What M&IE Covers
The meals and incidentals expense (M&IE) stipend is a daily tax-free allowance for food and small expenses while working away from your tax home. "Incidentals" includes tips, laundry, and other minor costs of being away from home.
M&IE rates fall within a narrower range than housing. The GSA sets rates from $59 to $79 per day for most locations, with $59 as the standard rate.
How M&IE Is Calculated
Your agency takes the GSA M&IE per diem rate for your location and multiplies by 7 for your weekly amount. At $69/day, that's $483/week. Over a 13-week contract, that's $6,279 in tax-free income from M&IE alone.
Quick math: Standard $59/day = $413/week (~$1,790/mo). High-cost $79/day = $553/week (~$2,398/mo). The difference adds up significantly over a year of traveling.
M&IE Rate Tiers
$79/day — Major Cities
NYC, San Francisco, D.C., Chicago, Boston. Weekly: $553.
$69–$74/day — Mid-Tier Cities
Denver, Seattle, Austin, Portland, Nashville. Weekly: $483–$518.
$59/day — Standard Rate
Most smaller cities and rural areas. Weekly: $413.
Maximizing Your M&IE
Since M&IE is a fixed stipend, you keep everything regardless of actual spending. If your M&IE is $69/day and you spend $30 on meals, the remaining $39 is yours tax-free.
Cook at home, meal prep on weekends, take advantage of free workplace meals, and pack lunches. The difference between spending $30/day and $60/day on food is over $2,700 tax-free per 13-week contract.