IRS Releases FY 2027 Per Diem Rates for Employee Business Travel
The IRS announced new per diem rates for fiscal year 2027, effective Oct. 1, 2026.
As a reminder, using the per diem method can reduce receipt-keeping, but employees still must substantiate the time, place and business purpose of their travel. The rates apply to per diem allowances paid to employees on or after Oct. 1, 2026, for business travel away from home on or after that date.
Some Per Diem Rates Hold Steady, High-Low Rates Rise
Reviewing the rates in Notice 2026-60, the IRS said the special meals and incidental expenses rates for the transportation industry remain:
- $80 per day for travel to any locality in the continental United States (CONUS), and
- $86 per day for travel to any locality outside CONUS.
Next, the incidental-expenses-only deduction remains at $5 per day.
Lastly, the rates employers will need if they use the high-low substantiation method are:
- $329 for travel to any high-cost locality ($86 of which is for meals), and
- $230 for travel to any other locality within CONUS (with $74 of that going to meals).
The IRS also updated the list of high-cost localities used with the high-low method.
More info: Notice 2026-60.
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