Business travel can feel like a receipt scavenger hunt, but GSA per diem rates bring order to the chaos. It sets daily dollar limits for lodging, meals, and incidental expenses (M&IE) when you’re on official travel, known as temporary duty travel, in the Continental U.S. (CONUS). If you stay within the allowed amounts, you spend less time justifying costs and more time getting reimbursed correctly.
This matters for federal employees, contractors, and small businesses because per diem helps you plan a realistic travel budget before you book anything, in line with the Federal Travel Regulation. It also reduces awkward surprises like “Why wasn’t dinner reimbursed?” or “Why is the hotel partially out of pocket?”
Rates are published by the General Services Administration on GSA.gov and can change each fiscal year (FY runs October 1 to September 30). That FY detail matters when a trip crosses September into October, because the allowed rate may change mid-trip.
GSA Per Diem Rates: What They Are and What They Cover
GSA per diem rates are the government’s daily allowance limits for official travel expenses in the Continental U.S. Think of per diem as a spending “ceiling” for reimbursement of travel expenses. It’s not a bonus; it’s the maximum you can typically be reimbursed under your agency policy or contract.
Most travelers hear one number, but it really has two pieces. One is tied to where you sleep, the other follows you all day and covers meals plus an incidental expense. Together, they form the total daily cap for that location.
Here’s what per diem GSA typically covers:
- Lodging: A nightly maximum for the hotel. You’re reimbursed for actual costs up to this cap (if your hotel is $98 and the cap is $110, you get $98).
- Meals and Incidental Expenses (M&IE): A flat daily M&IE allowance for breakfast, lunch, and dinner plus meals and incidental expenses. No receipts required for M&IE.
Per diem also helps standardize travel budgets. Two federal travelers going to the same place in the same month should have the same allowance, even if their spending habits differ.
The Two Parts of Per Diem: Lodging and M&IE
Lodging operates on an “actual expenses up to the cap” system. If the CONUS lodging per diem is $110, that’s the maximum lodging amount allowed for that night. You’ll need receipts for lodging. Lodging taxes may be handled separately; federal employees should request a tax exemption certificate from hotels to exclude state and local taxes from their bills.
M&IE stands for Meals and incidental expenses. It’s a flat daily allowance covering meals and incidentals. According to the Federal Travel Regulation, “incidentals” specifically include fees and tips given to porters, baggage carriers, hotel staff, and staff on ships as an incidental expense. No receipts are required for M&IE.
Important M&IE rules:
- 75 percent rule: On the first and last day of travel, reimbursement is limited to 75 percent of the M&IE rate because you’re typically not in travel status for a full day. Example: if the M&IE rate is $68, the first and last day may be capped at $51.
- Meals provided: If a conference includes breakfast lunch and dinner, you must deduct those meals from your M&IE claim. GSA provides meal-by-meal breakdowns for this purpose.
- Day travel: For one-day travel over 12 hours without an overnight stay, you’re eligible for 75 percent of the M&IE rate.
Standard vs. High-Cost Areas: Why Location Changes the Rate
Not every ZIP code in the Continental U.S. gets its own special rate. GSA uses a standard CONUS rate for most places, and higher rates for non-standard areas (NSA), higher-cost locations. For FY 2026, GSA held rates at FY 2025 levels to meet cost-saving goals.
Here’s the standard CONUS baseline:
| Rate type | Lodging (per night) | M&IE (per day) | Total per day |
|---|---|---|---|
| Standard CONUS (FY 2026) | $110 | $68 | $178 |
High-cost areas (like Washington, DC and New York City) have higher rates determined by average daily rate for lodging caps in those cities, and many of the approximately 300 non-standard areas change by month. The per diem rate GSA publishes for the same city can differ in July versus January. You need the exact location and travel month to get the right number.
Important note: For travel to OCONUS destinations like Alaska, Hawaii, and U.S. territories, the Department of Defense sets per diem rates. For foreign travel, the Department of State establishes rates.
How GSA Sets Per Diem Rates and When They Change
GSA per diem rates published by the General Services Administration aren’t guessed; they’re set using actual market data from hotels and restaurants in CONUS. The General Services Administration conducts surveys and reviews lodging data, including average daily rate, to establish maximum reimbursement rates federal travelers can use for budgeting during temporary duty travel away from their official duty station.
