The standard federal per diem rate in Texas is $178 a day for fiscal year 2026: $110 for lodging and $68 for meals and incidental expenses. That combined rate applies to most of the state. Four metro areas — Austin, Dallas, the Fort Worth/Arlington/Grapevine area, and Houston — carry higher per diem rates in Texas, with lodging allowances running from $128 up to $191 per night depending on the city and the month, and a meal allowance of $80 instead of $68.1U.S. General Services Administration. GSA Per Diem Bulletin FTR 26-01
The General Services Administration sets these rates, which run from October 1, 2025 through September 30, 2026. They apply directly to federal employees and function as a tax-safe ceiling for private employers who choose to use them.2U.S. General Services Administration. FY 2026 Per Diem Rates for Texas
The Standard Texas Rate
If your destination is not on the GSA’s non-standard list, you get $110 for lodging and $68 for meals and incidentals. That default covers every rural county and every smaller city in the state. San Antonio, despite its size, also falls under this standard rate.2U.S. General Services Administration. FY 2026 Per Diem Rates for Texas
Reimbursement is based on where you perform the work, not where your hotel happens to be. If no lodging is available at the work site, your agency or employer may authorize the rate for the location where you actually stay.
Non-Standard Rates in Texas Metros
Four metros pay more than the standard rate. All four also use the $80 meal tier.2U.S. General Services Administration. FY 2026 Per Diem Rates for Texas
- Arlington, Fort Worth, and Grapevine (Tarrant County): $181 lodging year-round, $80 M&IE, for a combined $261 a day.
- Austin (Travis County): $173 lodging most of the year, rising to $187 during peak months (roughly January through March). With $80 M&IE, the daily total runs $253 to $267.
- Dallas (Dallas County): $170 lodging most of the year, up to $191 in peak months. Combined daily rate runs $250 to $271.
- Houston (Harris, Fort Bend, and Montgomery Counties): $128 lodging year-round, $80 M&IE, for $208 a day.
What the Meal Allowance Covers
The M&IE figure combines meals with a $5 incidental amount for tips to hotel staff, baggage carriers, and porters. Taxes and tips on meals are already built into the rate, so you are not reimbursed for those separately.3U.S. General Services Administration. Frequently Asked Questions, Per Diem
The two tiers that apply in Texas break down like this:4U.S. General Services Administration. M&IE Breakdowns
- $68 tier (standard locations): breakfast $16, lunch $19, dinner $28, incidentals $5.
- $80 tier (Austin, Dallas, Fort Worth, Houston): breakfast $20, lunch $22, dinner $33, incidentals $5.
When a meal is provided at no cost, whether through a conference, a hosted event, or a working meal, you subtract that meal’s amount from your daily M&IE. Attend a lunch at a conference in Dallas and $22 comes off your allowance for that day. There are two exceptions: meals served by a common carrier such as an airline, and complimentary breakfasts included with the hotel room, do not require a deduction.
Travel Days Pay 75 Percent
On the first and last day of a trip lasting at least 24 hours, you receive 75 percent of the applicable M&IE rate, not the full amount. The same 75 percent rule applies to trips shorter than 24 hours but longer than 12.5eCFR. 41 CFR Part 301-11 – Subsistence Expenses
- Standard $68 tier: $51.00 on departure and return days.
- $80 tier for the four metros: $60.00 on departure and return days.
Full days between departure and return pay 100 percent of M&IE.
Lodging Taxes Are Not in the Cap
The lodging per diem covers only the base room charge. Texas charges a 6 percent state hotel occupancy tax, and cities and counties often layer their own taxes on top of that.6Texas Comptroller of Public Accounts. Hotel Occupancy Tax For federal travelers, lodging taxes are reimbursed separately as a miscellaneous travel expense, limited to the tax on the reimbursable portion of the room.5eCFR. 41 CFR Part 301-11 – Subsistence Expenses When you budget a trip, treat taxes as a separate line from the lodging cap.
Private Employers and the Tax-Safe Ceiling
Private companies are not required to pay the federal per diem. They can pay more or less.7Internal Revenue Service. Per Diem Payments Frequently Asked Questions What the GSA rate gives them is a safe harbor: reimbursements at or below the federal amount, paid under a proper expense report, stay out of the employee’s taxable wages. Anything above the federal rate becomes taxable income.
To keep per diem payments tax-free, the reimbursement arrangement has to qualify as an accountable plan. The IRS sets three conditions:8Internal Revenue Service. Publication 15 (2026), (Circular E), Employer’s Tax Guide
- Business connection. The expenses must arise from work performed as an employee and cannot substitute for regular wages.
- Substantiation. The employee must account for the expenses to the employer within 60 days.
- Return of excess. Any reimbursement over the substantiated amount must be returned within 120 days.
Miss any of the three, and the whole per diem payment becomes taxable to the employee and subject to employment taxes.
Self-Employed Travelers
If you file as self-employed, you can use the federal per diem for meals only. Lodging has to be tracked and deducted at actual cost.9Internal Revenue Service. Per Diem Rates Frequently Asked Questions Using the M&IE method spares you from keeping individual meal receipts. The standard meal deduction for business travel is generally limited to 50 percent of the M&IE amount for most self-employed filers.
Looking Up the Rate for Your Trip
Austin and Dallas lodging rates shift by month, so check the exact rate for your travel dates before you submit anything. The GSA runs a free lookup tool where you enter the state, city or zip code, and dates.10U.S. General Services Administration. Per Diem Rates The FY 2026 figures apply through September 30, 2026; the GSA publishes the FY 2027 rates after that.