Business meal and entertainment deductions have shifted more than once—between the Tax Cuts and Jobs Act (TCJA) of 2018 and the Consolidated Appropriations Act (CAA) of 2021—and they're shifting again in 2026. Before you write off the cost of feeding your team, your clients, or yourself, it's worth knowing exactly what's deductible now and what changes next year.
➡️ Disclaimer: The content in this article has been reviewed by a licensed Certified Public Accountant (CPA). Before writing off any expenses on your tax return, it's always a good idea to consult with a tax professional who can review your unique situation.
Overview: meals and entertainment deductions for 2025 and 2026
Business tax deductions can be confusing. Here's a quick overview of which meals (and what kind of entertainment) you can write off on your business tax return:
Type of expense | Percent deductible |
|---|---|
Food for company parties | 100% deductible |
Client and business meals | 50% deductible (was 100% for tax years 2021 and 2022; that break has expired) |
Food for charitable causes | 100% deductible |
Meals for in-office meetings | 50% deductible in 2025; 0% starting 2026 |
Snacks for employees | 50% deductible in 2025; 0% starting 2026 |
Renting an entertainment facility | 0% deductible |
Membership dues for an entertainment facility | 0% deductible |
Entertaining clients | 0% deductible |
Now let's look at each of these more closely.
What's changing for 2026: employer-provided meals
The biggest change is coming for meals you provide to your own employees. Through tax year 2025, office snacks, meals served at in-office meetings, and meals provided for the employer's convenience (like food for a team working late) are 50% deductible. Starting January 1, 2026, that deduction drops to 0%.
The 2025 One Big Beautiful Bill Act added a new section to the tax code (IRC §274(o)) that eliminates the deduction for meals furnished for the convenience of the employer and for meals at an employer-operated eating facility, for amounts paid after December 31, 2025 (CohnReznick). Most tax advisors read this as sweeping in office snacks and breakroom food as well (Plante Moran). A few narrow, industry-specific exceptions remain—certain meals on commercial fishing vessels and offshore oil and gas platforms, for example.
The IRS has not yet issued regulations on exactly which de minimis items are caught, so treat borderline breakroom snacks as nondeductible from 2026 but confirm the specifics with your tax professional.
Fully deductible expenses: rules and examples
Whether you're newly self-employed or a seasoned small business owner, you don't want to leave any fully deductible expenses off your tax return.
You get a 100% meal deduction when you can reasonably prove the food went to at least half your employees. If you throw a company holiday party (or a team-wide summer picnic), or hold a business meeting where you provide lunch for the whole team, those meal expenses are 100% deductible.
You can also claim a 100% deduction when you're dealing with the public. Refreshments or snacks for the public can be fully deductible if you can reasonably estimate they were eaten by at least 50% of clients—this includes restaurants and cafés offering sidewalk samples.
Meals you treat as taxable compensation to an employee (reported on their W-2) also stay 100% deductible, as does food you sell to customers for its fair value.
Donating food to a qualifying nonprofit can be fully deductible as a charitable contribution.
A few rules to keep those charges fully deductible:
The meal is only deductible when you (the taxpayer) or an employee is present.
Any food bought at a grocery or convenience store for personal use is nondeductible.
Unnecessarily extravagant meals can't be deducted.
50% deductible expenses: rules and example
There are more 50% deductible expenses available to reduce your tax liability than fully deductible ones.
Any meal with a client is 50% deductible. If you invite friends or relatives, they can't be included in the business meal deduction—this is one of those moments where you'll have to separate your business taxes from your personal taxes, because you can still write off the business meal expenses you paid for your employees, clients, or yourself.
Through 2025, office snacks for employees and meals for employees working through mealtime (like emergency workers staffing a hotline during dinner hours) are also 50% deductible. Note the change above: starting in 2026, these employer-provided meals become nondeductible.
And while you can't deduct entertainment events, if you can separate the receipts for any food in a business entertainment setting, you can claim that food as 50% deductible.
Expenses that aren't deductible: rules and examples
The general rule is that no entertainment expense is deductible—this has held since the TCJA took effect in 2018. There's no wiggle room around writing off a ticket to take a client to a sporting event or concert.
Other non-deductible entertainment costs include:
Renting an entertainment facility
Membership dues for an entertainment facility (for example, a country club)
If you get food as part of one bulk cost at an entertainment venue and can't separate it out, it won't be deductible either.
Record keeping 101: stay on top of your meals and entertainment deductions
To take advantage of any of the deductions above, keep track of all meals regardless of cost, and keep receipts for any meal over $75. In your account book or app, track the following details:
Amount (total cost)
Date
Place (name and location of the restaurant)
Business purpose
The names and business relationship of everyone at the meal
If you can't supply this information, you risk losing the deduction. Keeping your receipts organized can be tricky, but the tax savings make it worth it.
Relay can help. Relay is an online banking and money management platform built for small businesses, with up to 20 checking accounts and no monthly maintenance fees. You can dedicate one account to meals with business associates, another to travel, and another to special events like the company picnic—so you're not combing through one messy statement at tax time.
Then Relay helps you stay tax-ready with its receipt management feature: it reminds you and your team to upload receipts, then automatically attaches each one to the matching transaction. Open a Relay account to keep your meal receipts organized before tax season.
The bottom line on meals and entertainment deductions
From business meals to entertainment expenses, you don't want to misreport and miss out on legitimate deductions—or claim ones you can't. The safest move is to stay on top of your records and keep your receipts. And while you shouldn't give up on entertaining clients, don't expect a tax deduction for it. Keep an eye on the 2026 change to employer-provided meals, too, so you're not counting on a deduction that's going away.
Frequently asked questions
Are business meals tax deductible?
Yes—business meals are generally 50% deductible, whether it's a meal with a client, a business associate, or an employee. You (or an employee) must be present, the meal can't be lavish, and you need to keep a record of the amount, date, place, business purpose, and who attended.
Are client meals 100% deductible?
No. Client meals are 50% deductible. They were temporarily 100% deductible for tax years 2021 and 2022 under a pandemic-era rule for restaurant meals, but that break expired and meals reverted to the 50% limit.
Are office snacks and employee meals tax deductible?
Through 2025, office snacks and employer-provided meals are 50% deductible. Starting January 1, 2026, a new tax-code change makes them nondeductible (0%). IRS regulations on the finer details are still pending, so confirm your specific situation with a tax professional.
Is client entertainment tax deductible?
No. Entertainment expenses—sporting event tickets, concerts, country club dues—have been fully nondeductible since 2018. If food at an entertainment event is billed and receipted separately, that food can still qualify for the 50% meal deduction.
