The IRS has announced that the per diem rates for travel and business expenses will increase starting October 1, as outlined in Notice 2026-60. The per diem substantiation method allows employers to reimburse employees for lodging, meals, and incidental expenses using a daily allowance instead of reimbursing actual expenses.
Key Details:
- New Rates:
- High-Cost Localities: $329 (up from $319)
- Non-High-Cost Localities: $230 (up from $225)
- The meals portion remains $86 for high-cost locations and $74 for others.
- High-cost localities are defined as those with a federal per diem rate of $280 or more.
Transportation Industry Special Rates:
- Meals and Incidental Expenses (M&IE) remain $80 for travel within CONUS and $86 outside CONUS.
- Incidental expenses remain at $5 per day.
For more information on the new rates and compliance, please refer to Rev. Proc. 2019-48.
For comments or article suggestions, you can contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.
