Per Diem Laws in Maryland (2026): Your Money, Your Rights
Most people hear “per diem” and their eyes glaze over. Honestly, that’s fair. It sounds like boring legal stuff. But if you travel for work in Maryland, this topic is actually about real money coming out of your pocket or going into it. Let’s break it down in plain language.
What Is Per Diem?
“Per diem” is a Latin phrase. It simply means “per day.” In the work world, it refers to a daily allowance. Your employer gives you this money to cover travel costs. Those costs include hotel stays, meals, and small expenses like tips or parking.
Think of it like a daily budget. Your company sets a number. You spend within that number. Pretty simple, right?
Per diem payments exist because travel costs money. When you travel for work, you should not have to pay those costs yourself. Per diem rules help make sure that does not happen.
Who Sets Per Diem Rates in Maryland?
Okay, pause. This part is important.
Maryland does not have one single per diem rule. There are actually two separate systems. Understanding which one applies to you is the key to everything.
The Federal GSA System
The U.S. General Services Administration, or GSA, sets federal per diem rates. These federal rates are mandatory for federal government employees on official travel in Maryland. They also serve as a common benchmark for private companies looking to create an IRS-compliant reimbursement policy.
The GSA updates its rates every October 1st. So current rates run from October 1, 2025, through September 30, 2026.
Are you a federal employee? Then GSA rates are your law. Your agency must follow them exactly.
Maryland State Rules
Maryland state employees follow a separate system. The Maryland Department of Budget and Management, or DBM, manages these rules. The DBM sets its own meal reimbursement rates for state workers.
For FY 2025, the DBM standard meal allowance rates are: Breakfast is $15.00, lunch is $18.00, and dinner is $30.00, all including tax and tip.
Are you a Maryland state employee? These are your numbers to know.
Private Employers
Here is where things get interesting.
Maryland state law does not mandate expense reimbursement for private employers. The primary legal considerations are the employer’s own policies and federal minimum wage laws.
So if you work for a private company, Maryland law does not force your boss to reimburse you. Your company’s own written travel policy is what matters most.
You’re not alone if this surprises you. Most people assume their employer has to pay them back. That is not always true in Maryland.
What Are the Current Per Diem Rates in Maryland?
Wondering what the actual numbers look like? Let’s walk through them.
For travel to cities without specific per diem rates, the standard federal rates apply: $110 for lodging and $68 per day for meals and incidentals, effective from October 2025 to September 2026. That is $178 total per day for standard locations.
But Maryland has several cities with higher rates. These are called Non-Standard Areas, or NSAs.
Baltimore
Baltimore City has a fixed per diem rate set by the GSA. The lodging rate is $150 per night. The meals and incidentals rate is $86 per day.
The first and last calendar days of travel are calculated at 75 percent. So on travel days, your meal allowance is a bit lower.
Bethesda, Rockville, and Greenbelt
These areas near Washington, D.C., are pricier. Much pricier. Lodging in Bethesda, Rockville, and Greenbelt is highly seasonal. Peak rates can reach $276 per night. Off-season rates can be as low as $183 per night.
These Maryland suburbs of Washington, D.C., are covered under D.C. per diem rules. This includes Arlington, Bethesda, Silver Spring, and surrounding areas.
Annapolis
Annapolis has a fixed per diem rate. The lodging rate is $125 per night. The meals and incidentals rate is $80 per day.
Not sure which rate applies to your trip? The GSA website has a search tool. Just enter your destination city and it shows you the right rate.
The First and Last Day Rule
Hold on, this part trips people up.
The first and last calendar day of travel is calculated at 75 percent of the M&IE total. M&IE stands for Meals and Incidental Expenses.
Here is a simple example. Say your full meal allowance is $68 per day. On your first and last travel days, you only get 75 percent of that. That comes out to $51. The rest of your days are at the full rate.
Makes sense, right? You are not eating three full meals on the day you leave or the day you return.
Maryland State Employee Travel Rules
If you work for the State of Maryland, your travel rules go beyond just meal rates. There are specific rules you need to follow.
Employees may be reimbursed for meal and hotel costs while on travel status. But there are conditions attached.
For example, the State may not reimburse an employee for transportation, lodging, meal expenses, or any other costs incurred by a spouse, child, or other person not essential to the business mission who accompanies the employee on an official trip.
So if your partner tags along on your work trip, their expenses are on you. Not the state.
There is also a rule about transportation tips. Employees may be reimbursed for tips for taxi, bus, shuttle, and airport limousine at rates established by the Secretary. And porter fees? The reimbursable rate is $1.00 per bag.
