Per diem, defined
Per diem (Latin for "per day") is a flat daily amount that covers a business traveler's lodging and meals instead of reimbursing actual, itemized costs. In the U.S., the General Services Administration (GSA) publishes official per diem rates each fiscal year, and most employers use them as a tax-free benchmark.
A per diem has two parts: a lodging cap (per night) and a meals & incidental expenses (M&IE) allowance (per day). For FY2026, the standard continental-U.S. rate is $110 lodging and $68 M&IE; higher-cost cities get their own, larger rates.
How per diem works
Lodging is reimbursed up to the nightly cap based on your actual room cost. M&IE is paid as a flat daily figure — you don't submit meal receipts. Two rules always apply: the first and last day of travel are paid at 75% of M&IE, and any meal your employer or a conference provides is deducted from that day's allowance.
Why companies use per diem
Per diem simplifies expense reporting (no meal receipts), controls travel cost (a known cap per day), and stays tax-free when administered under an accountable plan. It's the backbone of most corporate travel policies.
Frequently asked questions
What does per diem mean?＋
Per diem is Latin for "per day" — a fixed daily allowance for lodging and meals on business travel, paid instead of itemized reimbursement.
How much is per diem per day?＋
It varies by city. The FY2026 U.S. standard is $110 for lodging and $68 for M&IE; high-cost cities are higher.
Do you need receipts for per diem?＋
No receipts are required for the M&IE (meals) portion. Lodging is reimbursed up to the cap based on the actual room cost.