $0.655 a mile.

How California employees are compensated for business miles

Because of its ease of administration, the cents per commercial mile rate is one of the most popular mileage reimbursement schemes. Workers get paid monthly and get reimbursed at a fixed amount per mile. Every year, the IRS establishes standardized mileage rates.

How can I maintain a mileage record that complies with California law?

Employers may request various kinds of paperwork in accordance with their reimbursement rules. Generally speaking, a log would contain:

The distance traveled for work
The day
The location
The purpose.

All receipts for any expenses related to the vehicle must be retained and recorded if the reimbursement scheme is based on the actual expense approach. Last but not least, it’s essential to keep track of your car’s entire mileage and determine its percentage of business use.

FAQs

1. How much is the California mileage rate in 2025?

70 cents for each business mile is the California mileage rate in 2025. The IRS-mandated standard mileage rate for 2024 was 67 cents for each business mile.

2. How is mileage reimbursement calculated in California?

Simply multiply the business miles by the rate your company reimburses you at to determine your mileage reimbursement. For instance, your computation would be as follows if you drove 500 miles in December 2024 and your company applied the IRS-mandated standard mileage rate: 500 miles multiplied by 67 cents a mile, $335 is the mileage reimbursement.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment

Most recent blogs:

How Long to Keep Pay Stubs and Payroll Records: IRS, FLSA, and Legal Rules Business Owners Should Know

Keep payroll records and pay stubs organized to meet IRS, FLSA, and legal requirements for audits, claims, or disputes. Storing records digitally reduces space use and keeps documents available beyond the required minimum retention periods.

California Mileage Rate 2025: IRS Figure, Reimbursement Policy, and Employer Instructions

California Labor Code Section 2802: Employer Reimbursement Rules for Work Expenses

California employers must reimburse workers for necessary expenses like phones, internet, mileage, and home office equipment. Employees can recover unpaid reimbursements through Labor Commissioner claims or class action lawsuits against violating employers.

Double Time California: When Employers Are Required to Pay Twice the Regular Hourly Rate and How It Is Calculated

California employers must pay double-time wages in situations like 12-hour shifts or working seven days without a break. This article covers who qualifies, common payroll mistakes, and how double-time compensation should be figured under California law.

Tip Pooling Rules in Every State: What Restaurant Owners Must Know

Tip pooling laws vary by state, affecting how restaurants manage tips and comply with federal and local wage rules. Restaurant owners are required to follow guidelines to avoid fines, lawsuits, and disputes over tip distribution and service charges.

How Long Does an Employer Have to Pay You After Payday in California: Legal Timeframes, Rules, and Consequences

Employers in California must pay wages on time or face fines, including back pay and waiting time penalties for delayed checks. Employees may pursue compensation for late or missing pay through legal claims tied to payroll violations under state labor law.

CA Exempt Employee Classification: Definitions, Exemptions, and Legal Exposure for Employers

Employers risk lawsuits and large settlements when CA workers are misclassified under state exemption rules. Roles must be reviewed regularly to match duties.

How to Get a Job at 14: Simple Steps for Teens Who Want to Start Working

Many teens can get jobs at 14 with the right documents, clear goals, and a simple but effective resume. This article explains rules, permits, applications, interviews, and ways to stay focused during your first job search.

How Many Hours Can a 17-Year-Old Work in California During School? Labor Rules You Should Know

California limits how many hours 17-year-olds can work during school to protect their safety, education, and wages. Know the labor rules that apply to minors and what families should do if employers violate state employment laws.

AB 1228 Summary: California Fast Food Law on Wages, Council Authority, and Business Impact

California's AB 1228 law sets a $20 hourly wage for fast food workers and forms a state-level Fast Food Council. It changes employment rules, impacts exempt pay requirements, and raises business cost issues for restaurants and their customers.

Can a 13 Year Old Work? 14 Real Ways for Young Teens to Earn Money Safely

A 13-year-old can safely earn money through creative, age-appropriate jobs like babysitting, pet care, or blogging. This guide lists 14 proven options that balance responsibility, fun, and parental supervision.

Severance Pay California: What It Includes and How to Change the Terms

California severance pay is not legally required, but agreements often include pay, benefits, and legal waivers. Employees can negotiate terms, challenge clauses, and improve severance offers with legal or personal review.

Employment Litigation: Key Issues in Job Termination, Discrimination, and Harassment Cases

Employees may sue for job termination, discrimination, or harassment when workplace actions violate federal or state employment rules. This article explains legal protections, common violations, and employee rights involved in workplace-related lawsuits.

Company Morale: 20 Practical Ways to Improve Workplace Culture and Engagement

Improve company morale with 20 practical tactics that strengthen workplace culture, boost motivation, and support everyday team interaction. Encourage positivity, increase retention, and support employee satisfaction through real-world practices designed for today's professional environment.

