2018 Per Diem Rate
For 2018, the Per Diem Rate is $284 (High-cost locality), $191 (Other locality within CONUS), $5 (Incidental expenses only) and 5 more figures below.
| Item | High-cost locality | Other locality | CONUS | OCONUS |
|---|---|---|---|---|
| Meals portion | $68 | $57 | - | - |
| Transportation industry M&IE | - | - | $63 | $68 |
A dash is a figure this site has not published for that row, not an amount of zero.
Effective 2017-10-01Source: Notice 2017-54 (IRS)Verified 2026-08-31
Compared with 2017
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| High-cost locality | $282 | $284 | +$2 (+0.7%) |
| Other locality within CONUS | $189 | $191 | +$2 (+1.1%) |
| Incidental expenses only | $5 | $5 | +$0 (+0.0%) |
| High-cost threshold | $236 | $238 | +$2 (+0.8%) |
| Meals portion, high-cost locality | $68 | $68 | +$0 (+0.0%) |
| Meals portion, other locality | $57 | $57 | +$0 (+0.0%) |
| Transportation industry M&IE, CONUS | $63 | $63 | +$0 (+0.0%) |
| Transportation industry M&IE, OCONUS | $68 | $68 | +$0 (+0.0%) |
Localities the document lists
52 localities in 19 states, each named as the document prints it.
15 rows name no portion of the year, and the table reads all of the calendar year for them.
| Locality | State | Portion of the calendar year |
|---|---|---|
| Mill Valley/San Rafael/Novato Marin | California | October 1-October 31 and June 1-September 30 |
| Monterey Monterey | California | July 1-August 31 |
| Napa Napa | California | October 1-October 31 and May 1-September 30 |
| Oakland Alameda | California | October 1-October 31 and January 1-September 30 |
| San Francisco San Francisco | California | All of the calendar year |
| San Mateo/Foster City/Belmont San Mateo | California | All of the calendar year |
| Santa Barbara Santa Barbara | California | All of the calendar year |
| Santa Monica City limits of Santa Monica | California | All of the calendar year |
| Sunnyvale/Palo Alto/San Jose Santa Clara | California | All of the calendar year |
| Aspen Pitkin | Colorado | All of the calendar year |
| Denver/Aurora Denver, Adams, Arapahoe, and Jefferson | Colorado | All of the calendar year |
| Grand Lake Grand | Colorado | December 1-March 31 |
| Silverthorne/Breckenridge Summit | Colorado | December 1-March 31 |
| Steamboat Springs Routt | Colorado | December 1-March 31 |
| Telluride San Miguel | Colorado | All of the calendar year |
| Vail Eagle | Colorado | December 1-March 31 and July 1-August 31 |
| Lewes Sussex | Delaware | July 1-August 31 |
| Washington D.C. (also the cities of Alexandria, Falls Church, and Fairfax, and the counties of Arlington and Fairfax, in Virginia; and the counties of Montgomery and Prince George's in Maryland) (See also Maryland and Virginia) | District of Columbia | All of the calendar year |
| Boca Raton/Delray Beach/Jupiter Palm Beach and Hendry | Florida | January 1-April 30 |
| Fort Lauderdale Broward | Florida | January 1-April 30 |
| Fort Meyers Lee | Florida | February 1-March 31 |
| Fort Walton Beach/De Funiak Springs Okaloosa and Walton | Florida | June 1-July 31 |
| Key West Monroe | Florida | All of the calendar year |
| Miami Miami-Dade | Florida | December 1-March 31 |
| Naples Collier | Florida | December 1-April 30 |
| Chicago Cook and Lake | Illinois | October 1-November 30 and April 1-September 30 |
| Bar Harbor Hancock | Maine | October 1-October 31 and July 1-September 30 |
| Ocean City Worcester | Maryland | July 1-August 31 |
| Washington, DC Metro Area Montgomery and Prince George’s | Maryland | All of the calendar year |
| Boston/Cambridge Suffolk, city of Cambridge | Massachusetts | All of the calendar year |
| Falmouth City limits of Falmouth | Massachusetts | July 1-August 31 |
| Hyannis Barnstable less the city of | Massachusetts | July 1-August 31 |
| Martha's Vineyard Dukes | Massachusetts | June 1-September 30 |
| Nantucket Nantucket | Massachusetts | June 1-September 30 |
| Petoskey Emmet | Michigan | July 1-August 31 |
| Traverse City/Leland Grand Traverse and Leelanau | Michigan | July 1-August 31 |
| Lake Placid Essex | New York | July 1-August 31 |
| New York City Bronx, Kings, New York, Queens, and Richmond | New York | All of the calendar year |
| Saratoga Springs/Schenectady Saratoga and Schenectady | New York | July 1-August 31 |
| Portland Multnomah | Oregon | October 1-October 31 and March 1-September 30 |
| Seaside Clatsop | Oregon | July 1-August 31 |
| Hershey Hershey | Pennsylvania | June 1-August 31 |
