IRS Announces Special Per Diem Rates Beginning October 1, 2022

per diem rates

October 04, 2022

The IRS recently released Notice 2022-44, detailing updated special per diem rates. The new rates are effective for the period beginning October 1, 2022 and ending September 30, 2023. These rates apply to the per diem allowances paid by employers to their employees in order to cover “ordinary and necessary business expenses incurred while traveling away from home.”

Details of Notice 2022-44 are as follows:

  • Special Transportation Industry Meal and Incidental Expenses Rates – The new per-diem rate for transportation industry taxpayers within the continental US is now $69; the rate for travel outside the continental US is now $74.
  • The Rate for the Incidental Expenses Only Deduction – These expenses are limited to tips given to hotel and ship staff, including baggage handlers. The per-diem rate remains at $5 per day.
  • The Rates and List of High-Cost Localities for Purposes of the High-Low Substantiation Method – The per-diem rate for travel to any high-cost locality is now $297 (with $74 allocated for meals), and the rate for travel to any other locality within the continental US is $204 (with $64 allocated for meals). See Notice 2022-44 for the list of high-cost localities.

For more details, check out this article from the Journal of Accountancy.