FY 2027

INFORMATIONAL CIRCULAR NO.:       27-A-001                    Supersedes: 26-A-010

DATE:                           June 29, 2026

SUBJECT:                   FY 2027 Private Vehicle Mileage Rates

EFFECTIVE DATE:     July 1, 2026

CONTACT ARPreaudit@ks.gov

APPROVAL:                Nancy Ruoff (original signature on file)

SUMMARY:                 FY 2027 Private Reimbursement Mileage Rates

The Internal Revenue Service (IRS) announced the standard mileage rates effective January 1, 2026. The IRS rate for privately owned automobiles increases to 72.5 cents per mile, the motorcycle rate increases to 70.5 cents per mile, the moving reimbursement rate remains 20.5 cents per mile, and the airplane reimbursement rate decreases to $1.78 per air mile.

K.S.A. 75-3203a provides that the mileage reimbursement rates shall not exceed the lowest of the following:

1. the rate allowed by the IRS;
2. the rate used in preparing the governor’s budget report under K.S.A. 75-3721, and amendments thereto; or
3. any revision of the rate as specifically directed in appropriation acts of the legislature.

Thus, per the requirements of K.S.A. 75-3203a, the Department of Administration has published the rates for mileage reimbursement for FY 2027, effective July 1, 2026:

• $0.725 per mile for privately owned automobile
• $0.705 per mile for privately owned motorcycle
• $1.78 per mile for privately owned airplane (based on air miles rather than highway miles)
• $0.205 per mile for moving mileage rate

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Printable Version

INFORMATIONAL CIRCULAR NO.:       27-A-002                    Supersedes: 26-A-003

DATE:                        June 29, 2026

SUBJECT:               FY 2027 Subsistence Allowances

EFFECTIVE DATE: July 1, 2026

CONTACT:               Statewide Agency Audit Services Team ARpreaudit@ks.gov

APPROVAL:            Nancy Ruoff (original signature on file)

SUMMARY:               FY 2027 Meals and Incidental Expense (M&IE) and Lodging       Rates for travel occurring on and after July 1, 2026

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2027. The GSA standard lodging rate remains $110.00. The standard M&IE rate remains $68.00.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used. The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occur on July 1, 2026, and thereafter:

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after July 1, 2026.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated as needed quarterly January 1, April 1, July 1 and October 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

First and Last Day Travel M&IE Allowance:

Reimbursement of the daily M&IE rate for the First and Last Day travel will be reduced to 75% of the applicable rate. Full days of travel with no other reductions will be reimbursed at 100% of the applicable rate.

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below. The daily M&IE reduction percentages are as follows:

Same Day Meal Allowance:

Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates. Historical locations and rates from each quarterly update will be maintained in SMART.

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Printable Version

INFORMATIONAL CIRCULAR NO.: 27-A-003         

DATE:                       June 29, 2026

SUBJECT:                 State Employee Travel Regulation Amendments

EFFECTIVE DATE:   July 1, 2026

CONTACT:                Statewide Internal Controls and Compliance OARControls_Compliance@ks.gov

APPROVAL:              Nancy Ruoff (original signature on file)

SUMMARY:                State Employee Travel Policy Updates

This Informational Circular is to announce that the below Sections of the Employee Travel Expense Reimbursement Handbook State Employees Travel Center | Kansas Department of Administration have been updated for fiscal year 2027 due to updates to Kansas Administrative Regulation Amendments  Kansas Administrative Regulations | Kansas SOS published on June 18, 2026.

Department of Administration, Travel Reimbursement Article Amendments:

• 1-16-6 Railroad accommodations

• 1-16-8 Use of privately owned or operated conveyance, limitations; reimbursement for transportation and subsistence expenses.

• 1-16-15 Reduced allowances.

• 1-16-18 Subsistence allowance.

