IRS Increases Per-Diem Rates for Business Travel

Stephen Fishman
Tax expert and contributor MileIQ

Employees who travel out-of-town for business typically have their expenses reimbursed by their employer. If properly documented, such reimbursements are tax-free to the employee.        

Employees can keep track of all their actual expenses while traveling and submit a detailed expense report to their employer for reimbursement. However, this requires a lot of record keeping.    

There is a less time-consuming alternative: using a standard per diem allowance to cover meals, lodging, and incidental expenses. These rates are based on the per diem rates the federal government pays its workers while traveling. You can find them at (look for the link to "Per Diem Rates").

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

The rates vary from locality to locality. However, to make things even simpler, employers can use an optional "high-low method." With this method, there is one uniform per-diem rate for all "high-cost" areas within the continental United States and another rate for all other areas. These rates are adjusted for inflation each year.    

Starting October 1, 2016, the high-cost-area per diem rate is $282 (up from $275)–this includes $214 for lodging and $68 for meals and incidental expenses. The per-diem rate for all other areas is $189 (up from $185), consisting of $132 for lodging and $57 for meals and incidental expenses. (Notice 2015-63, Sec. 5 ; Notice 2016-58, Sec. 5 )    

This is related to employee rates. As we've previously discussed, self-employed individuals can deduct many of their business travel expenses.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

How have you been tracking your miles?

Start tracking drives automatically with MileIQ!
Get Started