Non-Standard Area per diem rates are the individually calculated federal reimbursement rates that apply to roughly 300 higher-cost cities and counties in the continental United States, each with its own lodging cap and Meals and Incidental Expenses allowance that replace the standard CONUS rate. New York City’s FY2026 lodging cap, for example, runs from $179 per night in winter to $342 in peak months, with a $92 daily M&IE allowance.1U.S. General Services Administration. FY 2026 Per Diem Rates for New York Whether a traveler is fully reimbursed depends less on the headline number than on the rules that surround it.
What Counts as a Non-Standard Area
GSA applies one standard per diem rate to most of the country. Any location where lodging market data shows costs consistently above that baseline becomes an NSA with its own rate. About 300 exist nationwide, and most are defined as a key city plus the surrounding county.2U.S. General Services Administration. Per Diem Rates If a destination is not explicitly listed as an NSA, the standard CONUS rate applies by default.
The rate that applies to a given trip is tied to the temporary duty location. When lodging is obtained outside the TDY area, the agency may authorize the alternate location’s rate if doing so benefits the government.3eCFR. 41 CFR Part 301-11 – Subsistence Expenses A hotel check-in after midnight counts toward the preceding calendar day.
The Two Parts of the Rate
Every NSA rate has a lodging maximum and an M&IE allowance, and the two work differently. Lodging reimburses the actual pre-tax room charge up to the cap, so a cheaper room means a smaller reimbursement. M&IE is paid as a flat daily allowance covering breakfast, lunch, dinner, and a $5 incidental piece for tips to hotel staff, baggage handlers, and similar service workers, regardless of what the traveler actually spends on food.4General Services Administration. Federal Travel Regulation
CONUS M&IE for FY2026 falls into five tiers: $68, $74, $80, $86, and $92. The $5 incidental amount stays constant across every tier.5U.S. General Services Administration. M&IE Breakdowns
What Sits Outside the Lodging Cap
Lodging taxes within CONUS are not part of the lodging cap. They are reimbursed separately as a miscellaneous travel expense, limited to taxes on the reimbursable lodging amount.6eCFR. 41 CFR 301-11.16 – Lodging Tax Reimbursement Foreign per diem rates already bake in lodging taxes, so no separate claim is allowed for international travel.
Laundry and dry cleaning are also outside the per diem allowance for CONUS trips. They are reimbursable as a miscellaneous expense only when the traveler has at least four consecutive nights of lodging on official travel.7eCFR. 41 CFR 301-11.31 – Laundry, Cleaning and Pressing of Clothing Expenses For foreign and non-foreign overseas travel, laundry is already in the per diem rate, so no separate claim applies.
First Day, Last Day, and Multi-Location Days
The full M&IE rate applies only to days spent entirely at the TDY location. On the first and last day of travel, federal employees receive 75 percent of the applicable rate.8U.S. General Services Administration. Frequently Asked Questions, Per Diem The percentage is based on the TDY location’s rate, not the home duty station. At New York City’s $92 tier, the first and last day allowance comes to $69.
When a single day spans multiple locations, the rule depends on duration. For travel of more than 12 hours but under 24 hours with no lodging required, the highest M&IE rate among the locations visited applies. For trips lasting 24 hours or more, the rate switches to the new TDY location’s rate at midnight.9eCFR. 41 CFR 301-11.102 – Applicable M&IE Rate
When the Government Provides Meals
If the government furnishes a meal, or a conference registration fee includes meals, travelers must subtract the value of each provided meal from their M&IE.3eCFR. 41 CFR Part 301-11 – Subsistence Expenses GSA sets specific deductions at each tier. At the $92 tier, the deductions are $23 for breakfast, $26 for lunch, and $38 for dinner. At the $68 tier, they are $16, $19, and $28.5U.S. General Services Administration. M&IE Breakdowns
Two exceptions matter. Complimentary hotel meals and meals provided by an airline or other common carrier do not trigger a deduction. Travelers can also claim the full M&IE if they could not eat a government-furnished meal because of medical requirements or religious beliefs, provided they requested approval in advance and made a reasonable effort to arrange alternatives.3eCFR. 41 CFR Part 301-11 – Subsistence Expenses On travel days, meal deductions come off the already-reduced 75 percent rate, but total deductions cannot push reimbursement below the $5 incidental amount.
