IRS raises business travel per diem rates

The IRS has increased the special per diem rates taxpayers can use to substantiate business travel expenses, effective Thursday, Oct. 1.

Under the high-low substantiation method, the daily rate for travel to high-cost locations within the continental U.S. will rise to $329 from $319, while the rate for other locations will increase to $230 from $225.

The portions treated as meal expenses will remain unchanged at $86 and $74, respectively. The IRS also revised its list of high-cost locations, defined as those with a federal per diem rate of at least $280, for the period through Sept. 30, 2027.

Transportation industry meal and incidental expense rates will remain at $80 for domestic travel and $86 for travel outside the continental U.S., while the incidental expense rate will stay at $5 per day. Read more.