26 September 2019

2019 federal per diem rates under the high-low substantiation method

In Notice 2019-55, the IRS released the per diem reimbursement rates that will apply effective October 1, 2019 (or, optionally, January 1, 2020). The per diem reimbursement rate for high-cost areas increases from $287 to $297 and from $195 to $200 for low-cost areas. There were also numerous changes to the areas that qualify as high cost.

Description

High-cost area

Low-cost area

Lodging, meals and incidentals

$297 (was $287)

$200 (was $195)

Lodging only

$226 (was $216)

$140 (was $135)

Meals and incidentals only

$71 (no change)

$60 (no change)

Incidental expenses only

$5 (no change)

$5 (no change)

The special meal-and-incidental-expenses (M&IE) rates for taxpayers in the transportation industry remain unchanged from last year at $66 for any locality of travel in the continental United States (CONUS) and $71 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.

High-cost localities of travel under the high-low substantiation method (effective October 1, 2019)

Key

County/other defined location

Arizona

Sedona

City Limits of Sedona

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 — Nov. 30 and April 1 — Sept. 30)

Napa

Oakland

Alameda

San Francisco

San Francisco

San Mateo/Foster City/Belmont

San Mateo

Santa Barbara

(July 1-Aug. 31)

Santa Barbara

Santa Monica

City limits of Santa Monica

Sunnyvale/Palo Alto/San Jose

Santa Clara

Colorado

Aspen

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

Pitkin

Crested Butte/Gunnison

(Dec. 1-March 31)

Gunnison

Denver/Aurora

(Oct. 1-Oct. 31)

Denver, Adams, Arapahoe and Jefferson

Grand Lake

(Dec. 1-March 31)

Grand

Silverthorne/Breckenridge

(Dec. 1-March 31)

Summit

Telluride

San Miguel

Vail

Eagle

Delaware

Lewes

(July 1-Aug. 31)

Sussex

District of Columbia

Washington, DC

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

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

(Dec. 1-Apirl 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

(Oct. 1-July 31)

Monroe

Miami

(Dec. 1 — March 31)

Miami-Dade

 Naples

(Feb. 1 — April 30)

Collier

Vero Beach

(Dec.1-April 30)

Indian River

Georgia

Jekyll Island/Brunswick

(June 1-July 31)

Glynn

Illinois

Chicago

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

Cook and Lake

Maine

Bar Harbor/Rockport

(July 1-Aug. 31)

Hancock and Knox

Maryland

Ocean City

(July 1 — Aug. 31)

Worcester

Washington, DC, metro area

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

Montgomery and Prince George's

Massachusetts

Boston/Cambridge

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

Suffolk, City of Cambridge

Falmouth

(July 1 — Aug. 31)

City limits of Falmouth

Hyannis

(July 1 — Aug. 31)

Barnstable less the city of Falmouth

Martha's Vineyard

(June 1 -Sept. 30)

Dukes

Nantucket

(June 1-Sept. 30)

Nantucket

Michigan

Petoskey

(July 1-Aug. 31)

Emmet

Traverse City

(July 1 — Aug. 31)

Grand Traverse

Montana

Big Sky/West Yellowstone/Gardiner

(June 1 — Sept. 30)

Gallatin and Park

New Mexico

Carlsbad

Eddy

New York

Lake Placid

(July 1 — Aug. 31)

Essex

New York City

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

Bronx, Kings, New York, Queens,

Richmond

Oregon

Portland

(Oct. 1-Oct. 31 and June 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

(June 1-Aug. 31)

Newport

South Carolina

Charleston

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

Charleston, Berkeley and Dorchester

Tennessee

Nashville

Davidson

Texas

Midland/Odessa

Midland, Andrews, Ector and Martin

Pecos

Reeves

Utah

Park City

(Dec. 1 — March 31)

Summit

Virginia

Wallops Island

(July 1-Aug. 31)

Accomack

Washington, DC, metro area

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

Arlington and Fairfax

Washington

Seattle

King

Vancouver

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

Clark, Cowlitz and Skamania

Wyoming

Cody

(June 1-Sept. 30)

Park

Jackson/Pinedale

(June 1-Sept. 30)

Teton and Sublette

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

———————————————
ATTACHMENT

EY Payroll News Flash

Document ID: 2019-1706