M&IE per diem: Meaning and rates
When you travel for work, your company may give you a daily allowance for business-related costs. This is called a per diem. Per diem payments often cover eligible traveling expenses like lodging and rentals as well as something commonly known as M&IE.
Read on to learn about the types of expenses included in M&IE and how much it might typically cover.
Key takeaways
- M&IE covers meals and incidental expenses, which includes things like tips on meals and travel.
- The standard federal M&IE rate for government workers is $59 per day.
- Other organizations may follow the federal per diem rates, but they don’t have to.
What does M&IE mean?
M&IE stands for “meals and incidental expenses.” This category of per diem payments covers things like:
- Breakfast, lunch and dinner for each day of a business trip
- Dry cleaning and laundry services
- Room service
- Fees and tips for travel service providers like taxi drivers, luggage carriers and food servers
How do M&IE per diem payments work?
Per diem payment methods vary by employer. Some companies reimburse employees when they return from their travels. Other companies issue payments before their employees leave.
And some companies may give their employees business credit cards to use for travel expenses.
What are the M&IE per diem rates?
The U.S. General Services Administration (GSA) sets per diem rates for government workers traveling within the continental U.S. and the District of Columbia. Some businesses refer to these allowances for their employees. Others choose to pay more or less than the federal rate.
Standard M&IE per diem payments are usually tax-exempt. But if the reimbursement is more than the federal rate, it’s typically subject to income tax.
Federal M&IE per diem allowances
The M&IE per diem rates set by the GSA vary by location and are reset every year on Oct. 1. Depending on where you’re traveling within the continental U.S., the daily maximum for M&IE is $59-$79 for a full day of travel. For the first and last day of travel, the maximum allowance is three-quarters the standard daily rate.
You can find the specific M&IE total for where you’re traveling on the GSA’s website. But for a quick idea, the chart below shows how the 2023 M&IE allowances break down during the day for federal employees traveling in the continental U.S., whichever amount they qualify for.
| M&IE total per day | Breakfast | Lunch | Dinner | Incidentals | First and last day of travel |
| $59 | $13 | $15 | $26 | $5 | $44.25 |
| $64 | $14 | $16 | $29 | $5 | $48 |
| $69 | $16 | $17 | $31 | $5 | $51.75 |
| $74 | $17 | $18 | $34 | $5 | $55.50 |
| $79 | $18 | $20 | $36 | $5 | $59.25 |
M&IE per diem payment FAQ
Here are answers to some common questions about M&IE:
Are there separate M&IE rates for foreign travel?
There are different federal rates for M&IE related to business travel outside of the continental U.S. The U.S. Department of Defense sets M&IE rates for Alaska, Hawaii and other U.S. territories. The U.S. Department of State sets the rates for foreign travel.
Do I need to pay taxes on M&IE per diem payments?
Typically, the per diem payments you get from your employer for meals and incidentals related to a business trip aren’t considered income, so they are tax-exempt. An exception to this is if your company pays you more than the federal rate. Then, the excess amount is subject to income tax.
Why do some employers pay more than the federal per diem rate?
Any company may use the federal per diem rates as a reference for what to pay their employees or even as a guide to plan their travel budgets. But they don’t have to follow the rates. They may opt to pay more or less than the federal rate if they think it’s too little or too much for the specific trip.
Does the federal M&IE meal allowance include taxes and tips?
Taxes and tips for restaurant servers are factored into the daily M&IE allowance.
M&IE rates in a nutshell
Each company has its own M&IE per diem policy that may or may not look like the federal government’s. So it’s a good idea to understand what your employer offers before setting off on a work trip.
If you travel frequently for work, a travel credit card can be a good way to earn rewards on any out-of-pocket expenses. Learn more about travel cards from Capital One.
