Per diem vs actual expenses calculator (2026)
Which meal method gives you more? Source: IRS Publication 463 and GSA per diem rates
Per diem method
Higher by $3.00Deductible (meals)
$153.00
$68.00 a day x 4.5 day-equivalents → $306.00 x 50%
Records: Still prove time, place and business purpose. No meal receipts needed.
Actual expenses method
Deductible (meals)
$150.00
$300.00 spent on meals → $300.00 x 50%
Records: Keep receipts for every meal, plus time, place and business purpose.
Meals only. Per diem cannot be used for lodging: deduct your actual lodging cost under either method. General information, not tax advice.
Whichever method wins, keep the proof in one place
Easy Trip Expenses stores receipts per trip and exports a PDF or Excel report. First report free.
How the comparison works
- Count daysFull days at 100%, departure and return day at 75%
- Pick the M&IE rateGSA rate for the city, meals and incidentals only
- Apply the 50% limitSelf-employed: both methods are cut to 50%
- CompareHigher amount wins; check the records you can keep
Per diem vs actual at a glance
| Per diem | Actual | |
|---|---|---|
| Covers | Meals and incidentals, federal M&IE rate | Meals you really paid for |
| Lodging | Deduction: no standard lodging amount, use actual cost (an employer's per diem may still reimburse lodging) | Actual cost |
| Travel days | 3/4 of the rate (Method 1) | What you spent |
| 50% limit | Yes, self-employed | Yes, self-employed |
| Records | Time, place, business purpose | Receipts, plus time, place, purpose |
Same trip, same 50% limit: the only difference is your records and the dollar amount. Each row is stated in IRS Publication 463, chapter 1.
Per diem vs actual expenses FAQ
Can self-employed people use per diem?
Yes, for meals and incidental expenses. Pub. 463 says you can use the standard meal allowance "whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses."
Can I use the per diem rate for lodging if I am self-employed?
No. Pub. 463: "There is no optional standard lodging amount similar to the standard meal allowance. Your allowable lodging expense deduction is your actual cost." The standard meal allowance is the federal M&IE rate only.
How much of the first and last travel day can I claim?
For the day you depart and the day you return you must prorate the standard meal allowance. Method 1 is 3/4 of it, which this calculator uses. Method 2 is any method you apply consistently that follows reasonable business practice (Pub. 463).
Do I need receipts if I use per diem?
Not for your meal costs: the standard meal allowance lets you use a set amount instead of keeping records of actual costs. You must still keep records that prove the time, place and business purpose of your travel (Pub. 463, chapter 5). With the actual method you keep records of your actual cost.
Does the 50% limit apply to per diem?
Yes, for self-employed people. Pub. 463: "regardless of the method you use, you can generally deduct only 50% of the unreimbursed cost of your meals," and with the standard meal allowance you can generally deduct only 50% of it. An employee reimbursed under an accountable plan is not subject to the 50% limit on those reimbursed expenses.
Which is better, per diem or actual expenses?
Whichever gives the higher amount that you can support with records. If your real meal costs are below the M&IE rate, the per diem amount is higher and needs no meal receipts. If you spend more than the rate, the actual amount is higher but needs receipts. Enter your numbers above to compare.
Sources (checked November 2026)
- IRS Publication 463 (2025), chapter 1: Travel: Meals, Standard Meal Allowance, Travel for days you depart and return; chapter 2 (50% limit and exceptions); chapter 5 (recordkeeping); chapter 6 (accountable plans).
- GSA per diem rates: the federal M&IE rates used for the standard meal allowance (FY2027 data in this site, see per diem calculator).
Pub. 463: “There is no optional standard lodging amount similar to the standard meal allowance. Your allowable lodging expense deduction is your actual cost.”
Pub. 463: “If you use the standard meal allowance, you must still keep records to prove the time, place, and business purpose of your travel.”
General information, not tax advice; ask a tax professional about your case. Related: per diem rates by city, business meal deduction, business trip with vacation days. Easy Trip Expenses is not affiliated with the IRS or the GSA.