n-21-52.pdf

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2021-2022 Special Per Diem Rates

Notice 2021-52

SECTION 1. PURPOSE
This annual notice provides the 2021-2022 special per diem rates for taxpayers to
use in substantiating the amount of ordinary and necessary business expenses incurred
while traveling away from home, specifically (1) the special transportation industry meal
and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only
deduction, and (3) the rates and list of high-cost localities for purposes of the high-low
substantiation method. This notice also modifies Notice 2020-71, 2020-40 I.R.B. 786, to
change the portion of the year Sedona, Arizona is a high-cost locality under section 5 of
Notice 2020-71.
SECTION 2. BACKGROUND
Rev. Proc. 2019-48, 2019-51 I.R.B. 1392 (or successor), provides rules for using a
per diem rate to substantiate, under § 274(d) of the Internal Revenue Code and
§ 1.274-5 of the Income Tax Regulations, the amount of ordinary and necessary
business expenses paid or incurred while traveling away from home. Taxpayers using

the rates and list of high-cost localities provided in this notice must comply with Rev.
Proc. 2019-48 (or successor). Notice 2020-71, as modified by this notice, provides the
rates and list of high-cost localities for the period October 1, 2020, to September 30,
2021.
SECTION 3. SPECIAL M&IE RATES FOR TRANSPORTATION INDUSTRY
The special M&IE rates for taxpayers in the transportation industry are $69 for any
locality of travel in the continental United States (CONUS) and $74 for any locality of
travel outside the continental United States (OCONUS). See section 4.04 of Rev. Proc.
2019-48 (or successor).
SECTION 4. RATE FOR INCIDENTAL EXPENSES ONLY DEDUCTION
The rate for any CONUS or OCONUS locality of travel for the incidental expenses
only deduction is $5 per day. See section 4.05 of Rev. Proc. 2019-48 (or successor).
SECTION 5. HIGH-LOW SUBSTANTIATION METHOD
1. Annual high-low rates. For purposes of the high-low substantiation method, the
per diem rates in lieu of the rates described in Notice 2020-71 (the per diem
substantiation method) are $296 for travel to any high-cost locality and $202 for travel to
any other locality within CONUS. The amount of the $296 high rate and $202 low rate
that is treated as paid for meals for purposes of § 274(n) is $74 for travel to any high-
cost locality and $64 for travel to any other locality within CONUS. See section 5.02 of
Rev. Proc. 2019-48 (or successor). The per diem rates in lieu of the rates described in
Notice 2020-71 (the meal and incidental expenses only substantiation method) are $74
for travel to any high-cost locality and $64 for travel to any other locality within CONUS.
2. High-cost localities. The following localities have a federal per diem rate of $249

or more, and are high-cost localities for the specified portion of the calendar year.

Key City
County or Other
Defined Location
Portion of Calendar Year

Arizona
Sedona City Limits of Sedona
October 1 – December 31,
March 1 – April 30, and
September 1 – September 30

California
Los Angeles
Los Angeles, Orange, Ventura,
Edwards AFB less the city of
Santa Monica
October 1 - October 31 and
January 1 - September 30
Mill Valley/San
Rafael/Novato
Marin
October 1 – October 31 and
June 1 – September 30
Monterey Monterey June 1 – August 31
Napa Napa
October 1 – November 30 and
April 1 – September 30
Oakland Alameda October 1 – September 30
San Diego San Diego February 1 – July 31
San Francisco San Francisco October 1 – September 30
San Mateo/Foster
City/Belmont
San Mateo October 1 – September 30
Santa Barbara Santa Barbara October 1 – September 30
Santa Monica City limits of Santa Monica October 1 – September 30
Sunnyvale/Palo
Alto/San Jose
Santa Clara October 1 – September 30

Colorado
Aspen Pitkin
October 1 – March 31 and
June 1 – September 30
Crested
Butte/Gunnison
Gunnison December 1 – March 31
Denver/Aurora
Denver, Adams, Arapahoe, and
Jefferson
October 1 – October 31 and
April 1 – September 30
Grand Lake Grand December 1 – March 31
Silverthorne/Brecken
ridge
Summit December 1 – March 31
Telluride San Miguel October 1 – September 30
Vail Eagle October 1 – September 30

Delaware
Lewes Sussex July 1 – August 31

District of Columbia
Washington D.C. (also the cities of Alexandria, Falls
Church, and Fairfax, and the counties of Arlington and
Fairfax, in Virginia; and the counties of Montgomery and
Prince George's in Maryland) (See also Maryland and
Virginia)
October 1 – September 30

