San Francisco Per Diem: 2026 Rates and What You Need to Know

Per diem rates establish daily reimbursement amounts for business travel, providing consistent guidelines for what employees can claim and what companies should budget.

With San Francisco's rates among the highest in the nation, understanding the coverage area and local cost structures prevents budget overruns and reimbursement disputes.

What Per Diem Covers in San Francisco

Per diem breaks down into three parts: lodging, meals, and incidental expenses. Each component has its own maximum rate and reimbursement rules:

• Lodging: Lodging covers your nightly hotel room up to the maximum rate for that location. If you find a room under the maximum, you get reimbursed for the actual cost.
• Meals: Meals include breakfast, lunch, and dinner as a fixed daily amount. You get the full meal rate regardless of what you spend. If your hotel includes breakfast or your company provides lunch, those meals get deducted from your per diem.
• Incidentals: Incidentals cover tips for service workers, plus costs like laundry during extended trips. This is a fixed daily amount that doesn't require receipts.

San Francisco Per Diem Rates by Month

The U.S. General Services Administration (GSA) determines California's per diem rates as part of the continental United States (CONUS) framework. The standard baseline rate is $110 for lodging and $68 for meals and incidentals (M&IE), totaling $178 per day.

However, San Francisco falls within California’s 32 designated non-standard areas that have location-specific rates that exceed the standard rate. For San Francisco specifically, the per diem rates for lodging range from $259 to $272, depending on the month.

San Francisco Per Diem Rates

The table below breaks down the seasonal per diem rates for San Francisco:

San Francisco Meals and Incidentals Breakdown

The meals and incidentals (M&IE) rate is a total of $92 per day throughout the year. That is broken down into the following:

How to Calculate What to Pay Your Team

Here's the calculation for a project in San Francisco, where the daily rate totals $351:

• Lodging: $259 maximum
• Meals and incidentals: $92 per day

For example, a technician books lodging at $240. Reimbursement covers the actual $240, not the $259 cap. Meals and incidentals stay fixed at $92 regardless of spending.

First and last travel days receive 75% of the M&IE rate. In San Francisco, that's $69 for M&IE instead of the standard $92.

California Labor Code Requirements

California Labor Code Section 2802 requires employers to reimburse employees for all necessary business expenses, which applies to travel within San Francisco. This creates unique considerations for per diem usage.

If your company uses per diem rates, you must cover actual reasonable costs. So, when an employee's legitimate travel expenses exceed the per diem rate, California law requires you to pay the difference. For example, an electrician working in San Francisco who can't find hotels under $272 can claim the overage with proper documentation.

Many California employers use GSA rates as a starting point, then adjust based on actual costs. The law doesn't mandate specific per diem amounts; it requires full reimbursement of necessary expenses. This differs from states where per diem functions as a maximum.

Get Per Diem Right for Your Next San Francisco Project

San Francisco's $351 daily per diem rate—one of the highest in the nation—means your field teams need compliant bookings without burning through project budgets. They shouldn't waste time cross-referencing GSA tables when they could be running conduit or setting up equipment.

For companies managing crews in San Francisco, the high lodging costs create constant budget pressure. Finding compliant rooms near the job site at $259 or less requires either hours of searching or forcing your team to pay out-of-pocket and wait for reimbursement.

Engine automatically applies San Francisco's per diem rates based on your project location, handles California's Labor Code requirements, and books compliant lodging without manual intervention. Over 1 million travelers use Engine for accurate reimbursements that keep teams compliant and budgets intact.

Ready to make work travel less work? Get started today.

Frequently Asked Questions

Why is the per diem rate for San Francisco higher than the rest of California?

San Francisco's per diem rate is higher than most of California because the city's cost of living significantly exceeds other regions. Hotel rates in San Francisco average well above the state's typical costs due to limited space, high demand from tech companies and conventions, and operating expenses that reflect the Bay Area's premium real estate and labor markets. The GSA sets per diem rates based on actual market data for lodging and meals in each location.

Who sets San Francisco per diem rates?

The U.S. General Services Administration (GSA) sets California per diem rates as part of the CONUS (Continental United States) system. California has 32 non-standard areas with specific rates higher than the baseline federal rate, including San Francisco. The state doesn't establish its own separate per diem schedule.

Does California law affect San Francisco per diem reimbursement?

Yes. California Labor Code Section 2802 requires employers to reimburse all necessary business expenses. If actual reasonable travel costs exceed per diem rates, employers must pay the difference. Per diem in San Francisco functions as a baseline, not a maximum reimbursement cap.

Do San Francisco per diem rates include taxes?

Lodging taxes are separate from San Francisco per diem rates. Employees claim actual lodging costs (up to the location maximum) plus applicable taxes as distinct line items. The M&IE rate already includes taxes and gratuities for meals.

How is per diem calculated for travel days?

Travel days (first and last days) receive 75% of the M&IE rate. For a San Francisco trip with $92 M&IE, travelers get $69 on travel days. Lodging reimbursement follows standard rates for actual nights stayed.

‍