The IRS updated the special per diem rates businesses can use for travel away from home. Starting Oct. 1, the high-low method moves to $329 for high-cost locations and $230 for other locations inside the continental U.S.
That is not a dramatic tax law rewrite. It is the kind of small annual change that quietly breaks old reimbursement policies, stale employee handbooks, and client spreadsheets.
The New Rates Start Oct. 1
The updated rates apply for the period from Oct. 1, 2026, through Sept. 30, 2027.
Under the high-low substantiation method, the per diem rate is $329 for travel to a high-cost locality and $230 for travel to any other location within CONUS.
Those numbers are up from the prior year by $10 and $5. It is not huge, but travel-heavy clients will notice when employees submit trips under the old policy.
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