Per Diem for Business Travel — 2026
In plain words: how much you can deduct for meals and lodging on a business trip using GSA rates — without a pile of receipts.
TL;DR
What per diem is
Per diem is a set of fixed daily allowances the US government (GSA) publishes for business travel. They let you deduct meals and lodging at a standard rate instead of keeping a receipt for every cup of coffee.
Standard rate for fiscal year 2026
| Lodging (per night) | $110 |
| Meals & incidentals (M&IE), per day | $68 |
| Total per day | $178 |
In effect Oct 1, 2025 – Sep 30, 2026. High-cost cities (New York, San Francisco, etc.) are higher — look up the exact rate in the official GSA tool.
Important for the self-employed and freelancers
If you work for yourself (Schedule C), the per diem method applies to meals (M&IE) only — lodging must be deducted with actual receipts. The meal rate can be taken with no receipts. Employees reimbursed by an employer can use both rates.
What the $68 meal rate is made of
| Meal | $ |
|---|---|
| Breakfast | $16 |
| Lunch | $19 |
| Dinner | $28 |
| Incidentals | $5 |
Other things worth knowing
- •On the first and last day of a trip you take 75% of the meal rate — $51 instead of $68 at the standard tier.
- •Business meals are 50% deductible — a general rule that also applies to the meal per diem.
- •Per diem only works for travel away from your tax home that requires an overnight stay.
This is a simplified explanation for planning, not tax advice. Per diem rules have nuances — check for your situation.
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About per diem and travel deductions