Per Diem Rates from the U.S. General Services Administration
Search by city, state or ZIP code, or by clicking on the map. You can also use the new per diem tool to calculate trip allowances
Rates are set by fiscal year, effective October 1 each year. Find current rates in the continental United States ("CONUS Rates").
Travel Expenses
Beginning January 1, 2018, under the Tax Cuts and Jobs Act, unreimbursed travel expenses and transportation costs for employees are no longer deductible, with the exception of the following three categories of employees:
- Armed Forces reservists who have reserves-related expenses for trips away from home of more than 100 miles to attend meetings or trainings.
- Fee-basis state or local government officials.
- Qualifying performing artists.
The above three categories of employees may claim unreimbursed travel expenses and transportation costs from 2018 through 2025 on Form 2106. Meals are 100% deductible for business trips away from home if provided at a restaurant. If not provided at a restaurant, the cost of meals is reduced 50% on Form 2106.
Unreimbursed expenses on Form 2106 is entered as an above-the-line deduction on Line 12 of Schedule 1 (Form 1040 or 1040-SR). This means, the deduction is allowed even if the standard deduction is claimed.
Note that the cost of of office-related events has not been banned. Also, business gifts to customers, clients, dealers, and employees are still deductible up to $25 per person per year. Don't count the cost of wrapping, insuring, engraving or shipping as part of the $25 limit.
Deductible Travel and Transportation Expenses
| Your Travel Status | Tax Rules That Apply to: (1) Self-employed (2) Armed Forces reservists who have reserves-related expenses for trips away from home of more than 100 miles to attend meetings or trainings (3) Fee-basis state or local government officials (4) Qualifying performing artists |
|---|---|
| Local business trips | You may deduct your transportation expenses but not the cost of personal meals on one-day business trips within the general area of your tax home |
| Overnight trips away from home | On business trips "away from home", the cost of travel between your home and business destination, such as meals, lodging and transportation at the destination are deductible. Meals are 100% deductible if provided at a restaurant, otherwise they're 50% deductible (80% for certain transportation workers). Note that the 100% meal and beverage deduction applies to 2021 and 2022. The purpose of this temporary change from a 50% deduction to a 100%, was to help stimulate the restaurant industry. |
| Work location not in area of your residence. Example: on weekends, you live in Phoenix, AZ with your family. You work in San Diego weekdays. You stay in a hotel and eat meals in a San Diego restaurant. | San Diego is your "home" for tax purposes. Therefore, your expenses for traveling to San Diego, meals and lodging there are not deductible; they are personal expenses. |
| Temporary assignment in an area other than where y you have y our residence. Example: You live in and operate your business in New York City. You supervise a project in Connecticut. You travel to Connecticut and stay there for 60 days. You return to New York City occasionally on your days off; the rest of the time you stay in Connecticut. | You may deduct your transportation expenses but not the cost of personal meals on one-day business trips within the general area of your tax home |
| Weekend trip home from temporary assignment. Same facts as the above example where you return home to New York City occasionally, except that you return home each weekend. | You're not "away from home" while you're in New Your City on your days off. Therefore, your meals and lodging while there are not deductible. However, you may deduct your traveling expenses, including meals and lodging, if any, from Connecticut to New York City and back if they are no more than the amount it would have cost you for your meals and lodging if you had stayed in Connecticut. If they are more, your deduction is limited to the amount you would have spent in Connecticut. If you retain your room in Connecticut while at your residence in New York City, your expenses of returning to New York City on days off are deductible only to the extent of the amount you would have spent for your meals had your stayed in Connecticut. |
| Seasonal work in different area. Example: You live in Tucson, where you work for eight months each year and work in Las Vegas the remaining four months. The greater share of of your annual income is from Tucson. While in Las Vegas, you eat and sleep in a hotel. You've been working in these location for several years and expect to continue to do so. | You have two recurring places of business. Tucson is your principal place of business. Therefore, you may deduct the costs of your traveling while away from Tucson working at your minor p lace of business in Las Vegas, including meals and lodging in Las Vegas. |
| Convention Trip | You may deduct the costs of travel to a business convention under certain rules (see Convention Trip, below). If you are a delegate to a charitable or veterans' convention, you may claim a charitable deduction for the travel costs. |
| Trip for health reasons | If you itemize your deductions on Schedule A, you may deduct the cost of a trip for medical reasons as a medical expense. For example, trips to the doctor's office, hospital or clinic. If you use your vehicle, you may deduct a flat 16 cents per mile plus parking and tolls. The portion of medical expenses that exceed 7.5% of adjusted gross income (AGI) are deductible for federal income tax purposes. However, this limitation may not be true for your state. For example, in Arizona, 100% of medical expenses are deductible on the state return. Check with your state. |
Convention Trip:
The key to claiming a deduction for expenses of attending a convention is that your attendance at the convention benefited your business. For example, if you're a delegate to a business convention, make sure you can prove you attended to serve primarily your own business interest and not those of the association.
Deducting expenses of attending an investment convention or seminar are not permitted. You may not deduct the cost of attending a business convention or seminar if you simply receive a video or download a business lecture to be viewed at your convenience and no other business-related activities occurring during the event.
You may not deduct expenses at conventions held by fraternal organizations, such as the American Legion, Shriners, etc. even if incidental business was conducted.
Convention Expenses You May Deduct:
You may deduct the cost of travel to and from the convention, food costs, tips, display expenses and hotel bills. You may also deduct these costs if you entertain business clients or customers. Self-employed persons deduct business-related travel expenses while away from home as a business expense on Schedule C.
Accountable Plan
Under an accountable plan, an expense allowance for travel costs is not reported as income on Form W-2 if you substantiated the expenses to your employer and returned any unsubstantiated portion of the allowance to the employer.
A reimbursement or allowance arrangement is an accountable plan if you must:
- Adequately account to your employer for your expenses; and
- Return any excess reimbursement or allowance to your employer that you do not show was spent for ordinary and necessary business expenses..
Personal Travel Expenses of a Spouse, Dependents(s) and Others
Shopping, sightseeing, viewing videos in your hotel room, and any other expenses for nonbusiness purposes are not deductible while on a business trip.
Expenses of a Spouse, Dependent, or Other Individual
Generally, if a spouse, dependent, or other individual accompanies you on a business trip their expenses are not deductible. However, expenses for your employees or even nonemployees who accompany you on a business trip may be deductible under certain conditions.
A deduction is allowed if the person is your employee and that person's attendance serves a bona fide business purpose that would justify claiming a deduction had the person taken the trip on his or her own.
Non-Employees
Even if the person is not your employee, a deduction for dining and entertainment expenses may be allowed for goodwill entertainment.
If a non-employee spouse, dependent, or other person accompanies you on a business trip for purely social reasons, you may deduct what the trip would have cost had you gone on the trip alone.
In other words, figure out the total cost of the trip for you and the other person then subtract any additional costs attributable to the other person's attendance.