n-24-68.pdf

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2024-2025 Special Per Diem Rates

Notice 2024-68

SECTION 1. PURPOSE
This annual notice provides the 2024-2025 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.
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.

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Proc. 2019-48 (or successor). Notice 2023-68, 2023-41 I.R.B. 1060, provides the rates
and list of high-cost localities for the period October 1, 2023, to September 30, 2024.
SECTION 3. SPECIAL M&IE RATES FOR TRANSPORTATION INDUSTRY
The special M&IE rates for taxpayers in the transportation industry are $80 for any
locality of travel in the continental United States (CONUS) and $86 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 2023-68 (the per diem
substantiation method) are $319 for travel to any high-cost locality and $225 for travel to
any other locality within CONUS. The amount of the $319 high rate and $225 low rate
that is treated as paid for meals for purposes of § 274(n) is $86 for travel to any high-
cost locality and $74 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 2023-68 (the meal and incidental expenses only substantiation method) are $86
for travel to any high-cost locality and $74 for travel to any other locality within CONUS.
2. High-c
ost localities. The following localities have a federal per diem rate of $272
or more, and are high-cost localities for the specified portion of the calendar year:

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Key City
County or Other Defined
Location
Portion of Calendar Year

Alabama
Gulf Shores Baldwin June 1 – July 31

Arizona
Phoenix/
Scottsdale
Maricopa February 1 – March 31
Sedona City limits of Sedona
October 1 – December 31 and
March 1 – September 30

California
Los Angeles
Los Angeles, Orange, and
Ventura, and Edwards AFB,
less the city of Santa Monica
October 1 – September 30
Mammoth Lakes Mono December 1 – March 31
Monterey Monterey October 1 – September 30
Napa Napa
October 1 – November 30 and
February 1 – September 30
Palm Springs Riverside October 1 – April 30
San Diego San Diego October 1 – September 30
San Francisco San Francisco October 1 – September 30
San Luis Obispo San Luis Obispo June 1 – July 31
Santa Barbara Santa Barbara October 1 – September 30
Santa Monica City limits of Santa Monica October 1 – September 30
South Lake Tahoe El Dorado December 1 – March 31
Sunnyvale/
Palo Alto/San Jose
Santa Clara October 1 – September 30
Yosemite National
Park
Mariposa January 1 – April 30

Colorado
Aspen Pitkin October 1 – September 30
Denver/Aurora
Denver, Adams, Arapahoe,
and Jefferson
October 1 – October 31 and
April 1 – September 30
Silverthorne/
Breckenridge
Summit December 1 – March 31
Steamboat Springs Routt December 1 – March 31
Telluride San Miguel October 1 – September 30
Vail Eagle October 1 – September 30

Delaware
Lewes Sussex June 1 – August 31

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Key City
County or Other Defined
Location
Portion of Calendar Year

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 January 1 – April 30
Bradenton Manatee February 1 – March 31
Cocoa Beach Brevard February 1 – March 31
Fort Lauderdale Broward January 1 – April 30
Fort Myers Lee January 1 – March 31
Fort Walton Beach/
DeFuniak Springs
Okaloosa and Walton June 1 – July 31
Gulf Breeze Santa Rosa June 1 – July 31
Key West Monroe October 1 – September 30
Miami Miami-Dade December 1 – May 31
Naples Collier December 1 – April 30
Panama City Bay June 1 – July 31
Sarasota Sarasota February 1 – April 30
Sebring Highlands February 1 – March 31
Stuart Martin February 1 – March 31
Tampa/
St. Petersburg
Pinellas and Hillsborough February 1 – April 30
Vero Beach Indian River December 1 – April 30

Georg ia
Atlanta Fulton and DeKalb January 1 – March 31
Jekyll Island/
Brunswick
Glynn March 1 – July 31

Idaho
Boise Ada
October 1 – October 31 and
June 1 – September 30
Coeur d’Alene Kootenai June 1 – August 31
Sun Valley/
Ketchum
Blaine and Elmore
December 31 – March 31 and
June 1 – September 30

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Key City
County or Other Defined
Location
Portion of Calendar Year

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

Maine
Bar Harbor/
Rockport
Hancock and Knox
October 1 – October 31 and
May 1 – September 30
Kennebunk/Kittery/
Sanford
Yo r k July 1 – August 31
Portland Cumberland and Sagadahoc
October 1 – October 31 and
June 1 – September 30

Maryland
Ocean City Worcester June 1 – August 31
Washington, D.C.
Metropolitan Area
Montgomery and Prince
George’s
October 1 – September 30

