New IRS special per diem rates apply from October 1, 2026 under Notice 2026-60. The high-low substantiation method uses $329 for specified high-cost localities and $230 for other continental-U.S. localities. These are tools for documenting eligible business-travel expenses, not daily cash benefits paid by the IRS.
The notice identifies $86 of the high rate and $74 of the low rate as meals amounts under the relevant rules. It separately sets transportation-industry meals and incidental rates of $80 within the continental United States and $86 outside it, plus a $5 incidental-expenses-only rate. The different methods should not be stacked as if they are interchangeable allowances.
The high-cost list also changes. Tucson, San Mateo/Foster City/Belmont, Albuquerque and Cody are added, Panama City is removed, and several places have different seasonal periods. A city name alone may not establish which rate applies on a particular travel date.
Check the locality, travel dates, chosen method and employer reimbursement policy before preparing an expense claim. The notice has transition rules for late 2026 and still requires compliance with the applicable substantiation procedure. A published rate neither guarantees a deduction nor orders an employer to reimburse every employee that amount.