Notice 2025-54, 2025-41 I.R.B. 479

SECTION 1. PURPOSE

This annual notice provides the 2025-2026 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, specifically (1) the special transportation industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method.

SECTION 2. BACKGROUND

Rev. Proc. 2019-48, 2019-51 I.R.B. 1392 (or successor), provides rules for using a per diem rate to substantiate, under § 274(d) of the Internal Revenue Code and § 1.274-5 of the Income Tax Regulations, the amount of ordinary and necessary business expenses paid or incurred while traveling away from home. Taxpayers using the rates and list of high-cost localities provided in this notice must comply with Rev. Proc. 2019-48 (or successor). Notice 2024-68, 2024-41 I.R.B. 729, provides the rates and list of high-cost localities for the period October 1, 2024, to September 30, 2025.

SECTION 3. SPECIAL M&IE RATES FOR TRANSPORTATION INDUSTRY

The special M&IE rates for taxpayers in the transportation industry are $80 for any locality of travel in the continental United States (CONUS) and $86 for any locality of travel outside the continental United States (OCONUS). See section 4.04 of Rev. Proc. 2019-48 (or successor).

SECTION 4. RATE FOR INCIDENTAL EXPENSES ONLY DEDUCTION

The rate for any CONUS or OCONUS locality of travel for the incidental expenses only deduction is $5 per day. See section 4.05 of Rev. Proc. 2019-48 (or successor).

SECTION 5. HIGH-LOW SUBSTANTIATION METHOD

1. Annual high-low rates. For purposes of the high-low substantiation method, the per diem rates in lieu of the rates described in Notice 2024-68 (the per diem substantiation method) are $319 for travel to any high-cost locality and $225 for travel to any other locality within CONUS. The amount of the $319 high rate and $225 low rate that is treated as paid for meals for purposes of § 274(n) is $86 for travel to any high-cost locality and $74 for travel to any other locality within CONUS. See section 5.02 of Rev. Proc. 2019-48 (or successor). The per diem rates in lieu of the rates described in Notice 2024-68 (the meal and incidental expenses only substantiation method) are $86 for travel to any high-cost locality and $74 for travel to any other locality within CONUS.

2. High-cost localities. The following localities have a federal per diem rate of $272 or more, and are high-cost localities for the specified portion of the calendar year:

Key City

County or Other Defined Location

Portion of Calendar Year

Alabama

Gulf Shores

Baldwin

June 1 – July 31

Arizona

Phoenix/Scottsdale

Maricopa

February 1 – March 31

Sedona

City limits of Sedona

October 1 – December 31 and March 1 – September 30

California

Los Angeles

Los Angeles, Orange, and Ventura, and Edwards AFB, less the city of Santa Monica

October 1 – September 30

Mammoth Lakes

Mono

December 1 – March 31

Monterey

Monterey

October 1 – September 30

Napa

Napa

October 1 – November 30 and February 1 – September 30

Palm Springs

Riverside

October 1 – April 30

San Diego

San Diego

October 1 – September 30

San Francisco

San Francisco

October 1 – September 30

San Luis Obispo

San Luis Obispo

June 1 – July 31

Santa Barbara

Santa Barbara

October 1 – September 30

Santa Monica

City limits of Santa Monica

October 1 – September 30

South Lake Tahoe

El Dorado

December 1 – March 31

Sunnyvale/Palo Alto/San Jose

Santa Clara

October 1 – September 30

Yosemite National Park

Mariposa

January 1 – April 30

Colorado

Aspen

Pitkin

October 1 – September 30

Denver/Aurora

Denver, Adams, Arapahoe, and Jefferson

October 1 – October 31 and April 1 – September 30

Silverthorne/Breckenridge

Summit

December 1 – March 31

Steamboat Springs

Routt

December 1 – March 31

Telluride

San Miguel

October 1 – September 30

Vail

Eagle

October 1 – September 30

Delaware

Lewes

Sussex

June 1 – August 31

District of Columbia

Washington, D.C. (also the cities of Alexandria, Falls Church, and Fairfax, and the counties of Arlington and Fairfax, in Virginia; and the counties of Montgomery and Prince George’s in Maryland) (See also Maryland and Virginia)

