GSA Per Diem Rates 2026 & GSA Mileage Rate 2026 - Government Mileage Rate

Updated July 10, 2026.

The General Services Administration (GSA) publishes federal travel and per diem guidance, while the Internal Revenue Service (IRS) sets the optional standard mileage rates used for business, medical, and certain moving expenses. Organizations that reimburse travel, meals, and mileage need to account for both sets of rates.

July 2026 update: The IRS increased the optional business standard mileage rate to 76 cents per mile, effective July 1, 2026. The previous rate of 72.5 cents per mile continues to apply to eligible business mileage from January 1 through June 30, 2026.

For finance teams still managing business per diem and mileage manually, rate changes are more than routine housekeeping. Outdated tables, spreadsheets, and inconsistent processes can lead to over-reimbursement, under-reimbursement, and additional reconciliation work.

This is where structured per diem and mileage management starts to matter.

To apply current federal per diem rates to an actual trip, use the DATABASICS GSA per diem calculator to estimate lodging and meals and incidental expenses (M&IE) by destination and travel date.

July 2026 IRS Standard Mileage Rate Update

The IRS has increased the optional standard mileage rate for business use to 76 cents per mile for eligible mileage beginning July 1, 2026. This is a 3.5-cent increase from the rate that applied during the first half of the year.

The revised rates apply based on when the eligible transportation expense was incurred. Organizations should retain both 2026 business rates so that mileage from January through June is not recalculated at the July rate. For example, 1,000 eligible business miles reimbursed at 76 cents per mile equals $760, which is $35 more than the same mileage reimbursed at 72.5 cents per mile.

Finance teams can estimate trip costs with the free DATABASICS Global Mileage Reimbursement Calculator. Select the country, enter the business distance, and calculate the estimated reimbursement using the applicable local units and currency.

For a complete explanation of the split-year rates, calculation examples, and employer action items, read our 2026 IRS mileage rate guide.

Source: IRS Internal Revenue Bulletin 2026-29, Announcement 2026-11.

DATABASICS customer update:
The new U.S. business mileage rate will be added to DATABASICS production sites by July 14, 2026, with an effective date of July 1, 2026. Customers who would like the new rate applied sooner, or who do not want the rate added to their site, can email support@data-basics.com.

GSA Per Diem Rates and Daily Per Diem for Meals

GSA per diem rates establish lodging and daily meal and incidental expense allowances (M&IE) for federal travel. Many private-sector organizations also use these rates as benchmarks for their travel policies.

While the specific amounts vary by location, the structural requirements remain consistent:

• Most continental United States (CONUS) locations follow standard rates.
• High-cost locations may have higher lodging and M&IE rates.
• First- and last-day travel generally requires a reduced M&IE allowance.
• Lodging taxes are typically excluded from the lodging rate and handled separately.

These variables can create errors when employees and approvers have to look up rates manually. A location, travel date, or partial-day rule can change the allowable amount, leaving finance teams to identify and correct inconsistencies later.

Why Per Diem Errors Aren't Always Intentional

Most per diem discrepancies are procedural rather than intentional. Common examples include:

• Claiming a full M&IE allowance on the first or last travel day.
• Applying the wrong rate to a high-cost location.
• Submitting overlapping mileage and transportation expenses.
• Using a manual override without the supporting explanation or approval.

When per diem rules live only in PDFs, policy documents, or spreadsheets, employees and approvers have to interpret them during every trip. Building the rules into the expense workflow makes the correct process clearer and more consistent.

How DATABASICS Simplifies Per Diem Management

DATABASICS Expense brings GSA per diem tables and configurable IRS mileage rules into your expense reporting workflow, helping organizations apply policies before reimbursement.

That means:

• Automatic application of current federal per diem rates.
• Built-in logic for first- and last-day travel reductions.
• Accurate daily M&IE allowances by city and date.
• Mileage reimbursement based on the applicable rate and effective date.
• Consistent policy checks and approval routing.
• Project, grant, and cost-center allocation.
• Complete records for reporting, reconciliation, and audits.

When rates change due to annual or midyear updates, centrally managed configurations reduce the need for separate spreadsheets, manual calculations, and retroactive corrections.

What the 2026 Rate Changes Mean for Finance and Operations Teams

Organizations should treat the July mileage adjustment as an effective-dated change, not as a replacement for every 2026 transaction. Finance and operations teams should:

• Retain the 72.5-cent business rate for eligible mileage incurred through June 30.
• Apply the 76-cent business rate to eligible mileage beginning July 1.
• Test trips dated June 30 and July 1 to confirm the correct rate is selected.
• Review mileage and travel policies for references to outdated rates.
• Notify employees and approvers about the effective date.
• Confirm that expense, payroll, and ERP integrations preserve the trip date and reimbursement calculation.

A consistent workflow makes it easier to reimburse employees accurately, keep travel costs assigned to the correct projects or departments, and maintain the documentation finance teams need.

Mileage and Per Diem Shouldn't Be Separate Systems

Mileage reimbursement and per diem often appear on the same trip. Managing them in separate processes increases the chance of duplicate entries, missed policy rules, and additional reconciliation work.

With DATABASICS, mileage and per diem can move through the same controlled workflow. Employees have one place to submit travel expenses, managers receive consistent approval information, and finance teams receive complete records for accounting and reporting.

Final Thought

GSA per diem rates and IRS mileage rules change over time. The process for applying them does not need to become more complicated each time a rate changes.

DATABASICS Expense Management helps organizations keep rates current, apply travel policies consistently, route approvals, and send complete reimbursement data to their financial systems.

Book a DATABASICS demo to see how mileage and per diem management can work within one expense reporting process.