Out of State Lodging Rate 2025

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Employers can pay more or less than the standard per diem rates, but: Paying More: Any excess over the standard rate is taxable to the employee. Allocate 60% for lodging and 40% for meals. Deduct the standard meals and incidentals rate from the total per diem and treat the remainder as lodging.
Per diem (Latin for per day or for each day) or daily allowance is a specific amount of money that an organization gives an individual, typically an employee, per day to cover living expenses when travelling on the employers business.
Long and short is: its beneficial for many company drivers to take per diem as it lowers your taxes (in most cases). A big disadvantage is that it shows you having a lower total Adjusted Gross Income on your W-2 which can reduce how much money a lending institution will loan you.
GSA per diem reimbursement rates are made up of two components: a maximum lodging allowance and a meals and incidental expenses (MIE) allowance. The standard per diem rate for most locations within the contiguous United States (CONUS), covering approximately 2,600 counties, is $178 per day.
A per diem payment is not considered income by the IRS. Rather, it is a reimbursement for expenses. In this case, since it can be treated as a deduction on your tax return, the money is not taxable.
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A $ 100-a-day per diem means an employee receives a fixed daily allowance of $100 to cover specific travel-related expenses such as meals and incidentals.

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