Does Montana require an employer to reimburse mileage?
Yes, as an indemnity duty. Montana Code §39-2-701 requires the employer to cover what the employee necessarily expends or loses in direct consequence of the job.
Montana statute guide
Montana Mileage Reimbursement Law
Montana obliges an employer to indemnify the expense the job caused, and publishes a tiered rate for its own travelers.
Guide by MileagePilotUpdated Oct 19, 2026
Short answer
Montana Code §39-2-701 requires an employer to indemnify an employee for everything the employee necessarily expends or loses as a direct result of the job, or of following the employer's directions. Mileage you had to drive for work is that kind of expense, and the statute names no rate and no claim window, so the amount is what the travel actually cost. What Montana pays its own travelers is a separate schedule, and it does not set that amount.
At a glance
- Montana Code §39-2-701 is an indemnification duty: the employer covers what the job made you spend or lose.
- The statute sets no cents-per-mile rate, so a rate is a method, not the obligation itself.
- It also sets no claim window, which makes your employer's written policy the practical deadline.
- Two exceptions narrow the duty: ordinary risks of the business, and losses from a co-worker's negligence unless the employer was careless in hiring.
- Montana's agency schedule for its own travelers splits at 1,000 miles a month and requires preapproval before you drive.
The indemnification duty and its two exceptions
§39-2-701 makes the employer cover what an employee necessarily expends or loses in direct consequence of the job, or of obeying the employer's directions. Unlike a rate rule, it starts from your actual cost.
Subsection (2) withholds indemnity for losses that are ordinary risks of the business. Subsection (3) restores it in full where the loss came from the employer's own want of ordinary care. Read together, they ask what the expense was for, not which rate table applies.
| Question | What Montana answers |
|---|---|
| Who owes | The employer, for what the job made you necessarily expend — MCA §39-2-701 |
| How much | The expense itself. The statute names no rate |
| When it is due | No statutory window; the employer's written policy sets the practical deadline |
| What narrows it | Ordinary risks of the business, and a co-worker's negligence absent careless hiring |
Montana asks what the expense was for, not which rate applies.
Building a Montana claim with no statutory deadline
- Log the trip, the business purpose, and the direction or authorization that made it necessary.
- Keep what the travel cost you, since §39-2-701 measures the expense rather than a rate.
- Submit it on your employer's policy timeline, because Montana sets no window of its own.
- If the employer refuses, ask which exception it is relying on: an ordinary risk, or your own decision to drive.
Montana's own travel rate
The Montana Department of Administration publishes these figures. State employees whose department approves a private vehicle for state travel.
The schedule's design is unusual: a high rate for the first 1,000 miles in a month, a lower rate beyond that, and a standard rate with no monthly limit. Personal vehicle use needs the department director's approval before the trip.
Montana's rate schedule binds state agencies. A private employer's obligation still comes from §39-2-701, so a rate schedule is useful as a benchmark and as evidence of what the travel cost, not as the ceiling on what is owed.
| Applies to | Amount |
|---|---|
| Standard rate, no monthly limit | 34.9 cents per mile |
| High rate, first 1,000 miles in a month | 72.5 cents per mile |
| Low rate, beyond 1,000 miles in a month | 69.5 cents per mile |
Source: Montana DOA: state employee travel information.
The 2026 federal business rate
The IRS moved the business standard mileage rate mid-year, so a 2026 trip prices by its date. This is the benchmark an employer's rate method usually follows.
| Period | Federal business rate | What it means for a claim here |
|---|---|---|
| January 1 – June 30, 2026 | 72.5 cents per mile | Montana's agency high rate for the first 1,000 miles a month sat at this figure, and the federal benchmark is what an employer's rate method usually adopts. |
| July 1 – December 31, 2026 | 76 cents per mile | The mid-year increase moved the benchmark, not the indemnity duty in §39-2-701, which still measures your actual expense. |
Both 2026 federal periods, and how each one reaches this state.
Official references
Montana Code Annotated 39-2-701 — Indemnification of employee
The indemnity duty, its ordinary-risk exception and the employer's own-care rule.
Montana Department of Administration: employee travel
The published travel summary and the personal vehicle use authorization form.
IRS Notice 2026-10 (Jan 1-Jun 30)
The announcement that set the federal business rate for that period.
IRS Announcement 2026-11 (Jul 1-Dec 31)
The announcement that set the federal business rate for that period.
Common questions
What rate does Montana set for business mileage?
The statute sets no rate. The Department of Administration publishes rates for state travelers, and a private employer's obligation under §39-2-701 is measured by the expense rather than by that schedule.
How long do I have to submit a Montana mileage claim?
Montana sets no statutory window, so your employer's written policy sets the practical deadline. Submit on that timeline and keep proof of when you did.
Do I split 2026 mileage at July 1 in Montana?
Only if the rate you are paid follows the federal figure: trips through June 30, 2026 price at 72.5 cents per mile and trips from July 1 at 76 cents per mile. A rate the employer sets on its own applies to the whole year, and a statutory duty is owed either way.
Continue with tools
Calculate estimated reimbursement, review official rate tables, or download log templates.