When Hotel Costs Exceed the Lodging Cap
A major event, conference, or seasonal spike can leave a traveler unable to find a room within the per diem cap. Federal agencies have the authority to approve actual expense reimbursement up to 300 percent of the per diem rate when lodging is unavailable at the normal ceiling.8U.S. General Services Administration. Frequently Asked Questions, Per Diem This requires agency authorization before or during the trip. Booking an expensive room without approval and hoping to sort it out later usually does not work.
Nonconventional lodging is a second option when hotels are scarce. Short-term rental properties, college dormitories, and rooms in private homes all qualify for reimbursement under the Federal Travel Regulation when conventional lodging is in short supply.10eCFR. 41 CFR Part 301-11 Subpart A – General Rules Staying with friends or relatives works differently. The traveler can only be reimbursed for additional costs the host actually incurred, not a flat amount and not the price of a comparable hotel room.
Looking Up the Right Rate
GSA’s lookup tool accepts a city name, state, or zip code and returns the current fiscal year’s lodging and M&IE rates.2U.S. General Services Administration. Per Diem Rates Use the zip code of the primary work location when possible. A city that spans multiple counties can straddle two per diem zones, and the zip code pins the rate to the correct one.
If a search returns no individually listed rate, the standard CONUS rate applies. The tool also toggles between fiscal years, which matters for trips crossing October 1. A trip beginning September 28 and ending October 3 uses the old rates through September 30 and the new rates from October 1 forward.
How Rates Change Each Year
GSA aligns new rates with the federal fiscal year, which begins October 1. The rate-setting relies on average daily rate data from the lodging industry, sampled across midscale through upper-upscale hotels, with weekend rates excluded because federal travelers move mostly Monday through Thursday. Rates reflect seasonal variation, which is why some NSAs carry monthly lodging caps that shift over the year.2U.S. General Services Administration. Per Diem Rates Because the calculation is data-driven, an NSA’s cap can move noticeably from one fiscal year to the next when the local lodging market is trending.
Tax Treatment of Per Diem Payments
Under IRS rules, per diem payments that meet accountable plan requirements are excluded from an employee’s gross income. There is no income tax withholding and no payroll tax on the reimbursement. An accountable plan requires three things: a business connection for the expense, substantiation of the time, place, and business purpose of the trip, and return of any excess reimbursement within a reasonable period.11Internal Revenue Service. Publication 463 – Travel, Gift, and Car Expenses
When an employer pays more than the federal rate for a location, the excess is taxable wages. The allowable portion is reported under code L in box 12 of Form W-2, and the excess is included in box 1 as regular wages subject to withholding.11Internal Revenue Service. Publication 463 – Travel, Gift, and Car Expenses The common employer mistake is paying a flat company rate without checking whether it exceeds the federal cap for the specific city.
Private Employers and the High-Low Method
Private employers are not required to use GSA’s location-by-location rates. They can pay more or less.12Internal Revenue Service. Per Diem Rates Frequently Asked Questions Tax-free treatment, however, only extends up to the federal rate for that location. Anything above becomes taxable income.
Many private employers use the IRS high-low substantiation method to avoid tracking individual NSA rates. For the period beginning October 1, 2025, the high-cost locality rate is $319 per day ($86 for meals) and the rate for all other CONUS locations is $225 per day ($74 for meals).13Internal Revenue Service. Notice 2025-54 The tradeoff is precision. Some NSAs sit above or below what the two categories assign.
Self-Employed Travelers
Self-employed individuals can use the federal per diem rate to substantiate meal expenses while traveling for business, but not lodging. Lodging must be documented with actual receipts.12Internal Revenue Service. Per Diem Rates Frequently Asked Questions The M&IE per diem simplifies meal tracking, but hotel receipts remain non-negotiable for freelancers and independent contractors.