Massachusetts
Boston/Cambridge Suffolk and 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 October 1 – September 30
Nantucket Nantucket June 1 – September 30

Michigan
Mackinac Island Mackinac July 1 – August 31
Petoskey Emmet June 1 – August 31
Traverse City Grand Traverse July 1 – August 31

Minnesota
Duluth St. Louis
October 1 – October 31 and
June 1 – September 30

Montana
Big Sky/
West Yellowstone/
Gardiner
Gallatin and Park June 1 – September 30
Kalispell/Whitefish Flathead July 1 – September 30

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Key City
County or Other Defined
Location
Portion of Calendar Year

New Jersey
Toms River Ocean July 1 – August 31

New York
Glens Falls Warren July 1 – August 31
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
Saratoga Springs/
Schenectady
Saratoga and Schenectady July 1 – August 31

North Carolina
Kill Devil Hills Dare June 1 – August 31

Oregon
Bend Deschutes June 1 – August 31
Eugene/Florence Lane June 1 – July 31
Seaside Clatsop July 1 – August 31

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

Rhode Island
Jamestown/
Middletown/
Newport
Newport
October 1 – October 31 and
June 1 – September 30

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

Tennessee
Nashville Davidson October 1 – September 30

Utah
Moab Grand
October 1 – October 31,
March 1 – June 30, and
September 1 – September 30
Park City Summit October 1 – September 30

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Key City
County or Other Defined
Location
Portion of Calendar Year

Vermont
Burlington Chittenden
October 1 – October 31 and
May 1 – September 30
Manchester Bennington
October 1 – October 31 and
August 1 – September 30
Montpelier Washington
October 1 – October 31 and
August 1 – September 30

Virginia
Virginia Beach City of Virginia Beach June 1 – August 31
Wallops Island Accomack July 1 – August 31
Washington, D.C.
Metropolitan Area
Cities of Alexandria, Falls
Church, and Fairfax; counties
of Arlington and Fairfax
October 1 – September 30

Washington
Port Angeles/
Port Townsend
Clallam and Jefferson July 1 – August 31
Seattle King October 1 – September 30

Wyoming
Jackson/Pinedale Teton and Sublette October 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 2023-68.
a. The following localities have been added to the list of high-cost localities: Los
Angeles, California; Mammoth Lakes, California; Palm Springs, California; South
Lake Tahoe, California; Boise, Idaho; Coeur d’Alene, Idaho; Bend, Oregon;
Burlington, Vermont.
b. The following localities have changed the portion of the year in which they are
high-cost localities: Sedona, Arizona; Monterey, California; Napa, California; San
Luis Obispo, California; Yosemite National Park, California; Aspen, Colorado;
Silverthorne/Breckenridge, Colorado; Lewes, Delaware; District of Columbia

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(see also Maryland and Virginia); Boca Raton/Delray Beach/Jupiter, Florida; Fort
Myers, Florida; Tampa/St. Petersburg, Florida; Vero Beach, Florida; Bar
Harbor/Rockport, Maine; Portland, Maine; Ocean City, Maryland; Washington,
D.C. Metropolitan Area in Maryland (counties of Montgomery and Prince
George’s); Falmouth, Massachusetts; Nantucket, Massachusetts; Petoskey,
Michigan; Kalispell/Whitefish, Montana; Kill Devil Hills, North Carolina;
Philadelphia, Pennsylvania; Moab, Utah; Washington, D.C. Metropolitan Area in
Virginia (cities of Alexandria, Falls Church, and Fairfax; counties of Arlington and
Fairfax); Seattle, Washington.
c. The following localities have been removed from the list of high-cost localities:
Mill Valley/San Rafael/Novato, California; Oakland, California; San Mateo/Foster
City/Belmont, California; Grand Lake, Colorado; Pensacola, Florida; Punta
Gorda, Florida; Missoula, Montana; Carlsbad, New Mexico; Lincoln City,
Oregon; Myrtle Beach, South Carolina; Cody, Wyoming.
SECTION 6. EFFECTIVE DATE
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, 2024, for travel away from home on or after October 1, 2024. 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, 2024. 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 2024.

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SECTION 7. EFFECT ON OTHER DOCUMENTS
Notice 2023-68 is superseded.
DRAFTING INFORMATION
The principal author of this notice is C. Dylan Durham of the Office of Associate
Chief Counsel (Income Tax & Accounting). For further information regarding this notice,
contact Mr. Durham at 202-317-7005 (not a toll-free call).