IRS Issues Federal ‘High-Low’ Per Diem Rates Effective October 1

The IRS released the optional “high-low” per diem rates for lodging expenses and meals and incidental expenses (M&IE) that may be used instead of the General Services Administration’s “actual” per diem rates for travel to locations within the continental U.S (CONUS).

The updated high-low rates apply for travel undertaken on or after October 1, 2024. Notice 2024-68 also lists the special federal M&IE per diem rates applicable to the transportation industry and the per diem rate for incidental expenses.

High-Low Rates

The “high” rate for lodging expenses and M&IE increases to $319 (from $309) for travel to any high-cost locality, while the “low” rate increases to $225 (from $214) for travel to any other locality within CONUS. The rates for M&IE increase to $86 (from $74) for high-cost localities and to $74 (from $64) for any other locality within CONUS.

The notice lists high-cost localities with a federal per diem rate of $272 or more for all of the calendar year or the portion of the calendar year specified. A full listing of the locations is in the October issue of Payroll Currently (Issue 10, Vol. 32).

To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!

Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Senior Manager of Payroll Information Resources for PayrollOrg.