Basically, the state covers reasonable costs. It does not cover extras.
What About Airbnb?
Employees are not authorized to use an Airbnb while on approved travel. The state will not authorize Airbnb rentals or approve reimbursement for Airbnb expenses.
Yep, that’s all you need to know about that one.
Out-of-State Travel
Planning to travel outside Maryland for work? No reimbursement will be made for costs incurred during out-of-state travel unless the required travel form, with necessary approvals, is submitted to the appropriate travel coordinator beforehand.
Get the paperwork done first. Do not assume approval will come after the fact.
What Counts as an Incidental Expense?
Confused about what “incidentals” actually means? You are not the only one.
Incidental expenses are the small costs that come with travel. Things like tips for hotel staff, parking fees, and small purchases. They are not big ticket items. They are the little things that add up over a multi-day trip.
The GSA bundles meals and incidentals together into one rate. That combined rate is the M&IE. When someone says your M&IE rate is $68, that covers all of your meals and those small extra costs.
Per Diem and Taxes
Here is something most people miss. Honestly, this might be the most important part.
Per diem payments can be tax-free, but only up to a point. If your employer pays you at or below the GSA rate, that money is not taxable income. You do not have to report it.
But if your employer pays you more than the GSA rate, the extra amount is taxable. You would need to report it as income on your tax return.
This is called an “accountable plan” in IRS terms. It basically means your company follows the rules, keeps records, and pays within approved limits. If they do, everyone avoids extra taxes.
Not sure how your company handles it? Ask your HR or payroll department directly. It is worth knowing.
What If Your Employer Pays Less Than the GSA Rate?
This is where Maryland’s minimum wage law comes in.
Remember, private employers in Maryland are not required to reimburse you at all. But there is one big exception. Federal minimum wage laws, specifically the Fair Labor Standards Act, ensure that expenses do not drop an employee’s effective pay below the minimum wage.
In other words, your employer cannot make you spend your own money on work travel if doing so would bring your pay below minimum wage. That is the line in the sand.
If you think your travel costs are putting your effective pay below minimum wage, that is a potential legal issue. Talk to an employment attorney.
How to Find the Right Rate for Your Trip
Sound complicated? It is actually not once you know where to look.
Here is what you do. Go to the GSA website at gsa.gov. Find the per diem rates section. Type in the city and state you are traveling to. Select the correct fiscal year. The tool will show you the exact lodging and meal rates for that location and month.
Do this before your trip. Do not guess. Rates vary by city and sometimes by month. Getting the number wrong can mean you spend more than you get back.
If you are a Maryland state employee, also check the DBM website at dbm.maryland.gov. That is where the state meal rates are posted.
What Happens If You Overspend?
Here is a quick scenario. A coworker told me about this one recently.
She spent $200 on a hotel room when the GSA rate for that city was $150. She assumed her agency would just cover it. They did not. She had to pay the extra $50 herself.
The rule is simple. Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity.
In plain English: you get the rate for where you are working, not where you chose to sleep. If you pick a hotel above the approved rate, you cover the difference.
Always check rates before booking. Always.
Frequently Asked Questions
Does Maryland require private companies to give employees per diem? No. Maryland law does not require private employers to reimburse travel expenses. Reimbursement depends on your employer’s written policy.
What is the standard per diem rate for areas without a specific rate in Maryland? The standard GSA rate for FY 2026 is $110 per night for lodging and $68 per day for meals and incidentals.
Are per diem payments taxable in Maryland? Per diem payments at or below the GSA rate are generally not taxable. Amounts above the GSA rate may be treated as taxable income.
Can Maryland state employees stay at an Airbnb for work travel? No. Maryland state employees are not authorized to use Airbnb for work travel, and those expenses will not be reimbursed.
What happens on the first and last day of a work trip? The meal and incidental allowance is reduced to 75 percent on the first and last days of travel.
Do I need approval before traveling out of state for work as a Maryland state employee? Yes. Out-of-state travel requires a completed travel form with the necessary approvals before you travel.
What if my hotel costs more than the GSA rate? You pay the difference. The state or federal agency only reimburses up to the approved GSA rate for that location.
Final Thoughts
Now you know the basics of per diem laws in Maryland. It is not as complicated as it sounds once you break it down.
The key things to remember: federal employees follow GSA rates. Maryland state employees follow DBM rules. Private company workers follow their employer’s policy. And everyone should check rates before booking anything.
When in doubt, look it up on the GSA website or ask your HR department. A little research before your trip can save you real money. Stay informed, plan ahead, and travel smart.
