Travel reimbursement rate 2026: IRS mileage and per diem rates
Last verified: October 28, 2026, against irs.gov and gsa.gov.
If you follow federal travel rates, and your company's rates haven't changed since January, they're out of date twice over. The IRS raised the business mileage rate to 76 cents per mile on July 1, 2026, and new federal per diem rates took effect on October 1, with standard lodging at $113 and meals and incidentals at $68 per day.
Each rate has its own start date, so the date of the trip decides which one you use.
Travel reimbursement rate 2026 at a glance
| Rate | Amount | Effective dates | Source |
|---|---|---|---|
| GSA standard per diem rate, FY 2027 | $181 per day ($113 lodging + $68 M&IE) | Oct 1, 2026 to Sep 30, 2027 | GSA Per Diem Bulletin FTR 27-01 |
| GSA standard per diem rate, FY 2026 | $178 per day ($110 lodging + $68 M&IE) | Oct 1, 2025 to Sep 30, 2026 | GSA Per Diem Bulletin FTR 27-01 |
| IRS high-low, high-cost locality | $329 per day ($86 M&IE) | From Oct 1, 2026 | IRS Notice 2026-60 |
| IRS high-low, other CONUS locality | $230 per day ($74 M&IE) | From Oct 1, 2026 | IRS Notice 2026-60 |
| IRS business mileage | 72.5 cents per mile | Jan 1 to Jun 30, 2026 | IRS Notice 2026-10 |
| IRS business mileage | 76 cents per mile | Jul 1 to Dec 31, 2026 | IRS Announcement 2026-11 |
Key takeaways
- Federal per diem changed on October 1, 2026, when the standard lodging rate rose to $113 and meals and incidentals stayed at $68.
- The IRS business mileage rate is 76 cents per mile from July 1, 2026, up from 72.5 cents.
- From October 1, 2026, the IRS high-low rates are $329 a day for high-cost localities and $230 a day everywhere else in the continental US.
- A June trip submitted in August still uses the June mileage rate, so match every expense to the rate in effect on the day of travel.
- Look up location-specific and foreign rates at the source, since they vary by city and change during the year.
Per diem rates 2026: GSA standard and high-low
Per diem rates follow the federal fiscal year, so they change every October 1 instead of in January. That means the 2026 per diem rates come in two sets, one for trips through September 30 and one for trips from October 1.
You can base your rates on either of two federal systems. The GSA sets rates for federal employees, location by location. The IRS publishes a simpler high-low version with one rate for high-cost areas and one for everywhere else.
If you're setting a per diem policy for the first time, pick one system and use it for every trip, so employees always know which rate applies.
GSA standard per diem rate 2026 vs per diem rates 2027
The standard per diem rate covers most of the continental US (CONUS). It's split into lodging and M&IE, which stands for meals and incidental expenses.
| Federal fiscal year | Lodging | M&IE | Daily total |
|---|---|---|---|
| FY 2026 (Oct 1, 2025 to Sep 30, 2026) | $110 | $68 | $178 |
| FY 2027 (Oct 1, 2026 to Sep 30, 2027) | $113 | $68 | $181 |
For FY 2027, M&IE tiers run from $68 to $92 per day, and 295 locations have their own higher lodging rates. To find the rate for a specific city, you can search by city, state, or ZIP code on GSA's per diem lookup.
IRS per diem rates 2026: The high-low method
The IRS per diem rates for 2026 come from the high-low method, which uses one daily rate for high-cost localities and another for every other location in CONUS.
| Period | High-cost locality | Other CONUS locality |
|---|---|---|
| Oct 1, 2025 to Sep 30, 2026 | $319 per day ($86 M&IE) | $225 per day ($74 M&IE) |
| From Oct 1, 2026 | $329 per day ($86 M&IE) | $230 per day ($74 M&IE) |
The incidental-expenses-only rate is $5 per day in both periods. For the transportation industry, the M&IE rate from October 1, 2026 is $80 for travel within CONUS and $86 outside it, per IRS Notice 2026-60.
