IRS Per Diem Rates for 2026: What Changed

September 29, 2025

For 2026, the IRS and GSA chose not to raise or lower per diem amounts. The standard rates from 2025 will continue to apply across the continental United States.

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Standard CONUS$166/day

Lodging / M&IE$107 / $59

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Each year, the General Services Administration (GSA) and the Internal Revenue Service (IRS) release updated federal per diem rates for business travel. For 2026, the agencies have announced that per diem rates will remain the same as 2025. This means employers, employees, and government contractors will see no adjustments in daily lodging and meal allowances when traveling for work within the continental United States (CONUS).

While many expected minor increases to match inflation, the decision to keep 2025’s rates provides consistency and predictability for budgets heading into the new year. For organizations that rely on per diem guidelines to control travel expenses, this stability can make financial planning easier.

2026 Standard CONUS Per Diem Rate

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2026 IRS Per Diem Rate Table Category 2025 Rate 2026 Rate Change Standard CONUS Total $166 $166 No change Lodging Component $107 $107 No change Meals and Incidental Expenses (M&IE) $59 $59 No change

High-Cost Areas in 2026

As in previous years, certain destinations still qualify for higher per diem allowances due to elevated lodging costs. These high-cost areas are listed by the GSA in their annual publication. While the standard CONUS rate stays the same, travelers visiting high-cost markets should review the GSA’s updated list to confirm the specific daily maximums.

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ItemAmount High-cost locality per diem (lodging + M&IE)$319 Other localities per diem (lodging + M&IE)$225 M&IE portion of high-cost rate$86 M&IE portion of other-locality rate$74 Transportation industry M&IE$80 CONUS, $86 OCONUS Incidental expenses only$5 per day Effective periodOct 1, 2025 to Sep 30, 2026 These amounts are unchanged from 2025.

Why the Rates Didn’t Change

The decision to maintain 2025 levels reflects the government’s analysis of travel cost data. With inflation pressures easing compared to prior years, the agencies determined that existing rates remain sufficient for typical travel needs.

For employers, this removes uncertainty around fluctuating reimbursement policies. For employees, it may mean tighter budgets in markets where hotel and meal prices continue to rise.

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M&IE total75% amount $68$51.00 $74$55.50 $80$60.00 $86$64.50 $92$69.00 Applies to the duty location’s M&IE tier on departure and return days.

How Per Diem Works

To recap, per diem is a daily allowance employers use to cover lodging, meals, and incidental expenses for employees traveling on official business. Instead of tracking every receipt, employers can rely on IRS-approved per diem amounts to streamline expense reporting and reimbursement.

Lodging: Hotel costs per night

Meals and Incidentals (M&IE): Daily allowance for meals, tips, and minor expenses

CONUS vs. OCONUS: Rates differ for travel inside the continental U.S. versus overseas or non-continental territories

What This Means for Employers and Travelers

Employers benefit from consistent budgeting and reimbursement policies year over year.

Employees may need to plan carefully in higher-cost destinations where per diem limits may not fully cover real-world expenses.

Government contractors continue to use per diem as the benchmark for lodging compliance and expense reporting.

Frequently Asked Questions Regarding Per Diem & the IRS

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Did any city specific rates change for 2026? No. The government maintained 2025 levels for 2026. If you are traveling to a high cost locality, verify the current listing before you book.

What is the standard CONUS rate for 2026? $166 per day total, with $107 for lodging and $59 for meals and incidentals.

Do these rates apply outside the continental United States? No. OCONUS and international travel use separate rate systems maintained by the Department of Defense and the Department of State.

What is the IRS high low method and are the amounts unchanged? The IRS high low method provides fixed per diem amounts for tax substantiation. High cost is $319 and other localities are $225. M&IE portions are $86 and $74. These amounts are unchanged for the 2026 period.

How do I handle the first and last day of travel? Use 75 percent of the destination’s M&IE for departure and return days. For example, 75 percent of $68 is $51.00 and 75 percent of $74 is $55.50.

How do I reduce M&IE when a meal is provided? Subtract the meal’s allowance from the daily M&IE. Use the official meal splits for the applicable tier. For instance, at $68 M&IE the breakfast value is $16, lunch is $19, dinner is $28 and incidentals are $5.

What counts as incidental expenses? Small fees and tips such as those to baggage handlers or hotel staff. The incidental only rate is $5 per day.

Are lodging taxes covered inside the lodging per diem? For federal travelers, lodging taxes are typically reimbursed separately from the lodging cap. For private employers using per diem, follow the company policy on taxes and fees.

Can I shift unused lodging per diem to meals or the other way around? No. Lodging and M&IE are separate. You cannot reallocate unused amounts between categories.

Which rate applies if I stay in more than one city on the same day? Use the rate associated with the location where you lodge for the night. If you change cities, the rate changes when your lodging location changes.

Are day trips eligible for per diem M&IE? For federal rules, per diem generally requires overnight travel. For private employers, meal reimbursements without an overnight stay are typically taxable wages unless your policy specifies otherwise.

What documentation is required under an accountable plan? Time, place and business purpose of the travel must be substantiated. Excess or duplicate payments are taxable compensation.

Can we pay above the federal or IRS per diem? Yes, but any amount above the applicable IRS special rate is generally taxable to the employee unless supported under actual expense rules.

When can agencies or employers use actual expense reimbursement? Federal agencies may authorize actual expense reimbursement when necessary. Private employers can use actuals if their policy allows, subject to tax rules.

What are the transportation industry M&IE rates? $80 for CONUS and $86 for OCONUS. These amounts are unchanged for the 2026 period.

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Sources and References

Last checked: September 29, 2025

GSA Per Diem Rates (CONUS)

Official federal per diem lookup for continental U.S. travel.

https://www.gsa.gov/travel/plan-book/per-diem-rates Official CopyCopied

GSA M&IE Breakdown

Meal-by-meal allowances and first or last day 75 percent rule.

https://www.gsa.gov/travel/plan-book/per-diem-rates/mie-breakdown Official CopyCopied

IRS Special Per Diem Rates Notice (High–Low)

Annual notice with high-cost, other-locality and transportation M&IE amounts.

https://www.irs.gov/ Official CopyCopied

DoD DTMO Per Diem (OCONUS)

Overseas and non-CONUS per diem lookup maintained by DoD.

https://www.defensetravel.dod.mil/site/perdiem.cfm Official CopyCopied

U.S. State Department Per Diem (Foreign)

Foreign per diem rates for international destinations.

https://aoprals.state.gov/web920/per_diem.asp Official CopyCopied

Rev. Proc. 2019-48

Accountable plan rules and tax treatment for per diem reimbursements.

https://www.irs.gov/pub/irs-drop/rp-19-48.pdf Official CopyCopied