The 75% Rule: How First and Last Travel Days Are Paid (2026)

Ask ten frequent travelers why their first and last travel days pay less, and most will say "the 75% rule" — then struggle to explain what that 75% applies to. It applies to M&IE, not lodging, and it is one of the most common mistakes in federal per diem math. Here is the exact rule, with examples, for FY2026.

What the 75% Rule Says

Under the Federal Travel Regulation (FTR §301-11.101), on the first and last day of a trip the traveler receives 75% of the applicable M&IE rate. Lodging is unaffected — you are still reimbursed for nights actually stayed, up to the city cap.

Why? On travel days you typically miss one meal — you leave home before breakfast or arrive after dinner — so GSA reduces the meal allowance rather than overpaying.

Worked Examples for FY2026

Example: a 5-day trip to San Francisco ($92 M&IE, $259–$272 lodging) pays M&IE of $69 + $92 + $92 + $92 + $69 = $414 — not $460. See the trip calculator to apply this automatically.

Common Misunderstandings

• It is not 75% of lodging. The reduction applies only to M&IE.
• It applies to every trip boundary. A one-day trip pays 75% of M&IE (and is reimbursable for lodging only if overnight lodging is required).
• It is not rounded up. The exact 75% figure applies ($55.50, $64.50, $69 are precise).

IRS High-Low Method and the 75% Rule

The IRS high-low rates ($319/$225 for FY2026) do not carry the 75% first/last-day reduction in the same mechanical way — the IRS treats the meals portion ($86/$74) under the normal rules, and employers using high-low typically pay the flat daily amount. Read the high-low guide for the full comparison.

Use the Calculator

The DayFig per diem calculator applies the 75% rule automatically: pick a city like New York City, enter your dates, and the first and last rows show the reduced M&IE.

Sources: FTR §301-11.101; GSA per diem data retrieved 2026-08-19. Not tax or legal advice.