Per Diem

## Per Diem

Per diem (Latin for 'per day') is a daily allowance for business travel expenses. Instead of reimbursing actual receipts, employers pay a flat daily rate that simplifies expense reporting.

### US GSA Rates (2025)

The General Services Administration publishes per diem rates for domestic travel:
- **Lodging**: Varies by city ($98–$379/night).
- **M&IE (Meals & Incidental Expenses)**: $59–$79/day depending on location.
- **First and last travel days**: 75% of M&IE rate.

### International Rates

The US State Department publishes per diem rates for international travel. The UN, EU, and individual governments maintain their own schedules.

### Tax Treatment

In the US, per diem payments up to the GSA rate are not taxable to the employee and do not need to be reported as income. Amounts exceeding the GSA rate are taxable as wages. This treatment is similar in most countries that use per diem systems.