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IRS Publishes Special Per Diem Rates for 2022-2023

SEP. 26, 2022

Notice 2022-44; 2022-41 IRB 277

DATED SEP. 26, 2022
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Citations: Notice 2022-44; 2022-41 IRB 277

Superseded by Notice 2023-68

Supersedes Notice 2021-52

2022-2023 Special Per Diem Rates

SECTION 1. PURPOSE

This annual notice provides the 2022-2023 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. Proc. 2019-48 (or successor). Notice 2021-52, 2021-38 I.R.B. 381, provides the rates and list of high-cost localities for the period October 1, 2021, to September 30, 2022.

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 2021-52 (the per diem substantiation method) are $297 for travel to any high-cost locality and $204 for travel to any other locality within CONUS. The amount of the $297 high rate and $204 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 2021-52 (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 $250 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

Alabama

Gulf Shores

Baldwin

June 1 - July 31

Arizona

Phoenix/Scottsdale

Maricopa

February 1 - March 31

Sedona

City limits of Sedona

October 1 - September 30

California

Los Angeles

Los Angeles, Orange, and Ventura, and Edwards AFB, but not 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 - September 30

Oakland

Alameda

October 1 -September 30

San Diego

San Diego

February 1 - August 31

San Francisco

San Francisco

October 1 - September 30

San Luis Obispo

San Luis Obispo

June 1 - August 31

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 - October 31 and April 1 - September 30

Denver/Aurora

Denver, Adams, Arapahoe, and Jefferson

October 1 - October 31 and April 1 - September 30

Durango

La Plata

June 1 - September 30

Grand Lake

Grand

December 1 - March 31

Silverthorne/Brecken ridge

Summit

October 1 - March 31 and June 1 - September 30

Steamboat Springs

Routt

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

Bradenton

Manatee

February 1 - March 31

Cocoa Beach

Brevard

February 1 - March 31

Fort Lauderdale

Broward

October 1 - April 30

Fort Myers

Lee

February 1 - March 31

Fort Walton Beach/DeFuniak Springs

Okaloosa and Walton

October 1 - October 31

March 1 - September 30

Gulf Breeze

Santa Rosa

June 1 - July 31

Key West

Monroe

October 1 - September 30

Miami

Miami-Dade

December 1 - March 31

Naples

Collier

December 1 - April 30

Panama City

Bay

June 1 - July 31

Pensacola

Escambia

June 1 - July 31

Punta Gorda

Charlotte

February 1 - March 31

Sarasota

Sarasota

February 1 - April 30

Sebring

Highlands

February 1 - March 31

Stuart

Martin

February 1 - March 31

Vero Beach

Indian River

December 1 - April 30

Georgia

Jekyll Island/Brunswick

Glynn

March 1 - July 31

Idaho

Sun Valley/Ketchum

Blaine and Elmore

December 1 - March 31 and June 1 - September 30

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 July 1 - September 30

Kennebunk/Kittery/S anford

York

July 1 - August 31

Portland

Cumberland and Sagadahoc

July 1 - August 31

Maryland

Ocean City

Worcester

July 1 - August 31

Washington, DC 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

May 1 - August 31

Hyannis

Barnstable less the city of Falmouth

July 1 - August 31

Martha's Vineyard

Dukes

October 1 - September 30

Nantucket

Nantucket

October 1 - September 30

Michigan

Mackinac Island

Mackinac

July 1 - August 31

Petoskey

Emmet

July 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 - August 31

New Mexico

Carlsbad

Eddy

October 1 - September 30

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

North Carolina

Kill Devil Hills

Dare

April 1 - September 30

Oregon

Lincoln City

Lincoln

July 1 - August 31

Portland

Multnomah

October 1 - October 31 and June 1 - September 30

Seaside

Clatsop

July 1 - August 31

Pennsylvania

Lincoln City

Lincoln

July 1 - August 31

Portland

Multnomah

October 1 - October 31 and June 1 - September 30

Seaside

Clatsop

July 1 - August 31

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

June 1 - August 31

Myrtle Beach

Horry

June 1 - August 31

 Tennessee

Nashville

Davidson

October 1 - September 30

Utah

Moab

Grand

October 1 - October 31 and March 1 - September 30

Park City

Summit

October 1 - September 30

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

Vermont

Manchester

Bennington

October 1 - September 30

Washington

Port Angeles/Port Townsend

Clallam and Jefferson

July 1 - August 31

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

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 2021-52.

a. The following localities have been added to the list of high-cost localities: Gulf Shores, Alabama; Phoenix/Scottsdale, Arizona; San Luis Obispo, California; Durango, Colorado; Steamboat Springs, Colorado; Bradenton, Florida; Cocoa Beach, Florida; Gulf Breeze, Florida; Panama City, Florida; Pensacola, Florida; Punta Gorda, Florida; Sarasota, Florida; Sebring, Florida; Stuart, Florida; Sun Valley/Ketchum, Idaho; Portland, Maine; Mackinac Island, Michigan; Duluth, Minnesota; Kalispell/Whitefish, Montana; Toms River, New Jersey; Glens Falls, New York; Kill Devil Hills, North Carolina; Lincoln City, Oregon; Myrtle Beach, South Carolina; Moab, Utah; Manchester, Vermont; Port Angeles/Port Townsend, Washington.

b. The following localities have changed the portion of the year in which it is a high-cost locality: Sedona, Arizona; Napa, California; San Diego, California; Silverthorne/Breckenridge, Colorado; Fort Lauderdale, Florida; Fort Walton Beach/De Funiak Springs, Florida; Key West, Florida; Bar Harbor/Rockport, Maine; Falmouth, Massachusetts; Martha's Vineyard, Massachusetts; Nantucket, Massachusetts; Jamestown/Middleton/Newport, Rhode Island; Charleston, South Carolina; Park City, Utah; Jackson/Pinedale, Wyoming.

c. The following locality has been removed from the list of high-cost localities: Crested Butte/Gunnison, Colorado.

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, 2022, for travel away from home on or after October 1, 2022. 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, 2022. 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 2022.

SECTION 7. EFFECT ON OTHER DOCUMENTS

Notice 2021-52 is superseded.

DRAFTING INFORMATION

The principal author of this notice is Knolan Smith of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this notice contact Mr. Smith at (202) 317-7005 (not a toll-free call).

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