© 2026 American Payroll Institute, Inc.
October 2, 2026 Volume 34, Issue 10
Federal Per Diem Rates Updated for Fiscal Year 2027
The General Services Administration (GSA) issued its
annual updated list of federal maximum per diem rates
for travel to locations within the continental United States
(CONUS). The new rates are effective for travel undertaken
on or after October 1, 2026 [91 F.R. 57616, 9-10-26].
GSA per diem rates
The federal per diem rate is a combination of the lodging
expense rate and the meal and incidental expense (M&IE)
rate for the locality of travel. For travel within CONUS, the per
diem rates published by the GSA may be used to substantiate
certain travel expenses.
Instead of requiring employees to provide detailed
substantiation of business travel expenses, employers may
provide reimbursement in the form of a per diem allowance
for each day of travel (see The Payroll Source®, §3.3-5). The per
diem allowance is deemed substantiated so long as it does
not exceed the federal per diem rates and the employee
substantiates the time, place, and business purpose. Per diem
allowances that are equal to or less than the federal rates for
the locality of travel are excludable from income, while those
exceeding the federal rates are subject to employment taxes
to the extent of the difference between the allowance and
the federal rate.
What’s new for fiscal year (FY) 2027. The standard CONUS
M&IE rate will remain $68. The M&IE rates for non-standard
areas (NSAs) also will not change and remain $68, $74, $80,
$86, and $92.
For all locations within CONUS not shown on the list, the
lodging per diem will increase to $113 (from $110), the M&IE
rate will remain $68, and the combined maximum standard
per diem rate will increase to $181 (from $178). The combined
per diem rates for the listed NSA locations range from a low of
$181 (off-season) for several locations, to a high of $591 (peak
season) for Park City, Utah.
NSA location changes. For FY 2027, there are 295 NSAs.
Allentown, Pa., was an NSA in FY 2026 and has been moved
into the standard CONUS rate category.
OCONUS per diem rates
The Department of Defense updates the per diem lodging
and M&IE rates for travel in non-foreign areas outside of the
continental U.S. (OCONUS), including Alaska, Hawaii, Puerto
Rico, and the U.S. territories. Rate revisions, which are made
via Civilian Bulletins on an irregular basis, are announced in
the Federal Register.
Foreign per diem rates
The Department of State updates the per diem lodging
and M&IE rates for travel in foreign areas. The rates are
updated monthly, with many of the changes being effective
either January 1 or July 1. The rates are organized in a table
alphabetically by country name and include effective dates
as well as the beginning and end dates for seasons (where
applicable).
The rates may be found on the State Department Office
of Allowances’ Foreign Per Diem Rates webpage. Note that
these rate revisions are not announced in the Federal Register.
Federal Per Diem Rates Updated for Fiscal Year 2027.......................1
IRS Issues Federal ‘High-Low’ Per Diem Rates Effective
October 1....................................................................................................2
Employers Should Review Tip Policies to Ensure Compliance.......5
Reminder: FIRE Will Be Retired, Users Must Transition to IRIS for
2027. ..............................................................................................................6
DOL Publishes Three FLSA Opinion Letters...........................................7
Register Now to Attend PayrollOrg’s Year-End Course. ....................8
OCSE Releases Latest IWO and Instructions With Changes. ..........8
SSA to Launch Employer Signature PINs for Upcoming Filing
Season...........................................................................................................8
Daylight Saving Time Ends November 1...............................................9
SSA Announces Modernized W-2/W-2c Online Application..........9
Contacts Change for SSA Regional Employer Service Liaison
Officers..........................................................................................................9
Treasury Upholds SIFL Method for Employer-Provided Flights.....9
DOL Updates, Renames Its Timesheet App. ......................................10
District Court Dismisses Employees’ Case to Stop IRS
Lock-In Letters....................................................................................... 10
Court Rules Refund Claim Must Be Filed With IRS Before Filing a
Lawsuit....................................................................................................... 11
Court Postpones Rule for Fixed Admission Period for F, J, and I
Visas. ...........................................................................................................11
USCIS Updates TPS Guidance for El Salvador, Sudan, Ukraine. ....12
IRS Issues Temporary Rules for Auto Enrollment in Trump
Accounts.................................................................................................... 13
Capitol Hill Update...................................................................................... 13
State and Local Highlights. ........................................................15
PayrollOrg Backs Mobile Workforce State Income Tax Bill. .....17
PayrollOrg Comments on Proposed Trump Account
Regulations. ..............................................................................17
PayrollOrg Member Appointed to IRS Advisory Committee. .....17
IRS Recognizes Payroll Professionals During NPW. ..............18
October 2, 2026 Volume 34, Issue 10
Federal Per Diem Rates Updated for Fiscal Year 2027
The General Services Administration (GSA) issued its
annual updated list of federal maximum per diem rates
for travel to locations within the continental United States
(CONUS). The new rates are effective for travel undertaken
on or after October 1, 2026 [91 F.R. 57616, 9-10-26].
