Business travel costs money. Meals, hotels, gas — it all adds up fast. That’s why per diem laws exist. They protect both workers and employers by setting clear rules about travel reimbursements.
If you work in Washington state or travel here for business, this guide is for you. We’ll break down what per diem means, what the current 2026 rates are, and what the law says about who gets paid and when.
What Is Per Diem?
“Per diem” is Latin for “by the day.” In plain English, it’s a daily allowance your employer gives you to cover travel costs. That includes meals, a hotel room, and small expenses like tips or parking.
Pretty straightforward, right? Instead of saving every single receipt, you get a set daily amount. Spend less and you keep the difference. Spend more and you cover the gap yourself.
Per diem makes life easier for everyone. Employers know exactly what travel costs. Workers don’t have to chase down receipts for every coffee and cab ride.
Who Sets Per Diem Rates in Washington?
Here’s where it gets a little layered. Stay with me.
There are actually two sets of rules that matter in Washington. One comes from the federal government. The other comes from Washington state itself.
The U.S. General Services Administration, known as the GSA, sets the official federal per diem rates. These rates apply directly to federal government employees. They are also used as a common benchmark by private businesses.
Washington’s Office of Financial Management, or OFM, manages per diem rules for state employees. The OFM follows the GSA rates and updates guidance for state agencies.
Federal Per Diem Rates for Washington in 2026
The current federal fiscal year runs from October 2025 to September 2026. The GSA sets rates every year based on real hotel and meal cost data.
For most cities in Washington without a specific rate, the standard federal rate applies. That’s $110 per night for lodging and $68 per day for meals and incidental expenses. Combined, that’s $178 per day.
Wondering if your city has a higher rate? Good question. Nine cities in Washington have their own specific per diem amounts because costs there run higher.
Seattle is the most notable one. Lodging in Seattle runs $188 per night most of the year. During summer, from June through September, that jumps to $248 per night. Meals and incidentals come to $92 per day. The first and last day of any trip, that amount drops to 75%, which comes out to $69.
Tacoma and Vancouver have lodging at $136 per night. Spokane comes in at $126 per night. Other cities with their own rates include Everett, Olympia, Port Angeles, Ocean Shores, and Richland.
The other eight Washington cities with specific rates all carry a meals and incidentals figure of $64.50 per day. The 75% rule applies on the first and last day of travel there too, dropping it to about $48.38.
Washington State Law: What Does It Actually Require?
Okay, pause. Read this carefully.
Washington state law does not force private employers to use per diem. There is no specific rate that private companies must pay. But that does not mean anything goes.
Washington’s Minimum Wage Act is the key law here. It says that any unreimbursed business expense cannot cause your pay to fall below the state minimum wage. Think of it like a safety net. Your employer can choose how to handle travel costs, but they cannot shift those costs onto you in a way that cuts your take-home pay below the legal minimum.
Most people don’t realize how this protection actually works. If your employer sends you on a trip and you pay out of pocket, those costs reduce your effective hourly rate. If that reduction pushes your pay below Washington’s minimum wage, your employer must make up the difference.
Seattle Has Stricter Rules
Now, here’s where things get more serious.
Seattle goes further than state law. The Seattle Wage Theft Ordinance requires employers to pay workers for “all compensation owed.” The city explicitly includes necessary business expenses in that definition.
This means Seattle employers cannot skip reimbursements and hope for the best. If you travel for work in Seattle and your employer does not cover your costs, they may be violating city law. Per diem is a legal way to meet this obligation, but the amount must actually cover your real expenses.
Personally, I think this is one of the smarter local laws in the state. It closes a gap that too many workers fall through.
State Employees: A Clearer Set of Rules
For Washington state employees, the rules are much more specific. The OFM manages all of this through the state’s travel regulations.
State workers must stay within approved per diem limits. Lodging must not go over the maximum rate for that location. Meals are covered up to the GSA amount. The state also reimburses mileage for personal vehicle use at $0.725 per mile, as of January 1, 2026.
State employees need to document everything. That means keeping receipts, logging dates, listing destinations, and explaining the business purpose of the trip. Luxury hotels above the cap or meals without proper records simply will not be reimbursed.
Sound strict? It is. But it also protects taxpayer money and ensures fair treatment across all agencies.
The IRS Rules: Taxes and Per Diem
Here’s something a lot of people miss. Per diem can be taxable or tax-free depending on how your employer handles it.
The IRS has rules called the “accountable plan” requirements. If your employer follows these rules, your per diem is not treated as taxable income. It won’t show up as wages on your W-2 form. That’s a big deal.
To qualify as a tax-free reimbursement, three things must be true. First, the expense must be for a real business purpose. Second, you must document the time, place, and reason for travel. The IRS gives you 60 days to do this. Third, you must return any money your employer gave you that you didn’t actually spend.
If your employer does not follow these rules, your per diem becomes taxable income. You’ll owe taxes on it just like you would a regular paycheck.
