10/21/2026
New federal per diem rates took effect Oct. 1, 2026, giving employers updated benchmarks for reimbursing lodging, meals and incidental expenses.
For fiscal year 2027, the high-low method provides a $329 daily allowance for designated high-cost locations and $230 for other locations within the continental United States.
The simplified method can reduce expense-reporting work, but employers still need to address accountable plan documentation, seasonal high-cost areas, consistency requirements and the 50% deduction limit for meals.
Read our latest article to learn how the new rates work and what to review before updating your employee travel reimbursement policy: https://hubs.ly/Q04BV9820
Contact Landmark CPAs if you need help evaluating the tax and payroll implications for your business.
Learn how federal per diem rates for 2027 affect employee travel reimbursement, high-low allowances, documentation and business tax deductions.