Business mileage: Two rates in one year
The IRS normally sets one set of mileage rates for the whole year, starting January 1. In 2026, it raised them on July 1, so you'll need two business rates for the year.
| Purpose | Jan 1 to Jun 30, 2026 | Jul 1 to Dec 31, 2026 |
|---|---|---|
| Business | 72.5 cents per mile | 76 cents per mile |
| Medical, and moving for active-duty military | 20.5 cents per mile | 23.5 cents per mile |
| Charitable | 14 cents per mile | 14 cents per mile |
The IRS explained the change in Announcement 2026-11: "This modification results from recent increases in the price of fuel." The new rates apply to miles driven on or after July 1, 2026, per the IRS standard mileage rates page.
The date of the drive sets the rate, so a June trip you submit in August still uses 72.5 cents. The 2026 mileage reimbursement rate guide covers how the IRS sets the rate and how to track miles.
Travel reimbursement 2026 examples: How to calculate mileage and per diem
Every calculation works the same way: take the rate for the date of travel and multiply it by the miles or days. Here's what that looks like with the 2026 rates.
Mileage across the July 1 change
An employee drives 400 business miles in June and 400 in July.
June: 400 miles × $0.725 = $290.00
July: 400 miles × $0.76 = $304.00
Total: $594.00
A standard per diem day in FY 2027
An employee spends one full day in a standard CONUS location after October 1, 2026.
$113 lodging + $68 M&IE = $181 per day
Two days at the high-low rate
An employee spends two full days in a high-cost locality after October 1, 2026.
2 days × $329 = $658
Partial travel days and city-specific rates need a lookup, so you'll want GSA's site for those.
Foreign per diem rates for international travel
GSA and IRS rates only cover the US. Foreign per diem rates come from the U.S. Department of State, whose Office of Allowances sets lodging and M&IE rates by location.
To find one, go to the Office of Allowances site at allowances.state.gov, open the foreign per diem rates, and pick the country, then the location.
Foreign rates are updated throughout the year, so check the rate for the dates of each trip instead of saving a copy in January.
How to keep your company's rates current
Two dates on your calendar cover most changes. The IRS sets mileage rates in January, and per diem rates change on October 1 with the federal fiscal year. In 2026, the IRS also changed mileage mid-year, so check irs.gov in early July too.
When a rate changes, update your policy and your expense software on the same day. If the policy changes but the software doesn't, your employees still get paid the old amount.
In Expensify, admins can update a workspace's per diem rates by uploading a CSV file, as the per diem setup guide explains, and employees can log drives in the mileage tracking app.
The IRS guidelines for travel reimbursement cover the tax rules behind using these rates.
Before you approve the next travel report
Before approving the next travel expense report that lands on your desk, start with the date of the trip, then make sure the rate matches it. A drive in June still pays 72.5 cents a mile, a drive in July pays 76 cents, and any trip from October 1 uses the FY 2027 per diem rates.
Get the date right, and the rest is simple math. The next change to watch for is the IRS's mileage rate for 2027, which it usually announces in December.
FAQs about travel reimbursement rates in 2026
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From October 1, 2026, the GSA standard per diem is $181 per day, made up of $113 for lodging and $68 for meals and incidentals. The IRS business mileage rate is 76 cents per mile from July 1, 2026, and was 72.5 cents per mile from January 1 to June 30.
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From October 1, 2026, the M&IE rate is $86 per day for high-cost localities and $74 per day for other CONUS localities under the IRS high-low method. The GSA standard M&IE rate is $68 per day.
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Under the high-low method, the IRS allows $86 per day for meals and incidentals in high-cost localities and $74 per day elsewhere in the continental US, from October 1, 2026. Businesses using the GSA standard rate allow $68 per day in most locations.
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For federal fiscal year 2027, which runs from October 1, 2026 to September 30, 2027, the GSA standard per diem is $113 for lodging and $68 for meals and incidentals, or $181 per day. Higher rates apply in 295 non-standard locations.
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The IRS raised the rate because of fuel costs. Announcement 2026-11 says, "This modification results from recent increases in the price of fuel." The business rate went from 72.5 cents to 76 cents per mile for miles driven on or after July 1, 2026.
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For the transportation industry, which includes over-the-road (OTR) truck drivers, the IRS M&IE rate from October 1, 2026 is $80 per day for travel within the continental US and $86 per day outside it, per IRS Notice 2026-60.