GSA per diem rates
The federal per diem rate is a combination of the lodging
expense rate and the meal and incidental expense (M&IE)
rate for the locality of travel. For travel within CONUS, the per
diem rates published by the GSA may be used to substantiate
certain travel expenses.
Instead of requiring employees to provide detailed
substantiation of business travel expenses, employers may
provide reimbursement in the form of a per diem allowance
for each day of travel (see The Payroll Source®, §3.3-5). The per
diem allowance is deemed substantiated so long as it does
not exceed the federal per diem rates and the employee
substantiates the time, place, and business purpose. Per diem
allowances that are equal to or less than the federal rates for
the locality of travel are excludable from income, while those
exceeding the federal rates are subject to employment taxes
to the extent of the difference between the allowance and
the federal rate.
What’s new for fiscal year (FY) 2027. The standard CONUS
M&IE rate will remain $68. The M&IE rates for non-standard
areas (NSAs) also will not change and remain $68, $74, $80,
$86, and $92.
For all locations within CONUS not shown on the list, the
lodging per diem will increase to $113 (from $110), the M&IE
rate will remain $68, and the combined maximum standard
per diem rate will increase to $181 (from $178). The combined
per diem rates for the listed NSA locations range from a low of
$181 (off-season) for several locations, to a high of $591 (peak
season) for Park City, Utah.
NSA location changes. For FY 2027, there are 295 NSAs.
Allentown, Pa., was an NSA in FY 2026 and has been moved
into the standard CONUS rate category.
OCONUS per diem rates
The Department of Defense updates the per diem lodging
and M&IE rates for travel in non-foreign areas outside of the
continental U.S. (OCONUS), including Alaska, Hawaii, Puerto
Rico, and the U.S. territories. Rate revisions, which are made
via Civilian Bulletins on an irregular basis, are announced in
the Federal Register.
Foreign per diem rates
The Department of State updates the per diem lodging
and M&IE rates for travel in foreign areas. The rates are
updated monthly, with many of the changes being effective
either January 1 or July 1. The rates are organized in a table
alphabetically by country name and include effective dates
as well as the beginning and end dates for seasons (where
applicable).
The rates may be found on the State Department Office
of Allowances’ Foreign Per Diem Rates webpage. Note that
these rate revisions are not announced in the Federal Register.
Federal Per Diem Rates Updated for Fiscal Year 2027.......................1
IRS Issues Federal ‘High-Low’ Per Diem Rates Effective
October 1....................................................................................................2
Employers Should Review Tip Policies to Ensure Compliance.......5
Reminder: FIRE Will Be Retired, Users Must Transition to IRIS for
2027. ..............................................................................................................6
DOL Publishes Three FLSA Opinion Letters...........................................7
Register Now to Attend PayrollOrg’s Year-End Course. ....................8
OCSE Releases Latest IWO and Instructions With Changes. ..........8
SSA to Launch Employer Signature PINs for Upcoming Filing
Season...........................................................................................................8
Daylight Saving Time Ends November 1...............................................9
SSA Announces Modernized W-2/W-2c Online Application..........9
Contacts Change for SSA Regional Employer Service Liaison
Officers..........................................................................................................9
Treasury Upholds SIFL Method for Employer-Provided Flights.....9
DOL Updates, Renames Its Timesheet App. ......................................10
District Court Dismisses Employees’ Case to Stop IRS
Lock-In Letters....................................................................................... 10
Court Rules Refund Claim Must Be Filed With IRS Before Filing a
Lawsuit....................................................................................................... 11
Court Postpones Rule for Fixed Admission Period for F, J, and I
Visas. ...........................................................................................................11
USCIS Updates TPS Guidance for El Salvador, Sudan, Ukraine. ....12
IRS Issues Temporary Rules for Auto Enrollment in Trump
Accounts.................................................................................................... 13
Capitol Hill Update...................................................................................... 13
State and Local Highlights. ........................................................15
PayrollOrg Backs Mobile Workforce State Income Tax Bill. .....17
PayrollOrg Comments on Proposed Trump Account
Regulations. ..............................................................................17
PayrollOrg Member Appointed to IRS Advisory Committee. .....17
IRS Recognizes Payroll Professionals During NPW. ..............18
