Does South Dakota require an employer to reimburse mileage?
Yes, as an indemnity duty. SDCL §60-2-1 requires an employer to cover all that an employee necessarily expends or loses in direct consequence of the job.
South Dakota statute guide
South Dakota Mileage Reimbursement Law
South Dakota requires an employer to indemnify work expenses, and runs its own travel rate on an October-to-September year.
Guide by MileagePilotUpdated Oct 19, 2026
Short answer
South Dakota Codified Laws §60-2-1 requires an employer to indemnify an employee for all that the employee necessarily expends or loses in direct consequence of the job, or of obeying the employer's directions. Driving a job required is that kind of expense, and the statute sets no rate and no claim window. The state's own travel schedule runs on a different calendar from the federal one, which is why a South Dakota rate question cannot be answered by the federal half-year split alone.
At a glance
- SDCL §60-2-1 is the duty: the employer indemnifies what the job made you necessarily expend or lose.
- §60-2-2 withholds indemnity for ordinary risks of the business and for a co-worker's negligence absent careless hiring.
- South Dakota sets no rate and no claim window for private employers, so a written policy carries both.
- The state's own rate year runs October 1 to September 30, not January to December.
- State travelers are paid less when a motor pool vehicle was available to them, which is a rule about state fleet use rather than about your employer.
What SDCL §60-2-1 requires
The section makes an employer cover what an employee necessarily expends or loses in direct consequence of the job, or of obeying the employer's directions, even where those directions were unlawful and the employee did not know it.
§60-2-2 carves out the ordinary risks of the business and the negligence of a fellow employee, unless the employer was careless in choosing that employee. §60-2-3 restores the duty in full where the loss came from the employer's own want of ordinary care.
| Question | What South Dakota answers |
|---|---|
| Who owes | The employer, for what the job made you necessarily expend — SDCL §60-2-1 |
| How much | The expense. The state names no rate for private employers |
| When it is due | No statutory window; a written policy sets the deadline |
| What narrows it | Ordinary risks of the business, and a co-worker's negligence absent careless hiring |
South Dakota measures the expense the job caused, not a rate.
Submitting a South Dakota claim
- Log the trip, the business purpose, and the direction that made the travel necessary.
- Date the mileage, because a rate that changes on October 1 makes the trip date decide the figure.
- Submit on the timeline the employer's written policy sets, since the statute sets none.
- If the claim is refused, ask which exception applies: an ordinary risk, or a fellow employee's negligence.
South Dakota's own travel rate
The South Dakota Bureau of Finance and Management publishes these figures. State employees traveling in a personal vehicle. The lower figure applies where a motor pool vehicle was available.
South Dakota's rate year takes effect on October 1 rather than January 1, so a trip's date decides which figure applies.
The lowest figure applies when a state motor pool vehicle was available and the traveler used a personal vehicle anyway. That is a rule about the state's own fleet, and it does not describe what a private employer owes.
| Applies to | Amount |
|---|---|
| October 1, 2025 – September 30, 2026 | $0.70 per mile |
| From October 1, 2026 | $0.76 per mile |
| When a state motor pool vehicle was available | $0.35 per mile |
Source: South Dakota BFM travel reimbursement rates.
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 | The federal figure is the usual benchmark for an employer's rate method, and it is not the schedule South Dakota pays its own travelers. |
| July 1 – December 31, 2026 | 76 cents per mile | The mid-year federal increase and South Dakota's October 1 change are separate events; a trip's date decides which state figure applies. |
Both 2026 federal periods, and how each one reaches this state.
Official references
SDCL 60-2-1 to 60-2-3 — indemnification of employees
The indemnity duty, the ordinary-risk exception, and the employer's own-care rule.
South Dakota BFM travel reimbursement rates
The personal vehicle rate in force and its October 1 effective date.
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
When does South Dakota change its mileage rate?
On October 1, not January 1. The state paid $0.70 a mile through September 30, 2026 and pays $0.76 from October 1, 2026.
What is the mileage rate for private employers in South Dakota?
There is none. The statute requires the expense and names no rate, so the figure comes from the employer's method, usually benchmarked to the federal rate.
Do I split 2026 mileage at July 1 in South Dakota?
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.