2019-2020 Special Per Diem Rates
Notice 2019-55
SECTION 1. PURPOSE
This annual notice provides the 2019-2020 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.
SECTION 2. BACKGROUND
Rev. Proc. 2011-47, 2011-42 I.R.B. 520 (or successor), provides rules for using a
per diem rate to substantiate, under § 274(d) of the Internal Revenue Code and
§ 1.274-5 of the Income Tax Regulations, the amount of ordinary and necessary
business expenses paid or incurred while traveling away from home. Taxpayers using
the rates and list of high-cost localities provided in this notice must comply with Rev.
Proc. 2011-47 (or successor). Notice 2018-77, 2018-42 I.R.B. 601, provides the rates
and list of high-cost localities for the period October 1, 2018, to September 30, 2019.
Section 3.02(3) of Rev. Proc. 2011-47 (or successor) provides that the term
“incidental expenses” has the same meaning as in the Federal Travel Regulations, 41
C.F.R. 300-3.1, and that future changes to the definition of incidental expenses in the
Federal Travel Regulations would be announced in the annual per diem notice.
Subsequent to the publication of Rev. Proc. 2011-47, the General Services
Administration published final regulations revising the definition of incidental expenses
under the Federal Travel Regulations to include only fees and tips given to porters,
baggage carriers, hotel staff, and staff on ships. Transportation between places of
lodging or business and places where meals are taken, and the mailing cost of filing
travel vouchers and paying employer-sponsored charge card billings, are no longer
included in incidental expenses. Accordingly, taxpayers using the per diem rates may
separately deduct, if permitted, or be reimbursed for transportation and mailing
expenses.
SECTION 3. SPECIAL M&IE RATES FOR TRANSPORTATION INDUSTRY
The special M&IE rates for taxpayers in the transportation industry are $66 for
any locality of travel in the continental United States (CONUS) and $71 for any locality
of travel outside the continental United States (OCONUS). See section 4.04 of Rev.
Proc. 2011-47 (or successor).
SECTION 4. RATE FOR INCIDENTAL EXPENSES ONLY DEDUCTION
The rate for any CONUS or OCONUS locality of travel for the incidental
expenses only deduction is $5 per day. See section 4.05 of Rev. Proc. 2011-47 (or
successor).
SECTION 5. HIGH-LOW SUBSTANTIATION METHOD
1. Annual high-low rates. For purposes of the high-low substantiation method, the
per diem rates in lieu of the rates described in Notice 2018-77 (the per diem
substantiation method) are $297 for travel to any high-cost locality and $200 for travel to
any other locality within CONUS. The amount of the $297 high rate and $200 low rate
that is treated as paid for meals for purposes of § 274(n) is $71 for travel to any high-
cost locality and $60 for travel to any other locality within CONUS. See section 5.02 of
Rev. Proc. 2011-47 (or successor). The per diem rates in lieu of the rates described in
Notice 2018-77 (the meal and incidental expenses only substantiation method) are $71
for travel to any high-cost locality and $60 for travel to any other locality within CONUS.
2. High-cost localities. The following localities have a federal per diem rate of $248
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.
Key city County or other defined location
Arizona
Sedona City Limits of Sedona
California
Mill Valley/San Rafael/Novato Marin
( October 1-October 31 and
June 1-September 30)
Monterey Monterey
(July 1-August 31)
Napa Napa
(October 1-November 30 and
April 1-September 30)
Oakland Alameda
San Francisco San Francisco
San Mateo/Foster City/Belmont San Mateo
Santa Barbara Santa Barbara
(July 1-August 31)
Santa Monica City limits of Santa Monica
Sunnyvale/Palo Alto/San Jose Santa Clara
Colorado
Aspen Pitkin
(October 1-March 31 and
June 1-September 30)
Crested Butte/Gunnison Gunnison
(December 1-March 31)
Denver/Aurora Denver, Adams, Arapahoe,
(October 1-October 31 and Jefferson
and April 1-September 30)
Grand Lake Grand
(December 1-March 31)
Silverthorne/Breckenridge Summit
(December 1-March 31)
Telluride San Miguel
Vail Eagle
Delaware
Lewes Sussex
(July 1-August 31)
District of Columbia
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)
(October 1-June 30
and September 1-September 30)
