IRS releases 2027 per diem rates for travel expense reimbursements
Posted by DaveMoll on Sep. 29, 2026 / Subscribe 0
The IRS has released the 2026-2027 special per diem rates. Taxpayers use the per diem rates to substantiate certain expenses incurred while traveling away from home. These special per diem rates include:
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(1) |
the special transportation industry meal and incidental expenses (M&IE) rates, |
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(2) |
the rate for the incidental expenses only deduction, |
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(3) |
and the rates and list of high-cost localities for purposes of the high-low substantiation method. |
Transportation industry special per diem rates. The special M&IE rates for taxpayers in the transportation industry are:
- $80 for any locality of travel in the continental United States (CONUS), and
- $86 for any locality of travel outside the continental United States (OCONUS).
Incidental expenses only rate. The rate is $5 per day for any CONUS or OCONUS travel for the incidental expenses only deduction.
High-low substantiation method. For purposes of the high-low substantiation method, the 2026-2027 special per diem rates are:
- $329 for travel to any high-cost locality, and
- $230 for travel to any other locality within CONUS.
The amount treated as paid for meals is:
- $86 for travel to any high-cost locality, and
- $74 for travel to any other locality within CONUS
Instead of the meal and incidental expenses only substantiation method, taxpayers may use:
- $86 for travel to any high-cost locality, and
- $74 for travel to any other locality within CONUS.
Taxpayers using the high-low method must comply with Rev. Proc. 2019-48, I.R.B. 2019-51, 1390. That procedure provides the rules for using a per diem rate to substantiate the amount of ordinary and necessary business expenses paid or incurred while traveling away from home.
Notice 2025-54, I.R.B. 2025-41, 479 is superseded.
SOURCE:Notice 2026-60, I.R.B. :2026-43, October 19, 2026.
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