Per Diem Calculator
Calculate government per diem rates for meals and lodging by city and travel dates. Enter values for instant results with step-by-step formulas.
Formula
Total = (Lodging x Nights) + (Full Day Meals x Full Days) + (Partial Day Meals x 0.75 x Partial Days) - Meal Deductions
Per diem is the sum of nightly lodging rates times the number of hotel nights, plus daily M&IE rates for full travel days, plus 75% of the M&IE rate for first and last travel days, minus deductions for any provided meals.
Frequently Asked Questions
What is per diem and who sets the rates?
Per diem, Latin for per day, is a daily allowance given to employees or contractors to cover lodging, meals, and incidental expenses while traveling on business. In the United States, per diem rates for federal employees are set by the General Services Administration for the continental United States and by the Department of Defense for locations outside the continental US. These rates are updated annually, typically effective October 1st, and vary by location to reflect local cost of living differences. Private sector companies may adopt GSA rates or establish their own per diem policies. The per diem system simplifies expense reporting because travelers receive a flat daily allowance rather than submitting individual receipts for every meal and incidental purchase during their trip.
What is the difference between lodging and M&IE per diem?
Per diem is divided into two components: lodging and Meals and Incidental Expenses, commonly abbreviated as M and IE. The lodging component covers the cost of overnight accommodations and varies significantly by location, ranging from about 98 dollars per night in rural areas to over 280 dollars in expensive cities like New York and San Francisco. The M and IE component covers breakfast, lunch, dinner, and incidental expenses such as tips to hotel staff, laundry, and dry cleaning. M and IE rates range from 59 to 84 dollars per day depending on the city. Lodging per diem typically requires receipts while M and IE is usually provided as a flat allowance without requiring individual meal receipts, making it simpler to administer.
What are first and last day travel per diem rules?
Federal per diem rules specify that the first and last days of travel receive only 75 percent of the standard M and IE rate. This is because travelers typically eat some meals at home on departure and arrival days. For example, if the full M and IE rate is 79 dollars, the first and last day allowance would be 59.25 dollars. Some organizations apply this rule strictly while others provide the full rate for all travel days. For single-day trips where the traveler departs and returns on the same day, the 75 percent rate applies to the entire day. Lodging per diem is not affected by this rule since you either have a hotel night or you do not. Understanding these partial day rules is important for accurate travel budget planning.
How do provided meals affect per diem calculations?
When meals are provided at no cost to the traveler, such as conference meals, client dinners, or complimentary hotel breakfasts, the per diem must be reduced accordingly. The federal deduction rates are based on a percentage of the M and IE rate: breakfast is approximately 20 percent, lunch is approximately 30 percent, and dinner is approximately 50 percent. For example, if the M and IE rate is 79 dollars and breakfast is provided, the traveler deducts approximately 15.80 dollars from their per diem for that day. Continental breakfasts at hotels are generally exempt from this deduction rule. These deductions prevent double-dipping where a traveler receives per diem for meals they did not actually purchase out of pocket during their business trip.
Is per diem taxable income for employees?
Per diem payments are generally not taxable if they meet certain IRS requirements. Under the accountable plan rules, per diem is tax-free when the travel has a business purpose, the payment does not exceed the federal rate for the location, and the employee provides an expense report with dates, locations, and business purpose within a reasonable time. If per diem exceeds the federal rate, only the excess amount is taxable as wages. If the employer does not require adequate accounting of the expenses, the entire per diem amount becomes taxable income subject to income tax and employment taxes. Self-employed individuals cannot receive per diem but can deduct actual travel expenses on their tax returns, using the GSA rates as a guideline for meal deductions without requiring individual receipts.
What formula does Per Diem Calculator use?
The formula used is described in the Formula section on this page. It is based on widely accepted standards in the relevant field. If you need a specific reference or citation, the References section provides links to authoritative sources.