26 September 2017

2018 federal per diem rates under the high-low substantiation method

In Notice 2017-54, the IRS released the per diem reimbursement rates that will apply effective October 1, 2017 (or, optionally, January 1, 2018). The per diem reimbursement rate for high-cost areas increases from $282 to $284 and from $189 to $191 for low-cost areas. There were also a number of changes to the areas that qualify as high cost.

Description

High-cost area

Low-cost area

Lodging, meals and incidentals

$284 (was $282)

$191 (was $189)

Lodging only

$216 (was $214)

$134 (was $132)

Meals and incidentals only

$68 (no change)

$57 (no change)

Incidental expenses only

$5 (no change)

$5 (no change)

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 here. 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.

High-cost localities of travel under the high-low substantiation method (effective October 1, 2017)

Key

County/other defined location

California

Mill Valley/San Rafael/Novato

(Oct.1-Oct.31 and June 1-Sept.30) )

Marin

Monterey

(July 1 — Aug. 31)

Monterey

Napa

(Oct. 1 — Oct. 31 and May. 1 — Sept.30)

Napa

Oakland

(Oct. 1-Oct. 31 and Jan. 1-Sept. 30)

Alameda

San Francisco

San Francisco

San Mateo/Foster City/Belmont

San Mateo

Santa Barbara

Santa Barbara

Santa Monica

City limits of Santa Monica

Sunnyvale/Palo Alto/San Jose

Santa Clara

Colorado

Aspen

Pitkin

Denver/Aurora

Denver, Adams, Arapahoe and Jefferson

Grand Lake

(Dec. 1-March 31)

Grand

Silverthorne/Breckenridge

(Dec. 1-March 31)

Summit

Steamboat Springs

(Dec. 1 — March 31)

Routt

Telluride

San Miguel

Vail

(Dec. 1 -March 31 and July 1-Aug. 31)

Eagle

Delaware

Lewes

(July 1-Aug. 31)

Sussex

 

District of Columbia

Washington, DC

Also the cities of Alexandra, Falls Church and Fairfax and the counties of Arlington and Fairfax in Virginia; the counties of Montgomery and Prince George's in Maryland (see also Maryland and Virginia)

Florida

Boca Raton/Delray Beach/Jupiter

(Jan. 1 — April 30)

Palm Beach and Hendry

Fort Lauderdale

(Jan. 1 — April 30)

Broward

Fort Meyers

(Feb. 1- March 31)

Lee

Fort Walton Beach/De Funiak Springs

(June 1 — July 31)

Okaloosa and Walton

Key West

Monroe

Miami

(Dec. 1 — March 31)

Miami-Dade

 Naples

(Dec. 1 — April 30)

Collier

Illinois

Chicago

(Oct. 1 — Nov. 30 and April 1 — Sept. 30)

Cook and Lake

Maine

Bar Harbor

(Oct, 1 — Oct. 31 and July 1 — Sept, 30)

Hancock

Maryland

Ocean City

(July 1 — Aug. 31)

Worcester

Washington, DC, metro area

Montgomery and Prince George's

Massachusetts

Boston/Cambridge

Suffolk, City of Cambridge

Falmouth

(July 1 — Aug. 31)

City limits of Falmouth

Hyannis

(July 1 — Aug. 31)

Barnstable less the city of Faimouth

Martha's Vineyard

(June 1 -Sept. 30)

Dukes

Nantucket

(June 1-Sept. 30)

Nantucket

Michigan

Petoskey

(July 1-Aug.31)

Emmet

Traverse City/Leland

(July 1 — Aug. 31)

Grand Traverse/Leelanau

New York

Lake Placid

(July 1 — Aug. 31)

Essex

New York City

Bronx, Kings, New York, Queens,

Richmond

Saratoga Springs/Schenectady

(July 1 — Aug. 31)

Saratoga and Schenectady

Oregon

Portland

Oct. 1-Oct. 31 and March 1-Sept. 30)

 Multnomah

Seaside

(July 1 -Aug. 31)

 Clatsop

Pennsylvania

Hershey

(June 1-Aug.31)

Hershey

Philadelphia

(Oct. 1 — Nov. 30 and April 1 — Sept.30)

Philadelphia

Rhode Island

Jamestown, Middletown and Newport

(Oct. 1-Oct. 31 and June 1-Sept, 30)

Newport

South Carolina

Charleston

(Oct. 1-Nov.30 and March 1-Sept.30)

Charleston, Berkeley and Dorchester

Utah

Park City

(Dec. 1 — March 31)

Summit

Virginia

Virginia Beach

(June 1 — Aug. 31)

City of Virginia Beach

Wallops Island

(July 1-Aug. 31)

Accomack

Washington, DC, metro area

Cities of Alexandria, Fairfax and Falls Church; counties of Arlington and Fairfax

Washington

Seattle

King

Vancouver

(Oct.1 to Oct. 31 and March 1-Sept. 30)

Clark, Cowlitz and Skamania

Wyoming

Jackson/Pinedale

(June 1-Sept, 30)

Teton and Sublette

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Advisory Services — Employment Tax Advisory
Debera Salam(713) 750-1591
Kristie Lowery(704) 331-1884
Kenneth Hausser(732) 516-4558
Debbie Spyker(720) 931-4321

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Document ID: 2017-1554