Florida
Boca Raton/Delray Beach/Jupiter Palm Beach and Hendry
(December 1-April 30)
Fort Lauderdale Broward
(January 1-April 30)
Fort Meyers Lee
(February 1-March 31)
Fort Walton Beach/De Funiak Springs Okaloosa and Walton
(June 1-July 31)
Key West Monroe
(October 1-July 31)
Miami Miami-Dade
(December 1-March 31)
Naples Collier
(February 1-April 30)
Vero Beach Indian River
(December 1-April 30)
Georgia
Jekyll Island/Brunswick Glynn
(June 1-July 31)
Illinois
Chicago Cook and Lake
(October 1-November 30 and
April 1-September 30)
Maine
Bar Harbor/Rockport Hancock and Knox
(July 1-August 31)
Maryland
Ocean City Worcester
(July 1-August 31)
Washington, DC Metro Area Montgomery and Prince George’s
(October 1-June 30
and September 1-September 30)
Massachusetts
Boston/Cambridge Suffolk, City of Cambridge
(October 1-November 30 and
March 1-September 30)
Falmouth City limits of Falmouth
(July 1-August 31)
Hyannis Barnstable less the city of
(July 1-August 31) Falmouth
Martha's Vineyard Dukes
(June 1-September 30)
Nantucket Nantucket
(June 1-September 30)
Michigan
Petoskey Emmet
(July 1-August 31)
Traverse City Grand Traverse
(July 1-August 31)
Montana
Big Sky/West Yellowstone/Gardiner Gallatin and Park
(June 1-September 30)
New Mexico
Carlsbad Eddy
New York
Lake Placid Essex
(July 1-August 31)
New York City Bronx, Kings, New York, Queens,
(October 1-December 31 and and Richmond
March 1-September 30)
Oregon
Portland Multnomah
(October 1-October 31 and
June 1-September 30)
Seaside Clatsop
(July 1-August 31)
Pennsylvania
Hershey Hershey
(June 1-August 31)
Philadelphia Philadelphia
(October 1-November 30 and
September 1-September 30)
Rhode Island
Jamestown/Middletown/Newport Newport
(June 1-August 31)
South Carolina
Charleston Charleston, Berkeley, and
(October 1-October 31 and Dorchester
March 1-September 30)
Tennessee
Nashville Davidson
Texas
Midland/Odessa Midland, Andrews, Ector, and
Martin
Pecos Reeves
Utah
Park City Summit
(December 1-March 31)
Virginia
Wallops Island Accomack
(July 1-August 31)
Washington, DC Metro Area Cities of Alexandria, Fairfax, and
(October 1-June 30 Falls Church; Counties of
and September 1-September 30) Arlington and Fairfax
Washington
Seattle King
Vancouver Clark, Cowlitz, and Skamania
(October 1-October 31 and
June 1-September 30)
Wyoming
Cody Park
(June 1-September 30)
Jackson/Pinedale Teton and Sublette
(June 1-September 30)
3. Changes in high-cost localities. The list of high-cost localities in this notice differs
from the list of high-cost localities in section 5 of Notice 2018-77.
a. The following localities have been added to the list of high-cost localities: Mill
Valley/San Rafael/Novato, California; Crested Butte/Gunnison, Colorado;
Petoskey, Michigan; Big Sky/West Yellowstone/Gardiner, Montana; Carlsbad,
New Mexico; Nashville, Tennessee; Midland/Odessa, Texas.
b. The following localities have changed the portion of the year in which they are
high-cost localities: Napa, California; Santa Barbara, California; Denver,
Colorado; Vail, Colorado; Washington D.C., District of Columbia; Key West,
Florida; Jekyll Island/Brunswick, Georgia; New York City, New York; Portland,
Oregon; Philadelphia, Pennsylvania; Pecos, Texas; Vancouver, Washington;
Jackson/Pinedale, Wyoming.
c. The following localities have been removed from the list of high-cost localities:
Los Angeles, California; San Diego, California; Duluth, Minnesota; Moab, Utah;
Virginia Beach, Virginia.
SECTION 6. EFFECTIVE DATE
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, 2019, for travel away from home on or after October 1, 2019. For
purposes of computing the amount allowable as a deduction for travel away from home,
this notice is effective for meal and incidental expenses or for incidental expenses only
paid or incurred on or after October 1, 2019. See sections 4.06 and 5.04 of Rev. Proc.
2011-47 (or successor) for transition rules for the last 3 months of calendar year 2019.
SECTION 7. EFFECT ON OTHER DOCUMENTS
Notice 2018-77 is superseded.
DRAFTING INFORMATION
The principal author of this notice is Maxine Woo-Garcia of the Office of
Associate Chief Counsel (Income Tax & Accounting). For further information regarding
this notice contact Maxine Woo-Garcia at (202) 317-7005 (not a toll-free call).