Tax deduction guide

Are business meals tax deductible?

Tax year 2026 · Updated October 15, 2026

When it counts

  • A meal with a customer, prospect, vendor or business partner where you talked business. 50%.
  • Meals while you are away from home overnight on business, even alone. 50%.
  • A working meal with an employee where business is the point. 50%.
  • Food and drinks that are bought or listed separately at an event. The event itself does not count, but the food can, at 50%, when a business contact was with you.
  • A party or outing held mainly for your employees, like a holiday party or a summer picnic. 100%. It must be for your employees in general, not just owners or highly paid staff, so it needs employees on your team.
  • Business meals go on Schedule C, line 24b.

When it doesn't

  • A meal by yourself on an ordinary workday. Even on a busy day, it is a living expense.
  • A meal with friends or family, unless they were genuinely business contacts and business was the reason for the meal.
  • Entertainment. Since 2018, golf, sporting events, concerts and club outings are not deductible, even when a client comes along and you talk business.
  • A meal that is lavish or extravagant.
  • Meals you give your employees at your business location. They were 50% deductible through 2025. For amounts paid after 2025 they are not deductible, apart from narrow exceptions such as restaurants and a few industries.

A worked example

You take a client to lunch to plan a new project.

  • Food: $70.00
  • Tax: $6.00
  • Tip: $14.00
  • Total cost of the meal: $90.00
  • Your write-off, 50%: $45.00

Tax and tip are part of the cost of the meal. The ride to the restaurant is not part of the meal, so the 50% limit does not apply to it. It can count on its own as a local business trip.

What records to keep

  • The receipt, with the date and the total.
  • Who was there.
  • What business you talked about. The receipt alone is not enough, so write one sentence on the spot.
  • For a trip meal, the travel dates and the reason for the trip.

Common questions

Is the tip included in the 50%?

Yes. Taxes and tips on a business meal are part of its cost, and the 50% limit applies to the whole amount.

Can I deduct a coffee with a client?

Yes, if business was the reason and you were there. Small meals follow the same rules as big ones.

Can I deduct meals when I work alone at a cafe?

No, not on an ordinary day. A meal by yourself counts only when you are away from home overnight on business.

Sources

Also cited by the WriteOff rules: 26 U.S.C. section 274 and Treas. Reg. sections 1.274-11 and 1.274-12.