IRS Issues New 2025–2026 Per Diem Rates Effective Oct. 1

The IRS has released new 2025–2026 special per diem rates for ordinary and necessary business expenses incurred when traveling away from home. The guidance includes: 1) special transportation industry meals and incidental expenses (M&IE) rates, 2) the incidental expenses only deduction, and 3) a list of high-cost localities used in the high-low substantiation method. Although employers can pay workers more than the IRS rates, they can’t deduct more on their tax returns. The rates take effect Oct. 1, 2025. To see the various new rates in Notice 2025-54: https://bit.ly/48D8FCi