One more important note. Per diem cannot be paid to anyone who owns 10% or more of the business. That’s a federal rule with no exceptions.
The High-Low Method: Another Option
Some employers skip the city-by-city GSA rates and use a simpler system called the high-low method.
Under this IRS-approved method, there are just two rates. High-cost cities get one flat rate. Everywhere else gets another. For fiscal year 2026, the high-cost rate is $319 per day, which breaks down to $233 for lodging and $86 for meals and incidentals. The standard rate for everywhere else is $225 per day, with $74 set aside for meals.
Seattle qualifies as a high-cost area. So employers using the high-low method would pay $319 per day for Seattle travel. This can be simpler to manage than looking up specific city rates every time.
First and Last Day Rules
Most people don’t know about the 75% rule. Here’s a quick breakdown.
On the first and last day of any business trip, you only get 75% of the daily meals and incidentals rate. This is because you’re not traveling the full day. The IRS built this rule in to keep reimbursements fair.
So if you travel to Seattle and the meal rate is $92 per day, your first and last day would each pay out $69.
It’s a small detail. But it matters when you’re calculating total reimbursement for a multi-day trip.
How to Handle Per Diem: A Practical Guide
You’re not alone if this feels like a lot. Let’s make it simple.
If you are an employee traveling for work, start by checking your company’s travel policy. Find out if they use per diem or actual expense reimbursement. If they use per diem, ask what rates they follow. Are they using GSA rates? The high-low method? A company-specific rate?
Always document your travel. Write down the dates, the city you traveled to, and the business reason for the trip. Keep hotel receipts, even if your employer uses per diem for meals. If you spend more than your per diem allows, you’ll need those records to ask for actual reimbursement.
If you are an employer setting up a travel policy, the smartest move is to use GSA rates or the IRS high-low method. Both are IRS-approved and help keep reimbursements tax-free. Make sure your policy requires employees to submit expense reports within 60 days. Require them to return unused travel advances.
Trust me, a clear written policy saves a lot of headaches later.
What Happens If There’s a Dispute?
Wondering what to do if your employer refuses to reimburse you? You have options.
Washington employees can file a wage complaint with the Washington State Department of Labor and Industries. If the unreimbursed expenses caused your pay to fall below minimum wage, that is a wage violation. The state takes those seriously.
Seattle workers can also file complaints under the city’s Wage Theft Ordinance. The city enforces these rules independently.
If the amount in question is significant, consulting an employment attorney in Washington is a smart move. Many offer free initial consultations.
Special Situations Worth Knowing
A few edge cases come up often. Here’s a quick rundown.
Extended assignments are different. If you stay at a location for more than 180 consecutive days, the federal government no longer considers it temporary travel. At that point, it may be treated as a permanent change of station. Per diem stops applying in that case.
Weekend and holiday travel still counts. If your assignment continues through a weekend or holiday, per diem applies for those days too. You don’t stop being “on assignment” just because it’s Saturday.
Mixing lodging reimbursement types can cause problems. You cannot use per diem for meals and then also claim actual receipts for meals from the same day. Pick one method and stick with it.
Taxes on hotel stays are handled separately from the lodging cap. Your employer can reimburse the room rate up to the GSA cap and then list hotel taxes as a separate line item on the expense report. That’s totally fine.
Frequently Asked Questions
Does Washington state require employers to pay per diem?
Private employers are not required to pay a specific per diem rate, but they must reimburse expenses that would otherwise push your wages below the state minimum wage.
Are per diem payments taxable in Washington?
They are tax-free if your employer uses an IRS-approved accountable plan. If not, the money is treated as taxable income.
What is the per diem rate for Seattle in 2026?
Lodging runs $188 per night most of the year and $248 per night from June to September. Meals and incidentals are $92 per day.
What is the standard per diem rate for smaller Washington cities in 2026?
Cities without a specific GSA rate use the standard federal rate of $110 per night for lodging and $68 per day for meals and incidentals.
What is the mileage reimbursement rate for Washington state employees in 2026?
State employees are reimbursed at $0.725 per mile for personal vehicle use, as of January 1, 2026.
What happens if my employer pays me more than the GSA per diem rate?
The amount above the GSA rate becomes taxable income unless you provide receipts proving you actually spent the extra money.
Do I have to submit expense reports if my employer uses per diem?
Yes. Even with per diem, you still need to document the date, location, and business purpose of every trip.
Final Thoughts
Per diem laws in Washington are not as complicated as they first look. Once you understand who sets the rates and what the law actually requires, it all clicks into place.
Here’s the short version. Federal rates set the standard. Washington state law protects your wages. Seattle adds extra protections. The IRS decides whether your reimbursement is taxable. And good documentation keeps everything clean.
Now you know the basics. Whether you’re an employee heading out on a business trip or an employer writing a travel policy, the rules are clear. Stay informed, keep your records, and when in doubt, check with your HR department or an employment attorney.
