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Kateryna Dzhevaga·IRS CAA · Authorized IRS e-file Provider·Federal practice (all 50 states)·EN · RU · UK
Travel & deductions

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

The FY2026 standard rate is $178/day: $110 lodging + $68 meals (M&IE). The self-employed may use per diem for meals only — lodging must be actual receipts. Meal per diem is 50% deductible.
📅 Updated: 2026

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.
Exact city rates on the GSA site

This is a simplified explanation for planning, not tax advice. Per diem rules have nuances — check for your situation.

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FAQ

About per diem and travel deductions

For meals — no: the M&IE rate is taken without receipts (but you must still document the trip and its business purpose). For lodging, the self-employed need receipts.