| Philadelphia Philadelphia | Pennsylvania | October 1-November 30 and April 1-September 30 |
| Jamestown/Middletown/Newport Newport | Rhode Island | October 1-October 31 and June 1-September 30 |
| Charleston Charleston, Berkeley and | South Carolina | October 1-November 30 and Dorchester March 1-September 30 |
| Park City Summit | Utah | December 1-March 31 |
| Virginia Beach City of Virginia Beach | Virginia | June 1-August 31 |
| Wallops Island Accomack | Virginia | July 1-August 31 |
| Washington, DC Metro Area Cities of Alexandria, Fairfax, and Falls Church; counties of Arlington and Fairfax | Virginia | All of the calendar year |
| Seattle King | Washington | All of the calendar year |
| Vancouver Clark, Cowlitz, and Skamania | Washington | October 1-October 31 and March 1-September 30 |
| Jackson/Pinedale Teton and Sublette | Wyoming | June 1-September 30 |
Who it applies to
Taxpayers who use a per diem rate to substantiate ordinary and necessary business expenses while traveling away from home within the continental United States (CONUS).
What changed this year, and why
The IRS published updated per diem rates for the high-low substantiation method and the incidental expenses only deduction, effective October 1, 2017, through September 30, 2018.
Common questions
- What is the per diem rate for a high-cost locality in 2018?
- For travel on or after October 1, 2017, and through September 30, 2018, the per diem rate for any high-cost locality within CONUS is $284 per day.
- What is the per diem rate for other CONUS localities in 2018?
- For travel on or after October 1, 2017, and through September 30, 2018, the per diem rate for any other locality within CONUS is $191 per day.
- What is the incidental expenses only rate for 2018?
- For travel on or after October 1, 2017, and through September 30, 2018, the rate for incidental expenses only is $5 per day for any CONUS or OCONUS locality.
- How did the 2018 rates change from 2017?
- The high-cost locality rate increased from $282 to $284, and the other-CONUS locality rate increased from $189 to $191. The incidental expenses only rate remained $5.
What a per diem rate actually proves
Notice 2017-54 establishes the 2017-2018 special per diem rates that taxpayers use to substantiate ordinary and necessary business expenses while traveling away from home. Under Section 274(d) of the Internal Revenue Code and the corresponding regulations, a taxpayer does not have to itemize actual receipts if the employer pays a per diem allowance that meets the rules in Rev. Proc. 2011-47. Instead, the allowance itself is treated as sufficient proof of the amount spent, up to the published rate. The notice sets three kinds of rate: (1) the special meal-and-incidental-expenses (M&IE) rates for the transportation industry, (2) the incidental-expenses-only rate of $5 per day, and (3) the full per diem rates used under the high-low substantiation method - $284 for travel to any high-cost locality and $191 for travel to any other CONUS locality. To use these rates, the taxpayer must comply with the conditions in Rev. Proc. 2011-47, including the requirement that the travel be away from home.
This annual notice provides the 2017-2018 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, specifically (1) the special transportation industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method.
Notice 2017-54 (IRS)
What makes a city a high-cost locality
Under the high-low substantiation method, CONUS localities are split into two tiers: a high-cost tier and a lower tier. A locality qualifies as high-cost if its federal per diem rate reaches the threshold set by the IRS for the notice year. For 2017-2018, that threshold is $238, meaning any CONUS locality whose federal per diem rate is $238 or more appears on the high-cost list. When a locality is on the list, the taxpayer may use the high rate of $284 for any day of travel there; when the locality is not on the list, the rate is $191. High-cost status is not always year-round: many localities are high-cost only for certain peak months (for example, ski resorts in winter or beach towns in summer). The notice lists, for each key city, the specific date ranges during which it counts as high-cost. Outside those windows the locality falls to the $191 rate.
The following localities have a federal per diem rate of $238 or more, and are high-cost localities for all of the calendar year or the portion of the calendar year specified in parentheses under the key city name.
