Per Diem Calculator

About the Per Diem Calculator

Per diem (Latin for "per day") is a daily allowance paid to employees for lodging, meals, and incidental expenses while traveling on business. The U.S. General Services Administration (GSA) sets per diem rates for domestic travel, varying by location and time of year. The Department of Defense establishes rates for international travel.

This Per Diem Calculator helps you estimate total travel reimbursement by multiplying the daily lodging and M&IE (Meals and Incidental Expenses) rates by the number of travel days. You can enter custom rates for your destination or use standard amounts to quickly estimate trip costs.

Accurate per diem calculations help businesses budget for travel, ensure employees receive proper reimbursement, and maintain IRS compliance. When per diem payments do not exceed the federal rate, they are generally not taxable to the employee and do not require itemized receipts.

When This Page Helps

Travel reimbursement errors cause frustration for employees and compliance headaches for employers. This calculator ensures accurate per diem totals based on lodging and M&IE rates, automatically handles first and last day reductions (75% M&IE), and gives a clear trip total for budgeting and expense reporting.

How to Use the Inputs

1. Enter the daily lodging rate for your destination.
2. Enter the daily M&IE (meals and incidentals) rate.
3. Enter the total number of travel days.
4. The calculator applies 75% M&IE for first and last travel days.
5. View total lodging, total M&IE, and overall trip per diem.
6. Compare with GSA rates to ensure compliance and proper reimbursement.

Example Calculation

Tips & Best Practices

• GSA per diem rates change annually—usually on October 1 for the new fiscal year.
• First and last travel days receive only 75% of the M&IE rate.
• Lodging per diem covers the cost of the room only—taxes may be reimbursed separately.
• If meals are provided (e.g., conference meals), reduce M&IE accordingly.
• Per diem payments at or below federal rates are non-taxable and don't require receipts.
• For high-cost locations, check for special GSA rates that exceed standard amounts.

Understanding GSA Per Diem Rates

The GSA establishes per diem rates for approximately 400 designated high-cost locations across the continental United States. All other locations receive the standard CONUS rate. Rates consist of two components: a maximum lodging amount and a fixed M&IE allowance.

International Per Diem

For international travel, the Department of State establishes per diem rates that can vary dramatically by country and city. Rates for major cities like London, Tokyo, and Zurich can exceed $400/day for lodging alone, while developing nations may have rates under $100/day total.

Tax Implications

The IRS accountable plan rules require employees to substantiate travel with dates, locations, and business purpose. When per diem payments follow these rules and don't exceed federal rates, they are excluded from the employee's taxable income and are deductible by the employer.

Frequently Asked Questions

• What is M&IE?

  M&IE stands for Meals and Incidental Expenses. It covers breakfast, lunch, dinner, and incidentals like tips for service, laundry, and dry cleaning. The GSA sets M&IE rates for each location, ranging from $59 to $79 for most U.S. destinations.

• Are per diem payments taxable?

  If per diem payments are at or below the federal rate and the employee provides a proper expense report with dates and locations, the payments are not taxable. Payments exceeding the federal rate must be reported as taxable income.

• Why is the first/last day rate lower?

  The federal per diem standard provides 75% of the M&IE rate on the first and last day of travel because employees are typically not on travel status for the full day. Some employer policies may use different percentages or provide full rates.

• How do I find the per diem rate for my destination?

  Visit the GSA website (gsa.gov/perdiem) for domestic rates. Enter the city, state, or zip code for the specific rate. Rates are organized by county and can vary significantly even within the same state. The standard CONUS rate applies to locations without specific listings.

• What if my lodging exceeds the per diem rate?

  Under the federal system, actual lodging expenses above the per diem rate are the employee's responsibility unless a higher rate is approved by a supervisor. Many employers have policies for approving elevated rates in high-cost areas.

• Can employers set their own per diem rates?

  Yes, private employers can set per diem rates above, at, or below the GSA rates. However, using rates at or below the GSA maximum simplifies tax treatment, as no employee reporting is required and the payments are non-taxable.