MI&E stands for Meals and Incidental Expenses, a flat daily allowance that reimburses business travelers for food and small service tips instead of making them itemize every receipt. The federal government sets the rates through the General Services Administration, and for fiscal year 2026 the standard domestic MI&E rate is $68 per day, rising to as much as $92 in higher-cost cities.1U.S. General Services Administration. GSA Releases FY 2026 CONUS Per Diem Rates for Federal Travelers The amount is tied to where you spend the night, not what you actually ate.
What MI&E Covers
The meal portion is what it sounds like: breakfast, lunch, dinner, the taxes on those meals, and tips left at restaurants. The incidentals piece is narrower than most travelers assume. It covers fees and tips paid to porters, baggage carriers, bellhops, and hotel housekeeping staff, and nothing else.2U.S. General Services Administration. Frequently Asked Questions, Per Diem
Several costs that feel like they should belong to MI&E don’t. Taxi fares and ride-shares are reimbursed separately, even when the ride is to a restaurant.2U.S. General Services Administration. Frequently Asked Questions, Per Diem Lodging has its own per diem rate. Airfare, rental cars, and parking sit outside the per diem framework entirely. Laundry and dry cleaning aren’t part of MI&E either, though agencies sometimes reimburse them separately on longer trips.
FY 2026 MI&E Rates and Tiers
GSA sets rates for the continental United States and updates them each fiscal year beginning October 1. For FY 2026, the agency held rates at the same levels as FY 2025.1U.S. General Services Administration. GSA Releases FY 2026 CONUS Per Diem Rates for Federal Travelers Any domestic location that hasn’t been designated a higher-cost area gets the $68 standard rate; more expensive destinations fall into one of four elevated tiers.3U.S. General Services Administration. Per Diem Rates
Each tier is split into a per-meal breakdown, which matters when you have to subtract a meal that was provided to you:4U.S. General Services Administration. M&IE Breakdowns
- $68 tier: $16 breakfast, $19 lunch, $28 dinner, $5 incidentals
- $74 tier: $18 breakfast, $20 lunch, $31 dinner, $5 incidentals
- $80 tier: $20 breakfast, $22 lunch, $33 dinner, $5 incidentals
- $86 tier: $22 breakfast, $23 lunch, $36 dinner, $5 incidentals
- $92 tier: $23 breakfast, $26 lunch, $38 dinner, $5 incidentals
The incidentals portion stays at $5 across every tier. Tipping a bellhop doesn’t scale with restaurant prices the way a dinner tab does.
Rates for Alaska, Hawaii, and U.S. territories are set by the Department of Defense, while the Department of State handles foreign countries. Those rates can run considerably higher and use a different meal split.3U.S. General Services Administration. Per Diem Rates
The 75 Percent Rule for Travel Days
On the first and last calendar days of a trip, you receive 75 percent of the applicable MI&E rate, not the full amount. The same 75 percent applies to any trip that runs more than 12 hours but less than 24.5eCFR. 41 CFR Part 301-11 – Subsistence Expenses It doesn’t matter what time you actually left home or got back. It’s a flat rule.
In practice, if your destination carries the $80 rate, your first and last day allowance is $60. Any full day in between is reimbursed at the complete $80. GSA publishes the pre-calculated 75 percent amounts so there’s no rounding dispute.4U.S. General Services Administration. M&IE Breakdowns
When a Meal Is Provided
If a conference registration includes lunch, or your agency furnishes breakfast at a training session, you have to subtract the value of that meal from your daily MI&E. The amount to subtract comes from the per-meal breakdown for your destination’s tier.5eCFR. 41 CFR Part 301-11 – Subsistence Expenses At the $74 tier, a provided lunch reduces your day by $20, leaving $54.
Two exceptions keep this workable. A complimentary hotel breakfast doesn’t count as a provided meal, and meals served by the carrier on a plane or train don’t count either.5eCFR. 41 CFR Part 301-11 – Subsistence Expenses And no matter how many meals get deducted, you still receive the $5 incidentals portion.
Agencies can waive the deduction when a medical dietary need or religious requirement kept you from eating the provided meal, as long as you requested approval before the trip and tried to arrange an alternative.5eCFR. 41 CFR Part 301-11 – Subsistence Expenses
Tax Treatment
Per diem payments, MI&E included, stay out of your taxable wages if two conditions are met: the payment doesn’t exceed the applicable federal rate, and you submit an expense report showing the dates, location, and business purpose of the travel.6Internal Revenue Service. Per Diem Payments Frequently Asked Questions The IRS calls this arrangement an accountable plan.
An accountable plan has three requirements: the expense must have a business connection, you must account for it to your employer within a reasonable time, and you must return any excess payment.7Internal Revenue Service. Publication 463 – Travel, Gift, and Car Expenses The IRS treats accounting within 60 days of the expense and returning excess within 120 days as reasonable.
Anything paid above the federal rate becomes taxable wages, subject to income tax withholding and employment taxes.6Internal Revenue Service. Per Diem Payments Frequently Asked Questions The same is true when an employer pays a flat per diem without requiring any expense report. Getting this wrong creates payroll tax exposure for the employer, not just the traveler.
Private-Sector and Self-Employed Use
Private employers aren’t required to follow the federal rates. They can pay more or less. The GSA amount just sets the tax-free ceiling: at or below it, the payment is not taxed; above it, the excess becomes taxable income.6Internal Revenue Service. Per Diem Payments Frequently Asked Questions Many private companies adopt the federal schedule outright because it removes any tax ambiguity.
Self-employed travelers can use the federal per diem for meals, but not for lodging. Lodging still has to be tracked with actual receipts.6Internal Revenue Service. Per Diem Payments Frequently Asked Questions Using the MI&E rate spares you from keeping individual restaurant receipts, but you still need a clear record of dates, destinations, and business purpose.
Claiming Your Reimbursement
Start by looking up the correct rate for each destination using the GSA per diem tool, which accepts a city or zip code and returns the MI&E allowance along with the lodging rate.3U.S. General Services Administration. Per Diem Rates Apply the 75 percent reduction to your first and last days, subtract any meals that were provided, and enter your daily totals in whatever expense system your organization uses.
Under the per diem method, you generally don’t need receipts for individual meals. The IRS requires documentary evidence for expenses of $75 or more, and lodging always requires a receipt regardless of cost. What you do need is a clear travel record submitted within a reasonable time after the trip. Accounting staff verify the claimed rates against the official GSA or State Department tables for your dates and destinations before releasing the payment.