IRS Releases 2025-2026 Rates for Business Travel Expenses

The IRS Tuesday issued a notice on the annual per diem rates for business travel expenses for the 2025-2026 fiscal year, effective Oct. 1.

The notice provides the special transportation industry meal and incidental expenses rates, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. The special M&IE rates are $80 for travel within the continental US and $86 for travel outside the US. The incidental expenses only deduction rate is $5 per day for both types of travel. For the high-low substantiation method, the high ...