Employee Travel Expense Reimbursement Handbook – Summary of changes:

• 4001 Reimbursable Subsistence Expenses – Employee may be reimbursed for one meal per day for official travel over 12 hours but less than 24 hours in which lodging expenses are not incurred or Same Day Travel.

• 4002 Non-Reimbursable Subsistence Expenses – Clarification to subsistence expenses

• 4100 Meals and Incidental Expense (M&IE) Reimbursement – The meal allowance for employees traveling on official state business for multiple days is 75% of the applicable rate on the day of departure and the last day of official state travel status.

• 4300 Meals and Incidental Expense – Calculating subsistence rates based on last official business location of the day.

• 4301 Reduced Meals and Incidental Expense (M&IE) Reimbursement for Meals Provided at No Cost to the Employee – Calculations or reductions of Meals when provided for employees on official state travel status.

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Printable Version

INFORMATIONAL CIRCULAR NO.: 27-A-004         

DATE:                       July 29, 2026

SUBJECT:                 New Policy Manual (PM) 3,923

EFFECTIVE DATE:   July 29, 2026

CONTACT:                Statewide Internal Controls and Compliance OARControls_Compliance@ks.gov

APPROVAL:              Nancy Ruoff (original signature on file)

SUMMARY:                Electronic Delivery of Tax Documents     

This Informational Circular is to announce new policy manual 3,923 Electronic Delivery of Tax Documents.

The Office of Accounts and Reports (OAR), in partnership with the Department of Administration Office of Information Technology (OITS), has formalized a statewide policy governing the electronic delivery of tax documents.

This policy establishes consistent requirements for the secure electronic distribution of tax documents and reinforces our commitment to protecting confidential employee information while ensuring compliance with applicable security standards and best practices.

Effective immediately, agencies should follow the requirements outlined in the new policy when electronically delivering covered tax documents.

Key topics addressed in the policy include:

• Approved methods for electronic delivery
• Security and encryption requirements
• Employee verification and consent requirements
• Agency responsibilities for safeguarding confidential tax information
• Audit and Record retention expectations

Agency payroll and HR staff responsible for distributing tax documents should review the policy and ensure their local procedures align with these requirements.

The complete policy and related guidance are available here: Policy Manual | Kansas Department of Administration

Printable Version

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INFORMATIONAL CIRCULAR NO.:       27-A-005                   

DATE:                        August 5, 2026

SUBJECT:               FY 2027 Private Vehicle Mileage Rates

EFFECTIVE DATE: July 1, 2026

CONTACT:               Statewide Agency Audit Services Team ARpreaudit@ks.gov

APPROVAL:            Nancy Ruoff (original signature on file)

SUMMARY:               State of Kansas requirements to IRS Mileage Rate Increases

In establishing private reimbursement mileage rates the state is bound by the statutory limits within K.S.A. 75-3203a (c) which states that the rates may be revised as conditions require, but shall not exceed the lowest of the following:

1. The rate allowed by the Internal Revenue Service (IRS);
2. the rate used in preparing the governor’s budget report under K.S.A 75-3721, and amendments thereto; or
3. any revision of the rate described in paragraph (2) as specifically directed in appropriation acts of the legislature.

The IRS established the federal standard mileage rate effective January 1, 2026, at 72.5 cents per mile, which was used in preparing the FY 2027 budget indices in the spring of 2026.

Most recently (July 13, 2026) the IRS announced the standard mileage rate increases to 76 cents per mile for July through December 2026, however, in order to comply with K.S.A. 75-3203a (c) the state rates are limited to the cost indices represented in the governor’s budget for FY 2027.

Effective July 1, 2026, the state rates are established as

• $0.725 per mile for privately owned automobile
• $0.705 per mile for privately owned motorcycle
• $1.78 per mile for privately owned airplane (based on air miles rather than highway miles)
• $0.205 per mile for moving mileage rate

The Department of Administration and the Division of Budget will be monitoring inflation, fuel prices, and IRS announcements in order to consider if any further adjustments may be available under K.S.A. 75-3203a.

