Texas Per Diem: 2026 Rates and What You Need to Know

Per diem rates determine how much employees receive for lodging, meals, and incidental costs during work travel, particularly for government contractors and employees. They create a standard framework that simplifies expense tracking and keeps travel budgets predictable.

Texas spans multiple major metros with rates varying significantly by location—from Houston's energy sector to Austin's tech hub. Understanding which rate applies to each project prevents budget overruns and reimbursement disputes.

What Per Diem Covers in Texas

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.

Texas Per Diem Rates by Location

The U.S. General Services Administration (GSA) determines Texas’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, Texas rates vary by location and, in some cities, by season. Major metros like Dallas, Houston, and Austin command higher rates than the standard Texas rate. Tourist destinations and event-heavy cities like Austin and San Antonio see seasonal rate increases. These rates are updated annually on October 1. For destinations not listed below, use the CONUS standard rate.

Year-Round Rates

These locations maintain consistent per diem rates throughout the year:

Seasonal Rates

These locations have different rates depending on when you travel:

How to Calculate What to Pay Your Team

Here's the breakdown for a project in Dallas during January, when the rate is $271/day:

• Lodging: $191 maximum
• Meals and incidentals: $80 per day

Say your employee finds a hotel for $175. They should receive $175 for the room, not the $191 maximum. Meals and incidentals remain fixed regardless of actual spending.

Travel days work differently. First and last days of trips receive 75% of the meal allowance. In Dallas, that's $60 for M&IE instead of the full $80.

Key Officials Per Diem Rate Exception

Texas state key officials—including elected officials, agency heads, and other designated positions—receive higher per diem allowances than standard employees.

For in-state or out-of-state travel, key officials can receive up to twice the amount listed on the GSA's Domestic Maximum Per Diem Rates for their travel location.

For areas not listed on the GSA schedule, key officials receive:

• Lodging: Up to $220 per day
• Meals: Up to $136 per day

For same-day travel without an overnight stay, key officials can claim up to $72 daily for meals.

Tax Considerations for Texas Travel

Texas has varying hotel occupancy taxes depending on the city and county. Major metros typically charge combined state and local taxes ranging from 15% to 17%.

Here's how it works: A $175 hotel in Dallas costs approximately $203 after taxes. Employees claim the $175 room (within the $191 January limit) plus the tax amount as a separate expense line. This matches standard federal reimbursement policy.

The M&IE rate already accounts for taxes and gratuities, so those don't get claimed separately.

Get Per Diem Right for Your Next Texas Project

Your crew needs compliant rooms near the job site, not spreadsheets full of GSA rate tables. When you're managing projects across Dallas, Houston, and San Antonio simultaneously, tracking which city uses which M&IE rate and whether lodging costs are in high season becomes a full-time job nobody has time for.

Engine automatically applies the correct per diem rates based on your project location and travel dates. No manual rate lookups. No seasonal rate confusion. No policy violations that show up after the money's spent. Over 1 million travelers rely on Engine to handle Texas's location-specific rates and seasonal variations.

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‍Frequently Asked Questions

What is the per diem rate for Texas?

Texas per diem rates vary by location. Major metros like Dallas ($250-$271), Austin ($253-$267), and Arlington/Fort Worth ($261) have higher rates than the standard Texas rate of $178. Rates also vary by month in some cities.

Which Texas cities have special per diem rates?

Texas has designated rates for Arlington/Fort Worth/Grapevine, Austin, Big Spring, Dallas, Galveston, Houston, Midland/Odessa, Pecos, Plano, San Antonio, and South Padre Island. All other Texas locations use the standard rate of $110 for lodging and $68 for M&IE.

Are hotel taxes included in the lodging rate?

No. Texas hotel occupancy taxes (typically 15-17% in major cities) are claimed separately from the lodging maximum. Employees submit the actual room cost (up to the location's limit) and add full tax amounts as a distinct line item.

How is per diem calculated for travel days?

Travel days (first and last day of your trip) receive 75% of the meals and incidentals allowance. For Dallas, that's $60 instead of the standard $80. For standard rate locations, it's $51 instead of $68. Lodging reimbursement follows normal rates for nights actually stayed.

When do Texas per diem rates change?

Rates update each October 1st at the federal fiscal year start. Current rates run from October 1, 2025, through September 30, 2026.

What happens if I can't find lodging within the per diem rate?

If you cannot secure lodging at or below the published per diem rate, you may be able to obtain reimbursement above the cap, but only with explicit approval and documentation, as per the Federal Travel Regulation (FTR) requirements.

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