California Mileage Reimbursement 2025: Rate Details, Methods, and Employer Duties

California employers must reimburse staff for business-related vehicle use based on mileage rates or alternative approved methods. The 2025 policy outlines IRS rates, covered expenses, and mandatory employer responsibilities under California labor law.

Temporary Disability California: Workers’ Compensation Coverage, Benefit Limits, and Qualifying Conditions

Temporary disability in California pays part of your wages after a workplace injury confirmed by an approved medical provider. Eligibility, time limits, and payment amounts depend on work status, legal codes, employer options, and medical updates.

Legal Age to Work in 2025: Employment Limits for Minors

State and federal laws set age, hour, and job restrictions for minors working in 2025 to protect their safety. Review employment limits for children across all fifty states, including agricultural rules, certificates, and non-hazardous job requirements.

Abusive Conduct Under California Law: Definition, Workplace Examples, and Employer Obligations

Abusive conduct in California workplaces includes bullying, hostile language, and exclusion that disrupts an employee's job performance. Employers must provide harassment prevention training and meet legal obligations under FEHA and Senate Bill No. 778.

Minimum Wage in San Diego 2025: Updated City and County Pay Rates for Employers

Minimum wage in San Diego City is $17.25 per hour in 2025, while the county rate remains $16.50. Employers must comply with state, city, and county wage laws or face penalties for underpayment and related violations.

California Labor Law: 2025 Employer & Employee Guide to Wages, Breaks, Leave, and Rights

California’s 2025 labor laws address wages, breaks, overtime, workplace safety, discrimination, sick leave, and employee protections. This guide outlines rules on scheduling, payroll, final paychecks, paid sick time, and employment standards for minors.

California Final Paycheck Law: Payment Timelines, Legal Rules, and Employer Responsibilities

California employers must follow exact final paycheck rules when employees quit or are fired, or risk paying penalty wages. The article covers payment timing, employer duties, and industry-specific exceptions including film, oil drilling, and agriculture.

Can You Work at 14 in California? Laws, Restrictions, and Permits for 14- and 15-Year-Olds

Minors aged 14 can work in California, but strict federal and state labor laws limit hours, industries, and duties. Work permits are mandatory for 14- and 15-year-olds, and employment is subject to revocation if conditions are violated.

How Many Hours Is a 9-5 Job? Daily, Weekly, Monthly, and Yearly Breakdown

A 9–5 job typically means eight hours daily, totaling 40 hours weekly across five standard workdays. Monthly and yearly hours vary depending on vacations, with most averaging 160 monthly and 2,000 annually.

Exempt Employee California: 2025 Rules, Salary Thresholds & Classification Tests Explained

California's 2025 exempt employee rules include new salary thresholds for fast food and healthcare workers under state wage laws. Detailed tests determine exemption status based on duties, salary structure, and consistent application of independent judgment.

Fair Chance Employers: A 2025 Guide to Compliant and Inclusive Hiring Practices

Fair chance hiring promotes compliance with evolving state and federal laws that support inclusive recruitment for applicants with records. Employers must assess convictions individually, follow proper procedures, and align background checks with job relevance and legal standards.

PAGA Claims in California: How Workers Can File and What Penalties Employers Face

Employees in California can file PAGA claims for labor violations and recover civil penalties on behalf of the state. Penalties vary by infraction, and employers may reduce liability if violations are corrected within the allowed timeframe.

How Many Hours Can a 16 Year Old Work? A Complete Guide to U.S. Child Labor Laws

Federal law sets no limit on work hours for 16-year-olds, but many states impose restrictions and nighttime limits. This guide breaks down FLSA rules, state variations, job types, and penalties for violating child labor laws.

New Hire Forms Checklist: Required Documents & Onboarding Essentials for Employers

Manage new hire onboarding smoothly using this checklist of required federal, state, and internal employment documents. Meet compliance needs and simplify hiring by collecting tax forms, offer letters, benefits paperwork, and signed policy acknowledgments.

Comp Day Explained: Eligibility, Benefits, and How to Calculate It Correctly

Comp day lets eligible employees take time off instead of receiving overtime pay, offering flexibility in work schedules. This article explains how comp time is calculated, who qualifies, and the differences between comp time and overtime rules.

Work Permit California: Requirements, Age Limits, and Job Restrictions for Minors

Minors in California need a work permit to get jobs, with specific restrictions based on age, role, and school status. This article outlines age requirements, job limitations, working hours, and exceptions to the state’s work permit rules for minors.

See all blogs: Business | Corporate | Employment

California Mileage Rate 2025: IRS Figure, Reimbursement Policy, and Employer Instructions

Introduction

Section 2802 of the California Law and Labor Code

Regulations for the California mileage rate in 2025

California mileage rate in 2025

How California employees are compensated for business miles

How can I maintain a mileage record that complies with California law?

FAQs

Free Consultation