Notice 2017-54 (IRS)
What changed in the high-cost list since last year
Oakland, Lewes, Fort Myers, Hyannis, Petoskey, Portland and Vancouver joined the high-cost list. A large Colorado group, Aspen, Denver/Aurora, Telluride and Vail, changed the months they count for, along with Bar Harbor, Ocean City, Nantucket, Philadelphia, Newport and Jackson/Pinedale. Sedona, Los Angeles, Vero Beach and Kill Devil came off after a single year on the list. The seasonal qualification is the part readers miss: a city on the list for four months of the year is reimbursed at the other-locality rate for the other eight.
a. The following localities have been added to the list of high-cost localities: Oakland, California; Lewes, Delaware; Fort Myers, Florida; Hyannis, Massachusetts; Petoskey, Michigan; Portland, Oregon; Vancouver, Washington. b. The following localities have changed the portion of the year in which they are high-cost localities: Aspen, Colorado; Denver/Aurora, Colorado; Telluride, Colorado; Vail, Colorado; Bar Harbor, Maine; Ocean City, Maryland; Nantucket, Massachusetts; Philadelphia, Pennsylvania; Jamestown/Middletown/Newport, Rhode Island; Jackson/Pinedale, Wyoming. c. The following localities have been removed from the list of high-cost localities: Sedona, Arizona; Los Angeles, California; Vero Beach, Florida; Kill Devil, North Carolina.
Notice 2017-54 (IRS)
How much of the rate counts as meals
A high-low rate is one number covering lodging, meals and incidental expenses, and the two halves are not taxed alike, so the notice states where the line falls. Of the $284 high rate, $68 is treated as paid for meals; of the $191 rate for every other locality within CONUS, $57 is. The rest of each rate is lodging. A payor has to split the allowance this way before it can work out what is deductible, because the meals side runs into a percentage limit that the lodging side does not.
The amount of the $284 high rate and $191 low rate that is treated as paid for meals for purposes of § 274(n) is $68 for travel to any high- cost locality and $57 for travel to any other locality within CONUS.
Notice 2017-54 (IRS)
How much of the meals portion you can actually deduct
A per diem rate is not a deduction. It is the ceiling on what can be treated as substantiated, and the meals part of it is then cut again before it reaches a tax return: whichever method you use, you can generally deduct only 50% of the unreimbursed cost of your meals. On the high-low method the meals part is the figure this page publishes above, $68 a day in a high-cost locality and $57 a day anywhere else in CONUS, so it is half of that amount, not the whole rate, that survives the limit. The lodging part of the rate is not touched by it, and neither is the incidental-expenses-only amount.
Both of these methods are explained below. But, regardless of the method you use, you generally can deduct only 50% of the unreim- bursed cost of your meals.
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
Drivers and crews get their own M&IE rate
Taxpayers who work in the transportation industry do not have to use the city-by-city high-low rates. Instead, Rev. Proc. 2011-47 provides a single special M&IE rate that applies regardless of which city the traveler is in. For 2017-2018 the special M&IE rate for travel within the continental United States (CONUS) is $63 per day, and the rate for travel outside the continental United States (OCONUS) is $68 per day. These amounts cover meals and incidental expenses only; they do not include lodging, which must still be substantiated separately. The transportation-industry rates simplify recordkeeping for over-the-road truck drivers, pilots, flight crews, train crews, merchant mariners, and similar workers whose jobs carry them through many jurisdictions in a single trip. A taxpayer in the transportation industry may elect to use these special rates in place of the regular high-low method, but must continue to follow the other conditions in Rev. Proc. 2011-47.
The special M&IE rates for taxpayers in the transportation industry are $63 for any locality of travel in the continental United States (CONUS) and $68 for any locality of travel outside the continental United States (OCONUS).
Notice 2017-54 (IRS)
The rates change on October 1, not January 1
The per diem rates in Notice 2017-54 do not take effect on January 1. Like every annual per diem notice, the new rates apply from the beginning of the federal government's fiscal year - October 1. Specifically, the notice is effective for per diem allowances for lodging, meal and incidental expenses, or for meal and incidental expenses only, that are paid to any employee on or after October 1, 2017, for travel away from home on or after October 1, 2017. The same October 1 date applies when the taxpayer computes the deduction directly rather than through an allowance: meal and incidental expenses, and incidental expenses only, are measured at the new rates when paid or incurred on or after October 1, 2017. Rev. Proc. 2011-47 contains transition rules for the final three months of calendar year 2017 to handle trips that span the changeover date. As a result, for most of 2018 the rates in effect will be the ones published in this notice, until the next annual update takes effect on October 1, 2018.
This notice is effective for per diem allowances for lodging, meal and incidental expenses, or for meal and incidental expenses only, that are paid to any employee on or after October 1, 2017, for travel away from home on or after October 1, 2017.
