# Per diem (taxation)

> Daily allowance for meals and lodging on travel; tax-free up to the GSA/IRS limit with business purpose.

**URL:** https://quilometragem.com/glossary/per-diem-tax

**Summary:** Daily allowance for meals and lodging on travel; tax-free up to the GSA/IRS limit with business purpose.

- A per diem is a daily allowance covering meals, lodging, and incidentals while traveling away from the tax home.
- The IRS publishes per-city CONUS rates updated yearly.
- Payments up to the limit are tax-free under an accountable plan; excess becomes taxable wages.
- Per diem covers meals and lodging — distinct from the mileage rate, which covers the drive itself.

A per diem is a daily allowance covering meals, lodging, and incidentals while traveling away from the tax home. The IRS publishes per-city CONUS rates updated yearly. Payments up to the limit are tax-free under an accountable plan; excess becomes taxable wages. Per diem covers meals and lodging — distinct from the mileage rate, which covers the drive itself.