Per diem rates are raised by the IRS.

man holding a boardingpass, passport and luggage at an airport

Per diem rates are raised by the IRS.

The daily per diem rate for business travel to less expensive locations is $204 per day. $297 will be the highest rate.

The per diem rates will rise as of October 1, 2021, according to the Internal Revenue Service. The daily per diem rate for lower-cost business travel locations will be $204. The maximum rate is $297. The new rates will be in effect from October 1, 2022, to September 30, 2023.

Employees can be given per diem reimbursement instead of tracking specific expenses for lodging, meals, and ordinary incidental business expenses when they travel. The per diem allowances can then be claimed as business expenses on tax returns. Given that some regions of the United States have higher costs, per diem rates may change depending on the location of the trip. This method of high-low substantiation allows for more affordable rates.

Per diem rules further limit how much of the daily allowance can be used for meals. That amount is $64 per day for low-cost travel destinations and $74 per day for higher-cost locations. Allowable rates for meals and incidental expenses in the transportation industry are $69 per day in the United States and $74 in other countries.

The list of which cities and regions fall under the categories of high-cost or low-cost is updated on a regular basis and is available here.

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