Key Takeaways

• New IRS per diem rates for business travel take effect October 1, 2026.
• The high-cost rate increases to $329 per day, while the rate for other locations increases to $230 per day.
• Per diem rates may simplify reimbursement for dental conferences, continuing education, training, and other qualifying business travel.
• Using per diem does not eliminate documentation requirements; practices still need records of the business purpose, dates, and location of travel.
• Per diem and mileage cover different expenses, and dental practices should make sure they are using the correct 2026 rates for each.

If you or members of your dental team travel for continuing education, conferences, training, or other business purposes, the IRS has updated some of the per diem rates used to substantiate business travel expenses.

The new rates take effect on October 1, 2026. For dental practice owners and office managers, this is a good time to review how the practice handles travel reimbursements and make sure anyone responsible for those expenses is using the current rates.

What Changed?

The IRS allows businesses to use per diem rates to substantiate certain lodging, meal, and incidental expenses rather than relying solely on actual expenses for every trip.

Under the high-low method, businesses use one rate for designated high-cost locations and another for most other locations within the continental United States. Beginning October 1:

• The high-cost per diem rate increases from $319 to $329 per day.
• The rate for other locations increases from $225 to $230 per day.
• The portion treated as meals remains $86 per day in high-cost locations and $74 per day in other locations.

The IRS maintains a list of locations that qualify for the high-cost rate, and some locations qualify only during certain times of the year. You can review the complete list, including the applicable dates for each location, in IRS Notice 2026-60.

For businesses using the meals and incidental expenses-only method, the rates remain $86 for high-cost locations and $74 for other locations within the continental United States.

Where This May Come Up in a Dental Practice

Travel isn’t an everyday expense for many practices, but when it happens, the costs can add up quickly.

A dentist may travel to a clinical conference or continuing education program. Team members might attend software training, an industry meeting, or an event held by a dental organization. A multi-location practice may also have employees traveling for legitimate business purposes.

Per diem rates can make reimbursement easier by providing established amounts for qualifying travel expenses rather than requiring the practice to determine a reasonable amount from scratch each time.

They don’t eliminate the need for documentation, though. The business purpose, dates, and location of the travel still matter, even when a per diem method is used.

Per Diem Is Not the Same as the Mileage Rate

It is also worth distinguishing per diem rates from the IRS standard mileage rate. They cover different expenses.

Per diem generally relates to qualifying lodging, meals, and incidental expenses for business travel away from home. The mileage rate applies to the business use of a vehicle.

This distinction is particularly relevant in 2026 because the IRS also changed the business mileage rate midyear. The rate increased from 72.5 cents to 76 cents per mile for eligible business mileage beginning July 1, 2026.

If your practice reimburses both travel and mileage, make sure the person processing reimbursements knows which rates apply and when.

Review Your Travel Reimbursement Process

The October 1 change doesn’t require a major overhaul for most dental practices, but it is a useful reminder to look at how travel expenses are handled.

Make sure your reimbursement policy is clear, the appropriate rates are being used, and employees know what information they need to provide when submitting an expense. If your practice uses a per diem method, confirm that your payroll or accounting process is applying it correctly.

Have questions about travel reimbursements or deductible business expenses for your dental practice? Edwards & Associates can help you understand how current tax rules apply to your practice and make sure your accounting processes are keeping up with changes throughout the year.