In Notice 2016-58, the IRS released the per diem reimbursement rates that will apply effective October 1, 2016 (or, optionally, January 1, 2017). The per diem reimbursement rate for high-cost areas increases from $275 to $282 and from $185 to $189 for low-cost areas. There were also a number of changes to the areas that qualify as high cost.

The special M&IE rates for taxpayers in the transportation industry are unchanged at $63 for any locality of travel in the continental United States (CONUS) and $68 for any locality of travel outside the continental United States (OCONUS). (See Revenue Procedure 2011-47.)

Note that transportation between places of lodging or business and places where meals are taken, and the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings, are no longer included in incidental expenses.

The per diem rates for each locality of travel in the Continental United States (CONUS) can be found at www.gsa.gov.

Per diem rates for travel outside of the Continental United States (OCONUS) are available on the U.S. Department of Defense website. Foreign per diem rates can be found on the U.S. Department of State website.

For more information, click here.

See the Attachment for the high-cost localities of travel under the high-low substantiation method.

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ATTACHMENT

High-cost Localities of Travel