Business Meals Deduction Calculator (50% in 2026)

Business meals are 50% deductible in 2026. The temporary 100% deduction for restaurant meals under the CAA-2022 expired December 31, 2022. A handful of meal categories remain 100% deductible — company-wide events, public promotional events, meals included in employee taxable compensation, and meals sold to customers in the ordinary course of business.

The 50% Default And Its Exceptions

Client meals, prospect meals, business travel meals, office meeting meals, and most employee meals (provided for employer convenience) are all 50% deductible in 2026. Beverages count as meals for this purpose. Entertainment (sports tickets, concerts, golf) is 0% deductible — completely eliminated by TCJA in 2018 — unless severable food and drink are itemized on a separate receipt. The 50% rule applies to the cost; tax and tip are included.

Documentation That Survives Audit

The IRS routinely disallows meals deductions when documentation is thin. Build a defensible record. (1) Receipt showing date, amount, and place. (2) Business purpose — what was discussed or accomplished. (3) Attendees and relationship — names of clients/prospects and their company. (4) For client meals — note who paid and that a business discussion occurred during or directly before/after the meal. (5) For meals under $75 you don't strictly need the receipt but you do need the other elements. Use a notes field in your accounting tool to capture all five elements at the time of the expense.

Last updated May 2026. Sources: IRS Publication 463.