Notice 2015-63 announces the 2015-2016 per diem rates for substantiating employees’ business expenses for lodging, meals and incidental expenses incurred while traveling away from home. The M&IE rates for the transportation industry increased from $59 to $63 for travel in the continental U.S. and from $65 to $68 outside the continental U.S. The incidental-expenses-only rate remains at $5 per day. The updated rates and list of high-cost locations apply to per diem allowances paid to employees after September 30, 2015.

For purposes of the high-low substantiation method, the per diem rates are $275 for travel to any high-cost locality and $185 for travel to any other locality within the US. The amount of the $275 high rate and $185 low rate that is treated as paid for meals is $68 for travel to any high-cost locality and $57 for travel to any other locality within the US.

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