Per diem rates for 2026 and 2027

Employers can use the high-low method instead of looking up every city. Self-employed people and truck drivers use the meal and incidental rates.

The General Services Administration sets the rate for each city. For federal fiscal year 2027 (October 1, 2026 to September 30, 2027) the standard rate for places without their own rate is $113 a night for lodging, up from $110, and $68 a day for meals and incidentals. 295 locations have higher rates, with meals and incidentals from $68 to $92 a day; look them up on GSA’s per diem page.

On the first and last day of a trip, the meals and incidentals amount is three-quarters of the daily rate.

If you are self-employed you can use the per diem for meals and incidentals instead of keeping every receipt, but not for lodging. Lodging is deducted at what you actually paid.

Most business meals are 50% deductible. Workers under Department of Transportation hours-of-service rules, such as interstate truck drivers, can deduct 80%. Example: an owner-operator spends 200 nights away from home in the continental U.S. at the $80 transportation rate: 200 × $80 = $16,000, and 80% of that is a $12,800 deduction. Days of departure and return count at three-quarters.

You still need records of when and where you traveled and why, such as logbooks or dispatch records.

When an employer pays a per diem at or below the federal rate under an accountable plan and the employee accounts for the dates, places and purpose of travel, the payment is not wages. Anything above the rate that is not returned is taxable pay.

Employees cannot deduct unreimbursed travel on their own federal return, except reservists, fee-basis government officials and certain performing artists.

For October through December 2026, transition rules in Rev. Proc. 2019-48 let employers choose between the old and new rates in some cases; check them before switching mid-year.