Timing trips people up. Per diem rates follow the fiscal year, not the calendar year. “2026 rates” means FY 2026, effective October 1, 2025 through September 30, 2026. If you travel in January 2026, you’re already using FY 2026 rates.
For FY 2026, the M&IE tier system, which covers meals and incidental expense, ranges from $68 to $92 depending on location. Lodging gets a location and month-specific cap.
What this means: you don’t “negotiate” your per diem rate. You look it up by location and date, then follow your policy or contract as federal employees.
When Per Diem Isn’t Enough: The 300 Percent Rule
Sometimes standard per diem rates don’t cover actual costs, especially during major events or in areas with limited availability. Under the Federal Travel Regulation, federal employees can request actual expense allowance up to 300 percent of the applicable CONUS per diem rate with agency approval.
For example, if the total per diem (lodging + M&IE for breakfast, lunch, and dinner) for a location is $200, actual expense allowance could go up to $600 with proper justification and pre-approval. This requires documentation and is typically used when:
- No lodging is available within the lodging per diem
- Special events drive up costs
- Mission requirements necessitate specific locations
Using GSA Per Diem in Real Life: Federal Employees and Contractors
Per diem is simple on paper and messy in real travel. The key is knowing which rules apply to you.
Federal Employee Reimbursements: What Per Diem Means for Your Travel Voucher
Federal employees follow the Federal Travel Regulation (FTR) and agency travel policy. Key points:
- Receipts required: Always for lodging; for miscellaneous expenses like registration fee over $75. Meals and incidental expenses under M&IE are typically a flat rate without receipts
- Meals provided: If a conference includes breakfast lunch and dinner, deduct them from your M&IE claim
- Lodging approval: If you book above the lodging per diem, you might need justification, pre-approval, or you might pay the difference yourself
- Tax exemption: Request tax exemption certificates at hotels to avoid paying state/local lodging taxes
Can Contractors Claim Per Diem Reimbursements? Yes, But the Contract Decides
Many federal contracts for official travel reference gsa.gov per diem rates from the General Services Administration, but not all do. Some allow per diem, others require actual expenses, and some bake travel into a fixed price with no separate reimbursement.
Before you travel:
- Check the contract for travel clauses and invoicing instructions on reimbursement rates
- Verify whether receipts are required, especially for expenses beyond the M&IE flat allowance that covers meals and incidental expense
- Confirm whether the customer expects GSA per diem rates (CONUS) or an agency-specific schedule
- Don’t assume gsa per diem rules apply unless your contract specifies them
Important distinction: Some companies use IRS per diem rates for non-federal work. These differ from GSA rates and shouldn’t be confused.
Where to Find Current Rates on GSA.gov
The safest source for GSA per diem rates is GSA.gov, using the Per Diem Lookup tool and published tables. Federal travelers can rely on these tools for accurate reimbursement rates. When you look up a gsa per diem rate, confirm these details:
- Location: City and county matter for NSAs
- Month: Many high-cost non-standard areas change by month
- Fiscal year: FY runs Oct 1 to Sept 30
- Split the parts: Track lodging and M&IE separately
- Apply 75 percent: First and last day M&IE is often reduced
- Receipts: Keep lodging receipts and receipts for travel expenses over $75
Common mistake: Federal travelers mix CONUS and OCONUS tables. CONUS covers the Continental U.S. Alaska, Hawaii, and territories use Department of Defense rates. Foreign countries use Department of State rates.
Conclusion
Per diem works best when you treat it like a trip plan, not an afterthought. Remember the structure, lodging (actual up to cap) plus M&IE for meals and incidental expenses (flat allowance including incidental expense), and the fact that rates vary by location and sometimes by month in the Continental U.S., known as CONUS.
Per diem applies when you’re away from your official duty station.
For FY 2026, the standard CONUS rate stayed the same as FY 2025, but that doesn’t remove the need to confirm the right city, county, and month. If standard rates won’t cover your costs, remember the 300 percent actual expense allowance option exists with proper approval.
Before every trip:
- Check current GSA per diem rates on GSA.gov
- Request tax exemption certificates for lodging
- Keep required receipts (lodging always, miscellaneous over $75)
- Apply the 75 percent rule for first and last day of travel
- Deduct provided breakfast lunch and dinner from your M&IE claim
Contractors and small businesses should follow the contract first, then align company policy to what’s allowed for official travel. Plan smart, document thoroughly, and avoid reimbursement surprises.
