Business meals: what you can actually deduct
Most business meals are 50% deductible when you or an employee are there, the food isn't lavish, and it's with a client, customer or similar business contact. Entertainment, like game tickets or golf, isn't deductible at all. Keep a record of who you met, where and why.
Updated November 2026 · By Pankil Kumar, Managing Partner
Quick facts
- Most meals. 50% deductible with a clear business purpose
- Entertainment. Tickets, golf and shows are not deductible
- Company party. Parties for all employees can be fully deductible
What's deductible, and how much?
| Expense | Deductible |
|---|---|
| Client lunch or dinner | 50% |
| Meals while traveling overnight for work | 50% |
| Coffee with a prospect | 50% |
| Holiday party for all employees | 100% |
| Game tickets or golf with a client | 0% |
| Food bought separately at an event | 50%, if listed separately |
| Your regular lunch, alone | 0% |
What does a meal need to qualify?
The IRS looks for a real business connection. You or an employee must be present, it can't be lavish or extravagant under the circumstances, and it has to be with a current or potential customer, client, consultant or similar contact. Eating alone counts only when you're traveling away from home overnight on business.
Why don't sports tickets count?
The 2017 tax law removed the deduction for entertainment. Bundling doesn't get around it. If food comes with the ticket price, the whole thing counts as entertainment. If you buy food separately or it's billed separately, that food can still qualify. You can't push the price of the event onto the food line either.
What about office snacks and team lunches?
These rules have changed, so tread carefully. Under rules that took effect in 2026, the deduction for many meals provided at the workplace for the employer's convenience went away, with some exceptions. Company-wide social events stay deductible in full if they're mainly for employees and not limited to the top earners. Ask before you budget on it.
What records should you keep?
Note the amount, date, place, who was there and what you discussed. Do it the same day. A photo of the receipt with a line in your app is plenty. Under $75, you may not need the receipt itself, though you still need the details.
Keep meals on their own line in your chart of accounts, so your preparer can apply the 50% limit. Lumping them in with office expenses is one of the most common errors we see. For travel-day meals, you may be able to use the IRS standard meal allowance rather than actual costs.
Sources
General information, not tax advice for your situation.
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See our business tax returns serviceCan I deduct meals with my business partner?
Sometimes, if you're there to discuss business. Regular lunches with a co-owner are hard to support, so keep notes.
Are meals 100% deductible in 2026?
No. The temporary 100% rule for restaurant meals ended after 2022. Most meals are back to 50%.
Can I deduct meals if I'm self-employed and work from a cafe?
Not just for working there. The meal has to meet the business meal rules, and your own daily food is personal.
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