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Printable Version

INFORMATIONAL CIRCULAR NO.:       27-A-006                    Supersedes: 27-A-002

DATE:                        October 1, 2026

SUBJECT:               FY 2027 Subsistence Allowances

EFFECTIVE DATE: October 1, 2026

CONTACT:               Statewide Agency Audit Services Team ARpreaudit@ks.gov

APPROVAL:            Nancy Ruoff (original signature on file)

SUMMARY:               FY 2027 Meals and Incidental Expense (M&IE) and Lodging       Rates for travel occurring on and after October 1, 2026

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2027. The U.S. General Services (GSA) has announced the CONUS standard rate for lodging and M&IE effective October 1, 2026.  The GSA standard lodging rate increases from $110.00 to $113.00. The standard M&IE rate remains $68.00.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used. The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occur on October 1, 2026, and thereafter:

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2026.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated as needed quarterly January 1, April 1, July 1 and October 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

First and Last Day Travel M&IE Allowance:

Reimbursement of the daily M&IE rate for the First and Last Day travel will be reduced to 75% of the applicable rate. Full days of travel with no other reductions will be reimbursed at 100% of the applicable rate.

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below. The daily M&IE reduction percentages are as follows:

Same Day Meal Allowance:

Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates. Historical locations and rates from each quarterly update will be maintained in SMART.

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Printable Version

Requirements to report payments where the 1099 data was not recorded in SMART:

Any payment occurring outside of the SMART system that is IRS reportable must be sent to the Office of Accounts and Reports (OAR) for the annual 1099 filing. These transactions include:

• Locally administered interest payments of $10.00 or more that are reported on Form 1099-INT.
  • Interest paid from trust funds to clients of institutions with either the Kansas Department for Aging and Disability Services or the Kansas Department of Corrections
• Non-employee awards not paid directly out of SMART regardless of the amount

How to report:

• To report non-SMART payments for form 1099, the agency must confirm the supplier is in the SMART supplier table with the appropriate 1099 type and class, and the agency must ensure that withholding is turned on for the supplier.
  • If the supplier is not in the supplier table, the agency must add the supplier to SMART including the appropriate 1099 type and class, and turn withholding on. The supplier must also be in approved status.
• Complete the Excel template “PS_WTHD_TRAN_TBL_update_template” (link included at the bottom of this circular) for all non-SMART 1099 reportable payments.
• Deadline to submit the completed template: January 8, 2027

The State of Kansas, like all entities, is required to file all applicable 1099s and mail the forms no later than January 31, 2027. The State of Kansas is charged a fee for each incorrect or omitted 1099 (regardless of the reason).

Agencies are responsible for ensuring the data provided to OAR is accurate and complete. Late filing penalties or penalties for incorrect filings will be passed on to the Agency submitting the information, and each Agency is responsible for providing the corrected information.

PS_WTHD_TRAN_TBL Update Template Instructions:

• Do not insert or delete columns or rows
• Do not change the formatting
• The fields in Yellow are required to be completed by the agency
• Begin with Line 2 (replace the sample data):
  1. Complete 1 line for each payment
  2. Add lines as needed for additional withholding types/classes
  3. Gray columns are default values and should not be changed
  4. If 499 lines are not sufficient, copy line 500 down
  5. When complete, attach the spreadsheet to a Kansas Service Desk ticket with the Subject line ‘Non-SMART 1099’

Note: In Excel, if there are leading zeros in a text field (e.g. Business Unit or Supplier ID), precede the value with an apostrophe to retain the zeros (‘04600 and ‘000123456)

Excel withholding template:

PS_WTHD_TRAN_TBL_update_template

Additional Resources:

Training guide for setting up suppliers for 1099 reporting and an account code guide:
1099 and Withholding Training Guide

IRS guide to each type of 1099, including instructions for each:
IRS Online Instructions for Forms

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