Per Diem (Standard Meal Allowance)

Per diem, which the IRS calls the standard meal allowance, is a federal daily meal rate set by travel location that a business traveler may deduct in place of actual meal receipts when away from home overnight.

Also called:

standard meal allowance, M&IE rate

In practice

Two things get missed constantly. First, you may use the meal allowance but not a lodging one: Publication 463 (2025) says there is no standard lodging equivalent and “your allowable lodging expense deduction is your actual cost.” Keep the motel receipt. Second, the allowance is not a free deduction — Topic 511 says “the deduction for business meals is generally limited to 50% of the unreimbursed cost.” Pub 463 confirms you may use the standard meal allowance “whether you are an employee or self-employed.” Rates vary by location and are published at GSA.gov/travel/plan-book/per-diem-rates. And it only applies when you’re away from your tax home long enough to need sleep or rest, so a Saturday show you drive home from doesn’t qualify. General education, not tax advice.

Why it matters

The meal allowance saves you a shoebox of gas-station receipts, but assuming a matching lodging per diem exists will cost you the motel deduction you actually paid for.

Go deeper

Read the full post:

Racing Mileage Deduction: What You Can Actually Write Off on the Tow Rig and Trailer

Sources

Topic No. 511, Business Travel Expenses (IRS) — IRS topic page defining travel away from home and stating the 50% limit on business meals.
Publication 463 (2025), Travel, Gift, and Car Expenses (IRS) — states the standard meal allowance is the federal M&IE rate, that employees and self-employed alike may use it, and that there is no equivalent standard lodging amount.
Publication 334 (2025), Tax Guide for Small Business (IRS) — small-business guide repeating that meal deductions “generally remain limited to 50% of such expenses.”