Florida
Boca Raton/Delray
Beach/Jupiter
Palm Beach and Hendry December 1 – April 30
Fort Lauderdale Broward January 1 – April 30
Fort Myers Lee February 1 – March 31
Fort Walton
Beach/De Funiak
Springs
Okaloosa and Walton June 1 – July 31
Key West Monroe October 1 – July 31
Miami Miami-Dade December 1 – March 31
Naples Collier December 1 – April 30
Vero Beach Indian River December 1 – April 30

Georgia
Jekyll
Island/Brunswick
Glynn March 1 – July 31

Illinois
Chicago Cook and Lake
October 1 – November 30 and
April 1 – September 30

Maine
Bar Harbor/Rockport Hancock and Knox July 1 – August 31
Kennebunk/Kittery/S
anford
York July 1 – August 31

Maryland
Ocean City Worcester July 1 – August 31
Washington, DC
Metro Area
Montgomery and Prince
George’s
October 1 – September 30

Massachusetts
Boston/Cambridge Suffolk, city of Cambridge October 1 – September 30
Falmouth City limits of Falmouth July 1 – August 31
Hyannis
Barnstable less the city of
Falmouth
July 1 – August 31

Martha's Vineyard Dukes June 1 – September 30
Nantucket Nantucket June 1 – September 30

Michigan
Petoskey Emmet July 1 – August 31
Traverse City Grand Traverse July 1 – August 31

Montana
Big Sky/West
Yellowstone/Gardiner
Gallatin and Park June 1 – September 30

New Mexico
Carlsbad Eddy October 1 – September 30

New York
Lake Placid Essex July 1 – August 31
New York City
Bronx, Kings, New York,
Queens, and Richmond
October 1 – December 31 and
March 1 – September 30

Oregon
Portland Multnomah
October 1 – October 31 and
June 1 – September 30
Seaside Clatsop July 1 – August 31

Pennsylvania
Hershey Hershey June 1 – August 31
Philadelphia Philadelphia
October 1 – November 30,
March 1 – June 30, and
September 1 – September 30

Rhode Island
Jamestown/
Middletown/Newport
Newport June 1 – August 31

South Carolina
Charleston
Charleston, Berkeley, and
Dorchester
October 1 – November 30 and
March 1 – September 30
Hilton Head Beaufort June 1 – August 31

Tennessee
Nashville Davidson October 1 – September 30

Utah
Park City Summit December 1 – March 31

Virginia
Virginia Beach City of Virginia Beach June 1 – August 31
Wallops Island Accomack July 1 – August 31
Washington, DC
Metro Area
Cities of Alexandria, Falls
Church, and Fairfax; Counties of
Arlington and Fairfax
October 1 – September 30

Washington
Seattle King October 1 – September 30
Vancouver Clark, Cowlitz, and Skamania
October 1 – October 31 and
June 1 – September 30

Wyoming
Cody Park June 1 – September 30
Jackson/Pinedale Teton and Sublette June 1 – September 30

3. Changes in high-cost localities. The list of high-cost localities in this notice differs
from the list of high-cost localities in section 5 of Notice 2020-71.
a. The following locality has been added to the list of high-cost localities: Hilton
Head, South Carolina.
b. The following locality has changed the portion of the year in which it is a high-
cost locality: Jamestown/Middletown/Newport, Rhode Island.
c. The following locality has been removed from the list of high-cost localities: Gulf
Breeze, Florida.
SECTION 6. MODIFICATION TO NOTICE 2020-71
The specified period for which Sedona, Arizona is a high cost locality under section
5, paragraph 2 of Notice 2020-71 is modified to be October 1, 2020 - December 31,
2020; March 1, 2021 - April 30, 2021; and September 1, 2021 - September 30, 2021.
This section 6 is effective for per diem allowances for lodging, meal and incidental

expenses, or for meal and incidental expenses only, that are paid to any employee on
or after October 1, 2020, for travel away from home on or after October 1, 2020.
SECTION 7. EFFECTIVE DATE
Except as provided in section 6 of this notice, this notice is effective for per diem
allowances for lodging, meal and incidental expenses, or for meal and incidental
expenses only, that are paid to any employee on or after October 1, 2021, for travel
away from home on or after October 1, 2021. For purposes of computing the amount
allowable as a deduction for travel away from home, this notice is effective for meal and
incidental expenses or for incidental expenses only paid or incurred on or after October
1, 2021. See sections 4.06 and 5.04 of Rev. Proc. 2019-48 (or successor) for transition
rules for the last 3 months of calendar year 2021.
SECTION 8. EFFECT ON OTHER DOCUMENTS
Notice 2020-71 is modified and superseded.
DRAFTING INFORMATION
The principal author of this notice is James Liechty of the Office of Associate Chief
Counsel (Income Tax & Accounting). For further information regarding this notice
contact James Liechty at (202) 317-7005 (not a toll-free call).