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What is the per diem rate for travel in 2023?

FY 2023 CONUS Per Diem Rates for Federal Travelers Released The M&IE per diem tiers for FY 2023 are unchanged at $59-$79, with the standard M&IE rate unchanged at $59.



For the 2023 fiscal year (which ran from October 1, 2022, to September 30, 2023), the standard IRS/GSA per diem rate for the continental United States (CONUS) was $157 per day, consisting of $98 for lodging and $59 for meals and incidental expenses (M&IE). However, for "high-cost" localities like New York City, San Francisco, or Washington D.C., the rates were significantly higher, often exceeding $300 per day. For those in the transportation industry, the special M&IE rates were $69 for CONUS and $74 for OCONUS (outside the continental US). In 2026, many corporate travelers still look back at these 2023 rates as a benchmark for post-pandemic travel budgeting. It is important to note that these rates are meant to cover "ordinary and necessary" business expenses; if your company pays you more than the federal rate, the excess may be treated as taxable income unless you provide receipts for the actual costs incurred.

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Federal per diem rates consist of a maximum lodging allowance component and a meals and incidental expenses (M&IE) component. Most of CONUS (approximately 2,600 counties) is covered by the standard rate of $166 ($107 lodging, $59 M&IE).

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Beginning May 3, 2023, your driver's license will need to be REAL ID-compliant if you want to use it to fly within the U.S. It's part of a law passed by Congress. If your license is not compliant, and you don't have another acceptable form of ID, you'll have trouble getting through airport security.

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The fee, which will cost €7 ($7.44), will be required for travelers from visa-exempt countries, including the United States, to enter 30 different European countries. The fee will be valid for three years or until the expiration date of someone's travel document.

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The total per diem is the sum of the M&IE rate and the lodging rate. In other words: Total Per Diem = M&IE rate + Lodging rate. So, for example, if the M&IE rate for a specific location is $60 per day, and the lodging rate is $100 per day, the total per diem for that location would be $160 ($60 + $100).

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Transportation expenses on a business trip are deductible If you drive your own vehicle, you can usually take actual costs or the IRS standard mileage rate. For 2023 the rate is 65.5 cents per mile. You also can add tolls and parking costs onto your deduction.

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Per diem eliminates the need for employees to keep track of and submit receipts for individual expenses. This reduces the administrative burden on both the employee and employer.

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