Does Ohio require a private employer to reimburse mileage?
No. OAC 126-1-02 covers state agencies, and Ohio has no private-employer mileage rate, so a private claim pays what the employer's written policy says.
Ohio's rule lets the budget director set a state mileage rate between 45 cents and the IRS figure, and the published rate has stayed at 58 cents.
Ohio's state mileage rate comes from an administrative rule rather than a statute. Ohio Administrative Code 126-1-02 authorizes reimbursement up to the IRS business standard mileage rate and forbids a figure below 45 cents a mile. It leaves the number to the director of the Ohio Office of Budget and Management, who reviews it at least once a year. The published rate has been 58 cents a mile since July 1, 2025 and did not change at the July 1, 2026 review, which puts state agencies 14.5 to 18 cents below the federal 72.5 and 76 cents. The rule binds state agencies. Ohio imposes no mileage rate on a private employer, so its written policy decides.
The rule does not name an amount. It gives the budget director a range, no lower than 45 cents a mile and no higher than the IRS business standard rate, and requires a review at least once a year. Whatever the director publishes inside that range is what state agencies pay.
Because the federal figure is only a ceiling, Ohio can publish 58 cents and still comply with its own rule.
| What the rule sets | Figure |
|---|---|
| Ceiling | The IRS business standard mileage rate |
| Floor | 45 cents a mile, unless the IRS rate falls below it |
| Review | At least once a year, by the budget director |
| Who can claim | One state agent per vehicle |
| Bargaining | A collective bargaining agreement can set a different amount |
Ohio Administrative Code 126-1-02, effective November 13, 2025.
Ohio paid 58 cents a mile at every point in 2026. The October 1, 2025 review kept that figure, and the July 1, 2026 review kept it again. Against the federal 72.5 cents in the first half and 76 in the second, the state rate ran 14.5 and 18 cents lower.
The rule allows up to the federal figure; the published rate stayed at 58 cents through both reviews.
Ohio's rule also calculates a commute, and that calculation matters as much as the rate. The state does not reimburse mileage between home and the assigned work location, and it pays a trip to a different location only for the distance from home to that location minus the normal commute.
Ohio Administrative Code 126-1-02 defines a state agency and a state agent, and a private employer is neither. Ohio sets no mileage rate for private employment, so a private claim pays what the employer's written policy says, and the figure most policies adopt is the federal business rate. That rate is 72.5 cents per mile through June 30, 2026 and 76 cents per mile from July 1.
Ohio's 58 cents also shows what the state decided a business mile is worth for its own travelers. A private policy that pays less than that chooses to.
The Ohio Office of Budget and Management publishes these figures. State agencies reimbursing a state agent who drives a privately owned vehicle on official state business. It does not reach a private employer.
The rule took effect on November 13, 2025 and still sets a range rather than an amount. The published figure is the operative one, and the office dates a memo at each review.
Nothing in the rule requires the figure to follow the federal rate, so the gap between 58 cents and the federal amount is a policy choice rather than a missed update. A private employer is outside the rule entirely.
| Applies to | Amount |
|---|---|
| Per business mile, since July 1, 2025 | $0.58 |
| Floor set by rule 126-1-02 | 45 cents per mile |
| Ceiling set by rule 126-1-02 | The IRS business rate: 72.5 cents per mile Jan–Jun 2026, 76 cents per mile from Jul 1 |
Source: OBM mileage rate memo for fiscal year 2027.
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 | Ohio's rule allows up to this rate, but the figure the director published for the first half of 2026 was 58 cents. |
| July 1 – December 31, 2026 | 76 cents per mile | The federal rate rose to 76 cents per mile on July 1, and Ohio's annual review kept its own figure at 58. |
Both 2026 federal periods, and how each one reaches this state.
The IRS has not published a standard mileage rate for 2027. Until it does, two things decide what a trip pays: the year you drove it and the date within that year. A 2026 trip pays 72.5 cents per mile through June 30 and 76 cents per mile from July 1. Miles driven from January 1, 2027 will use whatever figure the IRS publishes next.
The next year's rate has arrived in December in each of the last nine years, between December 14 and December 31. An announcement is not always the last word. The IRS raised the 2026 figure on July 1, halfway through the year, so a 2027 claim may need two rate periods.
A state that publishes a rate for its own travelers follows its own calendar, so it can publish the next period before the IRS does. A private employer's rate changes when its own policy changes, or when the benchmark that policy follows moves. It does not change because the calendar year turns.
The annual review that kept the state rate at $0.58 a mile from July 1, 2026.
The quarterly review that kept the rate at $0.58 a mile from October 1, 2025.
The 45-cent floor, the IRS-rate ceiling, the annual review, the one-claimant rule and the commute calculation.
The announcement that set the federal business rate for that period.
The announcement that set the federal business rate for that period.
No. OAC 126-1-02 covers state agencies, and Ohio has no private-employer mileage rate, so a private claim pays what the employer's written policy says.
58 cents a mile, unchanged at the October 1, 2025 and July 1, 2026 reviews. The rule allows up to the IRS business rate and no less than 45 cents.
Because rule 126-1-02 makes the federal figure a ceiling rather than a mandate. The director can publish any amount between 45 cents and the IRS rate, and has kept it at 58 cents.
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.
Explore official tax authority rate tables, compliance guides, and printable mileage log templates.