2016 Mileage and Per Diem Rates

Mileage and Per Diem Rates

As 2016 tax dates and rates have been announced, it is important to know the most up-to-date information when it comes to deducting Mileage and Per Diem Rates for you and your employees. If you are a small business with an employee or employees traveling to a conference, driving to visit clients around the city or to pick up office supplies, you will need to know the current rates for accurate tax filings the following year.

Please refer to the two tables below for the 2016 Mileage and Per Diem Rates. 

2016 Mileage Rates


Business 54¢
Medical 19¢
Moving 19¢
Charitable 14¢

The IRS mileage rates for 2016 apply to miles driven starting on January 1, 2016. The 2016 Mileage Rates have seen a decrease in comparison to the 2015 rates. The 2016 mileage rates are a three and a half cent per mile reduction for business miles, four cents per mile reduction for medical and moving purposes and charitable mileage rates remaining the same.1

Per Diem Rates


Standard1 (Continental U.S.) $140.00
Travel - High cost locality2 $275.00
Travel - Other (Continental U.S.) $185.00
Meals - High cost locality2 $68.00
Meals - Other (Continental U.S.) $57.00
Incidentals $5.00
Lodging $89.00
Meals & Incidentals $51.00 - $74.00

1Includes lodging, meals and incidentals

2Location-specific rates can be accessed at gsa.gov/perdiem.


Per diem rates are daily expenses set for employees traveling for business purposes in the U.S. and overseas, with rates differing depending on the area. While companies can set their own per diem rates, most businesses use the per diem rates set by the U.S. government by the General Services Administration (GSA).You can also find federal per diem rates at www.gsa.gov/perdiem.


Avoid Payroll Tax Compliance Penalties with BenefitMall

Businesses must pay attention to the current federal per diem and mileage rates because payment to employees of reimbursements in excess of the federal rates can have serious tax consequences. With the help of BenefitMall and our online payroll solutions, your small business can have accuracy guaranteed with your payroll on time and correct, taxes paid and compliance issues handled.*


To learn how BenefitMall PayFocus can help your business avoid payroll tax compliance penalties and run payroll on time today at employers.benefitmall.com/products/payfocus-online.





What You Need to Know About Per Diem Rates. (n.d.). Retrieved January 25, 2016, from http://biztaxlaw.about.com/od/mileagededuct/f/What-Do-I-Need-To-Know-About-Per-Diem-Rates.htm

IRS Mileage Rates for 2016 Announced – A Decrease! (2015). Retrieved January 25, 2016, from http://smallbiztrends.com/2015/12/irs-mileage-rates-for-2016.html


* Penalty-free tax service guaranteed as long as the original information and any updated changes are provided to BenefitMall.