Business meal deduction 2026: 50%, 100% or 0%?
Add each expense, see what is deductible. Source: 26 U.S.C. 274 and IRS Publication 463 (2025), chapter 2
50% deductibleLunch with a client, you or an employee present, not lavishsource: 274(k), 274(n)(1)
0% deductibleConcert or game tickets, golf round, country club duessource: 274(a)(1), 274(a)(3)
100% deductibleHoliday party, summer picnic for employeessource: 274(e)(4)
Total spend
$920.00
Deductible
$560.00
| Expense | Amount | Rate | Deductible |
|---|---|---|---|
| Business meal with a client or prospect | $120.00 | 50% | $60.00 line 1 |
| Entertainment (tickets, golf, club dues) | $300.00 | 0% | $0.00 line 2 |
| Company-wide party or picnic for employees | $500.00 | 100% | $500.00 line 3 |
| Total | $920.00 | $560.00 |
Estimated tax saving: $123.20 (estimate: deductible x rate; ignores self-employment tax and state tax)
General information, not tax advice. Assumes meals are ordinary, necessary and not lavish, and that you can substantiate them.
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100% / 50% / 0% at a glance
100%
Fully deductible
- Company-wide party or picnic for employees source: 274(e)(4)
- Meals taxed to the employee as wages source: 274(e)(2)
- Food offered free to the general public source: 274(e)(7)
- Food you sell to customers source: 274(e)(8)
50%
Half deductible
- Business meal with a client or prospect source: 274(k), 274(n)(1)
- Meal while traveling away from home overnight source: 274(n)(1), 274(n)(3)
- Food at an event, bought or billed separately source: Pub. 463, Meals
0%
Not deductible
- Entertainment (tickets, golf, club dues) source: 274(a)(1), 274(a)(3)
- Employer-provided meals: on-premises, for your convenience source: 274(o)
Travel meals are 80% for Department of Transportation hours-of-service workers. The 2021-2022 100% restaurant rule is not available for 2026 (it covered amounts paid before January 1, 2023). Office coffee and snacks are not settled by the statute text we checked, so ask a tax professional.
What to keep for each meal
- AmountItemized receipt, tip included
- DateDay of the meal
- PlaceRestaurant name and location
- Business purposeWhat was discussed or achieved
- Who attendedNumber of people and their business relationship to you
Source: IRS Publication 463 (2025), chapter 5, Recordkeeping.
Business meal deduction FAQ
Are business meals 100% deductible in 2026?
No. Business meals are generally 50% deductible (26 U.S.C. 274(n)(1)). The 100% restaurant rule applied only to amounts paid or incurred before January 1, 2023, so it is not available for 2026. A few meal types stay at 100%, such as a company-wide employee party or food you sell to customers.
Can I deduct client entertainment such as golf or concert tickets?
No. Entertainment expenses are not deductible since 2018 (26 U.S.C. 274(a)(1)), and club dues are not deductible either. Food bought separately at an event, or listed separately on the invoice, can still be 50% deductible (IRS Publication 463).
What percentage can I deduct for meals on a business trip?
50% of the actual cost or of the standard meal allowance. Individuals subject to Department of Transportation hours-of-service limits deduct 80% of meals consumed while away from home during or incident to that duty (26 U.S.C. 274(n)(3)).
Is the company holiday party deductible?
Expenses for recreational or social activities primarily for the benefit of employees, such as a holiday party or summer picnic, are not subject to the 50% limit (26 U.S.C. 274(e)(4); Pub. 463). The exception does not cover highly compensated employees.
What changed for employer-provided meals after 2025?
For amounts paid or incurred after December 31, 2025, section 274(o) disallows the deduction for meals described in section 119(a) (on the business premises, for the employer's convenience) and for the operation of an employee eating facility described in section 132(e)(2), with exceptions for food sold to customers and certain crews and remote sites.
What records do I need to deduct a business meal?
Amount, date, place, business purpose and the business relationship of the people you ate with. A restaurant receipt can prove a meal if it shows the restaurant's name and location, the number of people served, and the date and amount (IRS Publication 463, chapter 5).
Sources (checked November 2026)
- 26 U.S.C. 274: subsections (a), (e), (k), (n), (o).
- IRS Publication 463 (2025), chapter 2: Meals, 50% limit, exceptions, and chapter 5 recordkeeping.
274(n)(3): “In the case of any expenses for food or beverages consumed while away from home (within the meaning of section 162(a)(2)) by an individual during, or incident to, the period of duty subject to the hours of service limitations of the Department of Transportation, paragraph (1) shall be applied by substituting "80 percent" for "50 percent".”
274(o): “Except in the case of an expense described in subsection (e)(8) or (n)(2)(C), no deduction shall be allowed under this chapter for (1) any expense for the operation of a facility described in section 132(e)(2), and any expense for food or beverages, including under section 132(e)(1), associated with such facility, or (2) any expense for meals described in section 119(a).” Effective: “The amendments made by subsection (d) [amending this section] shall apply to amounts incurred or paid after December 31, 2025.”
General information, not tax advice; ask a tax professional about your case. Related: per diem rates, self-employed expense tax savings, business trip with vacation days. Easy Trip Expenses is not affiliated with the IRS.