October 1 – September 30

Florida

Boca Raton/Delray Beach/Jupiter

Palm Beach and Hendry

January 1 – April 30

Bradenton

Manatee

February 1 – March 31

Cocoa Beach

Brevard

February 1 – March 31

Fort Lauderdale

Broward

January 1 – April 30

Fort Myers

Lee

January 1 – March 31

Fort Walton Beach/DeFuniak Springs

Okaloosa and Walton

June 1 – July 31

Gulf Breeze

Santa Rosa

June 1 – July 31

Key West

Monroe

October 1 – September 30

Miami

Miami-Dade

December 1 – May 31

Naples

Collier

December 1 – April 30

Panama City

Bay

June 1 – July 31

Sarasota

Sarasota

February 1 – April 30

Sebring

Highlands

February 1 – March 31

Stuart

Martin

February 1 – March 31

Tampa/St. Petersburg

Pinellas and Hillsborough

February 1 – April 30

Vero Beach

Indian River

December 1 – April 30

Georgia

Atlanta

Fulton and DeKalb

January 1 – March 31

Jekyll Island/Brunswick

Glynn

March 1 – July 31

Idaho

Boise

Ada

October 1 – October 31 and June 1 – September 30

Coeur d’Alene

Kootenai

June 1 – August 31

Sun Valley/Ketchum

Blaine and Elmore

December 31 – March 31 and June 1 – September 30

Illinois

Chicago

Cook and Lake

October 1 – November 30 and April 1 – September 30

Maine

Bar Harbor/Rockport

Hancock and Knox

October 1 – October 31 and May 1 – September 30

Kennebunk/Kittery/Sanford

York

July 1 – August 31

Portland

Cumberland and Sagadahoc

October 1 – October 31 and June 1 – September 30

Maryland

Ocean City

Worcester

June 1 – August 31

Washington, D.C. Metropolitan Area

Montgomery and Prince George’s

October 1 – September 30

Massachusetts

Boston/Cambridge

Suffolk and city of Cambridge

October 1 – September 30

Falmouth

City limits of Falmouth

July 1 – August 31

Hyannis

Barnstable less the city of Falmouth

July 1 – August 31

Martha’s Vineyard

Dukes

October 1 – September 30

Nantucket

Nantucket

June 1 – September 30

Michigan

Mackinac Island

Mackinac

July 1 – August 31

Petoskey

Emmet

June 1 – August 31

Traverse City

Grand Traverse

July 1 – August 31

Minnesota

Duluth

St. Louis

October 1 – October 31 and June 1 – September 30

Montana

Big Sky/West Yellowstone/Gardiner

Gallatin and Park

June 1 – September 30

Kalispell/Whitefish

Flathead

July 1 – September 30

New Jersey

Toms River

Ocean

July 1 – August 31

New York

Glens Falls

Warren

July 1 – August 31

Lake Placid

Essex

July 1 – August 31

New York City

Bronx, Kings, New York, Queens, and Richmond

October 1 – December 31 and March 1 – September 30

Saratoga Springs/Schenectady

Saratoga and Schenectady

July 1 – August 31

North Carolina

Kill Devil Hills

Dare

June 1 – August 31

Oregon

Bend

Deschutes

June 1 – August 31

Eugene/Florence

Lane

June 1 – July 31

Seaside

Clatsop

July 1 – August 31

Pennsylvania

Hershey

Hershey

June 1 – August 31

Philadelphia

Philadelphia

October 1 – November 30 and April 1 – September 30

Rhode Island

Jamestown/Middletown/Newport

Newport

October 1 – October 31 and June 1 – September 30

South Carolina

Charleston

Charleston, Berkeley, and Dorchester

October 1 – September 30

Hilton Head

Beaufort

March 1 – August 31

Tennessee

Nashville

Davidson

October 1 – September 30

Utah

Moab

Grand

October 1 – October 31, March 1 – June 30, and September 1 – September 30

Park City

Summit

October 1 – September 30

Vermont

Burlington

Chittenden

October 1 – October 31 and May 1 – September 30

Manchester

Bennington

October 1 – October 31 and August 1 – September 30

Montpelier

Washington

October 1 – October 31 and August 1 – September 30

Virginia

Virginia Beach

City of Virginia Beach

June 1 – August 31

Wallops Island

Accomack

July 1 – August 31

Washington, D.C. Metropolitan Area

Cities of Alexandria, Falls Church, and Fairfax; counties of Arlington and Fairfax

October 1 – September 30

Washington

Port Angeles/Port Townsend

Clallam and Jefferson

July 1 – August 31

Seattle

King

October 1 – September 30

Wyoming

Jackson/Pinedale

Teton and Sublette

October 1 – September 30

3. Changes in high-cost localities. There are no changes in the list of high-cost localities in this notice from the list of high-cost localities in section 5 of Notice 2024-68.

SECTION 6. EFFECTIVE DATE

This notice is effective for per diem allowances for lodging, meal and incidental expenses, or for meal and incidental expenses only, that are paid to any employee on or after October 1, 2025, for travel away from home on or after October 1, 2025. For purposes of computing the amount allowable as a deduction for travel away from home, this notice is effective for meal and incidental expenses or for incidental expenses only paid or incurred on or after October 1, 2025. See sections 4.06 and 5.04 of Rev. Proc. 2019-48 (or successor) for transition rules for the last 3 months of calendar year 2025.

SECTION 7. EFFECT ON OTHER DOCUMENTS

Notice 2024-68 is superseded.

DRAFTING INFORMATION

The principal author of this notice is C. Dylan Durham of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this notice, contact Mr. Durham at 202-317-7005 (not a toll-free number).