San Diego Per Diem Rates: A Small Business Guide for 2025

Whether you’re a small business owner or an employee for one that involves work-related travel in California, you’ll want to know San Diego per diem rates to properly manage your expenses. Understanding per diem rates can help employees budget effectively to avoid out-of-pocket costs and ensures employers don’t encounter any surprises when reimbursing employees. 

Let’s break down what per diem in San Diego entails and how it works.

What is per diem in San Diego?

Per diem is a daily allowance for expenses incurred while traveling for work. It covers meals, lodging, and incidental expenses like tips and transportation. The U.S. General Services Administration (GSA) sets these rates to standardize reimbursements for federal employees and contractors.

While travel reimbursement on a per diem basis is not legally required, it is generally a helpful guideline to use when it comes to travel time pay. Travel time pay is also considered differently from break or meal time. 

Rates are standard across the continental United States (CONUS) except for in non-standard areas (NSAs) like San Diego. That means knowing California per diem rates is not enough—it’s important to understand the San Diego per diem rate for the planned period of travel for accurate reimbursement.

Example per diem expenses.

• Meals: Breakfast, lunch, and dinner costs fall under this category.
• Lodging: Hotel or other accommodation expenses are included.
• Incidental expenses: Tips, local transportation, and other minor costs are covered.

Understanding these categories helps you plan your travel budget and ensures employees get reimbursed accurately.

How does San Diego's per diem work?

When an employee travels to San Diego for work, their employer reimburses them for travel expenses through per diem rates or a separately set rate. These rates cover daily costs for meals, lodging, and incidental expenses. The first and last day of travel only cover 75% of the usual per diem rate. 

The U.S. General Services Administration (GSA) sets per diem rates, and they can vary based on the location and time of year. Employers use per diem rates to streamline the reimbursement process. Instead of submitting individual receipts for each meal or hotel stay, employees receive a daily allowance. This simplifies accounting and ensures reimbursement is quick.

Rates vary depending on where you stay in San Diego and the time of year. For example, peak tourist seasons might have higher lodging rates. Employees should always check the rates their employer is using before planning a trip to ensure they stay within the allowed budget. Employers should ensure their per diem rates are up-to-date with the federal rates for that time of year and area. 

To get reimbursed, employees need to submit an expense report. This report should detail travel dates, the per diem rates for each day, and any additional expenses. The employer will then review and approve the report, reimbursing employees according to the set rates. This process ensures employees don't have to cover work-related travel costs out of pocket.

How much is per diem in San Diego?

The per diem for San Diego changes depending on the time of year and is subdivided between different types of expenses. 

Lodging per diem rate.

Does per diem include lodging? Yes, the lodging per diem rate covers the cost of a hotel or other accommodations while an employee is in San Diego for work. The U.S. General Services Administration (GSA) sets these rates based on the average cost of lodging in the area. 

Depending on the time of year and specific location within San Diego, the lodging rate can vary. Always check the current rate before booking accommodations to ensure it falls within the allowed per diem.

Meals and incidental expenses (M&IE) per diem rate.

The Meals and Incidental Expenses (M&IE) per diem rate covers daily costs for meals and other minor expenses. This rate includes breakfast, lunch, and dinner, as well as incidental expenses like tips and local transportation. 

The GSA sets these rates to simplify the reimbursement process, so employees don't need to keep track of every meal receipt. The M&IE per diem rate for San Diego can vary depending on the time of year, so make sure to verify the current rate before the trip.

Combined per diem rate.

The combined per diem rate includes both the lodging and M&IE rates, providing a comprehensive daily allowance for all travel expenses. This rate simplifies budgeting and reimbursement, as it consolidates all daily costs into a single figure. 

The combined rate varies based on the specific lodging and M&IE rates for San Diego, which can fluctuate throughout the year.

‍What are the San Diego per diem rates for 2024?

Like other non-standard areas, the per diem in San Diego for 2024 depends on time of year and changes from year-to-year. The GSA releases new rates annually to scale with cost of living and other economic factors, so business owners and employees should stay updated on the updates. 

