Per Diem

In the United States, per diem rates for business travel in 2025 are set by the General Services Administration (GSA). These rates include two main components: lodging and meals & incidental expenses (M&IE).

Per Diem Rates for 2025

• Standard Per Diem Rate: $178 total ($110 for lodging and $68 for M&IE).
• Non-Standard Areas (NSAs): There are 296 locations with higher per diem rates due to higher costs of living. Rates in these areas vary and are determined based on Average Daily Rate (ADR) data from hotels.

Compliance Regulations

• Federal employees and businesses must adhere to the Federal Travel Regulation (FTR), which outlines per diem reimbursement policies.
• Per diem allowances are non-taxable if they adhere to IRS and GSA guidelines.
• Employees cannot claim lodging expenses if they stay in non-reimbursable accommodations (e.g., personal residences).
• M&IE covers expenses like meals, tips, and incidental costs, but alcoholic beverages are not included in reimbursements​
  origin-www.gsa.gov gsa.gov

For specific per diem rates by location, you can check the GSA Per Diem Tool at www.gsa.gov.

Mileage

For 2025, the United States’ compliance rules for business travel mileage reimbursement include a standard business mileage rate set by the IRS. For 2025, the standard rate is 70 cents per mile, up from 67 cents in 2024​ johnsonblock.com paylocity.com. This rate is intended to cover the costs of operating a personal vehicle for business purposes, including fuel, wear and tear, and maintenance.

For employers reimbursing employees for using personal vehicles for business travel, the IRS allows tax-free reimbursement if it follows these guidelines:

1. Employees must keep accurate records of their business miles, including the date, destination, and purpose of each trip.
2. Reimbursements should be based on actual business miles driven.
3. Reimbursement should not exceed the IRS standard mileage rate. If the reimbursement is higher, the excess is considered taxable income.

Employers can choose to reimburse at or below the IRS rate, but if they opt for the actual expense method, employees must track their vehicle-related costs. The choice between the standard rate and actual expenses should be made carefully, as one may be more advantageous depending on the vehicle’s usage​ johnsonblock.com

For more information, refer to the official IRS guidelines or consult with a tax professional.

Paperless

For 2025, the IRS allows businesses and individuals to maintain their tax records digitally as long as the records are clear, complete, and accessible. This includes all documents required for tax filing, such as receipts, W-2s, and 1099 forms. Digital copies are acceptable as long as they meet these criteria and can be easily retrieved when needed​ kiplinger.com ​taxandaccounting.com

Furthermore, digital storage offers benefits such as space-saving and reducing the risk of losing important documents due to disasters. It is important to back up digital files securely, ideally in encrypted cloud storage or external drives​ taxandaccounting.com. Additionally, the IRS encourages electronic filing and digital record-keeping to streamline the process and ensure accuracy during audits or tax returns​ kiplinger.com

Meals, Benefits & Allowances

In the United States, compliance regulations for meals, benefits, and allowances related to business travel in 2025 are governed by the Internal Revenue Service (IRS). Here are the key points:

1. Meal Deductions: Businesses can deduct 50% of the cost of business-related meals while traveling. This includes meals with clients, customers, or employees if they are directly related to the active conduct of business. The meals should not be considered lavish or extravagant under the circumstances
   irs.gov
2. Per Diem Rates: Instead of tracking actual meal expenses, businesses can use standard per diem rates set by the General Services Administration (GSA) for meal and incidental expenses (M&IE). These rates vary based on the travel location
   irs.gov
3. Employee Travel Reimbursements: If an employer reimburses employees for business travel expenses, the payments are not taxable if they comply with an “accountable plan.” This means employees must provide receipts and return excess reimbursements. If the plan is not accountable, reimbursements are treated as taxable income
   irs.gov
4. Travel Definition: The IRS considers an employee to be traveling for business if they are away from their “tax home” (the main place of work) for a period that requires rest, such as an overnight stay
   irs.gov
5. Temporary vs. Indefinite Assignments: Travel expenses are deductible only for temporary work assignments lasting less than a year. If the assignment exceeds one year, travel costs, including meals and lodging, are not deductible
   irs.gov

USA ALLOWANCE RATES PER STATE

Sales tax rates

The sales tax rates across U.S. states in 2025 vary widely. Some states have no sales tax, such as Delaware, Montana, New Hampshire, and Oregon. Meanwhile, other states have specific base rates, which may be higher when local taxes are considered.

Full breakdown of each state’s rate HERE.