Notice 2017-54 (IRS)
The first and last day of a trip are not full days
A trip that starts at lunchtime and ends at breakfast does not buy two full days of meals. For the day you leave and the day you come back, the M&IE rate has to be prorated, and Publication 463 gives two ways to do it: claim 3/4 of the standard meal allowance for each of those days, or prorate by any method you apply consistently and that is in accordance with reasonable business practice. Only the meals and incidental side is prorated. Lodging is not, because a night away from home is either bought or it is not. An employer reimbursing under the high-low method prorates the meals part the same way, which is why the per diem paid for a departure day is smaller than the daily rate printed above.
Travel for days you depart and return. For both the day you depart for and the day you re- turn from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). You can do so by one of two methods. • Method 1: You can claim 3/4 of the stand- ard meal allowance.
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
An allowance paid above the federal rate is wages
Nothing stops an employer paying more than the federal rate. What it cannot do is call the extra a reimbursement. Where an accountable plan pays an allowance higher than the federal rate, the traveller does not have to return the difference, but the difference is reported as wages on the Form W-2 and is taxed and withheld on like any other pay. Only the part up to the federal rate stays out of income. That is what the rates on this page are for a reader who deducts nothing at all: the line above which an allowance stops being an expense reimbursement and becomes salary.
Per diem allowance more than federal rate. If your employer's accountable plan pays you an allowance that is higher than the federal rate, you don’t have to return the difference be- tween the two rates for the period you can prove business-related travel expenses. How- ever, the difference will be reported as wages on your Form W-2. This excess amount is con- sidered paid under a nonaccountable plan (dis- cussed later).
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
There is no per diem for lodging, only for meals
The standard meal allowance is open to anyone travelling on business, employee or self-employed, reimbursed or not. Lodging is not. There is no optional standard lodging amount, so the lodging deduction is the actual cost and nothing else, proved by the actual bill. That is the practical split for a self-employed traveller reading this page: the M&IE side of the notice can be used instead of meal receipts, and the full lodging-plus-meals rates above cannot, because they are written for a payor reimbursing an employee rather than for someone deducting their own hotel.
There is no optional standard lodging amount similar to the standard meal al- lowance. Your allowable lodging ex- pense deduction is your actual cost. Who can use the standard meal allowance. You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses.
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
Who can deduct travel an employer did not reimburse
For most employees the honest answer is that they cannot. Unreimbursed employee travel is claimed on Form 2106, and Form 2106 is only used by Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses. An employee outside those categories who is paid nothing, or paid less than the federal rate, deducts nothing for the shortfall. The rates on this page still matter to that employee, but as the measure of what an employer can reimburse tax free rather than as a deduction. A self-employed traveller is unaffected by any of this and deducts on a business schedule.
You must complete Form 2106 and itemize your deductions to deduct your expenses for travel, transportation, or non-entertainment-re- lated meals. Your meal and entertainment ex- penses will be subject to the 50% limit dis- cussed in chapter 2. Form 2106 is only used by Armed Forces reservists, qualified performing artists, fee-basis state or local govern- ment officials, and employees with impair- ment-related work expenses.
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2017-54 (IRS)
- High-cost locality
are $284 for travel to any high-cost locality and $191 for travel to any other locality within CONUS.
- Other locality within CONUS
are $284 for travel to any high-cost locality and $191 for travel to any other locality within CONUS.
- Incidental expenses only
The rate for any CONUS or OCONUS locality of travel for the incidental expenses only deduction is $5 per day.
- High-cost threshold
The following localities have a federal per diem rate of $238 or more, and are high-cost localities for all of the calendar year or the portion of the calendar year specified in parentheses under the key city name.
- Meals portion, high-cost locality
The amount of the $284 high rate and $191 low rate that is treated as paid for meals for purposes of § 274(n) is $68 for travel to any high- cost locality and $57 for travel to any other locality within CONUS.
- Meals portion, other locality
The amount of the $284 high rate and $191 low rate that is treated as paid for meals for purposes of § 274(n) is $68 for travel to any high- cost locality and $57 for travel to any other locality within CONUS.
- Transportation industry M&IE, CONUS
The special M&IE rates for taxpayers in the transportation industry are $63 for any locality of travel in the continental United States (CONUS) and $68 for any locality of travel outside the continental United States (OCONUS).
- Transportation industry M&IE, OCONUS
The special M&IE rates for taxpayers in the transportation industry are $63 for any locality of travel in the continental United States (CONUS) and $68 for any locality of travel outside the continental United States (OCONUS).