New rates began in October 2024 and extend until September 2025. Here are the lodging, M&IE, and combined rates for this 12 month period. 

Lodging rate for San Diego in 2024-25. 

• October 2024 - May 2025: $199
• June & July 2025: $237
• August & September 2025: $199

M&IE rate for San Diego in 2024-25. 

• M&IE total: $86
• Breakfast: $22
• Lunch: $23
• Dinner: $36
• Incidental expenses: $5
• First and last day of travel: $64.50

‍How to calculate per diem in San Diego.

It’s one thing to know the numbers—it’s another to put them into practice. Here’s an example of how to calculate per diem hourly rate for a 5-day, 4-night trip in San Diego. 

1. Determine the applicable rates.

Use the above numbers and double check them against the  GSA website to find the most recent rates for lodging and meals and incidental expenses (M&IE). ‍

2. Calculate total per diem.

Once you have the applicable rates, calculating your total per diem is straightforward. Multiply the daily lodging rate by the number of nights you will stay. Do the same for the M&IE rate, multiplying it by the number of days you will be traveling. Add these two amounts together to get your total per diem. 

For example, if the lodging rate is $199 per night and the M&IE rate is $86 per day, and you are traveling for five days and four nights, your calculation would look like this:

• Lodging: $199 x 4 nights = $796
• M&IE: $86 x 5 days = $430
• Total Per Diem: $796 + $430 = $1226‍

3. Adjust for first and last days of travel.

The GSA guidelines specify that the first and last days of travel are reimbursed at 75% of the M&IE rate. This adjustment accounts for partial travel days when you might not incur a full day's worth of expenses. Conveniently, the GSA provides the first and last day amount. 

If your trip spans five days, with the first and last days being partial travel days, your total M&IE calculation would be:

• First Day: $64.50
• Last Day: $64.50
• Full Days: $86 x 3 days = $258
• Total M&IE: $64.50 + $64.50 + $258 = $387

Add this adjusted M&IE total to your lodging costs to get the final per diem amount. In this case:

• Lodging: $796
• Adjusted M&IE: $387
• Total Per Diem: $796 + $387 = $1183

By following these steps, you can accurately calculate your per diem for a trip to San Diego, ensuring you stay within budget and receive proper reimbursement.

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5 Tips for maximizing San Diego per diem.

It’s in the best interest of both employers and employees to stick to a per diem rate when traveling for work. Employees don’t want to pay out-of-pocket, and employers want to be able to budget correctly for necessary travel. Here are some ways to reduce expenses on a business trip.

• Choose accommodations wisely. Look for hotels that fall within the lodging per diem rate set by the GSA. Many booking websites allow you to filter options by price, making it easier to find suitable accommodations. Staying closer to the work site can reduce transportation costs, further maximizing per diem allowance.
• Plan meals carefully. Many hotels offer complimentary breakfasts, which can save a significant amount over the course of your stay. For lunch and dinner, look for affordable dining options nearby or consider preparing some meals in the hotel if there is a kitchenette available. 
• Keep detailed records. Maintaining detailed records of expenses is crucial for accurate reimbursement. Employees should save all receipts related to meals, lodging, and incidental expenses and employers should require these records to be provided in an expense report to avoid discrepancies during the reimbursement process. 
• Use per diem rates for budgeting. Calculating the total per diem allowance based on the number of days an employee will be traveling provides a clear understanding of how much can be spent each day on lodging, meals, and incidental expenses. 
• Maintain clear policies. Employers should make sure travel reimbursement policies and rates are clear and easily available to employees. Specific requirements or limitations regarding per diem reimbursements such as certain hotel choices or specific transportation use should be clearly laid out. 

Pay out travel reimbursements with ease. 

If you’re a small business owner, you have plenty of things on your plate to worry about without needing to manually calculate and pay out travel reimbursements too. But you know it’s important to compensate your employees fairly and promptly. 

That’s why you can rely on Homebase payroll to automate processing payments for your employees while staying compliant with local laws. That way, you can focus your time on growing your business with a happy hourly team.   

Ready to simplify your business travel and payroll management? Sign up for Homebase today and take the hassle out of managing your team's travel expenses and payroll.

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