Most business meals are 50% deductible in 2026. A meal counts when you’re there, it isn’t lavish, and it’s with a client, prospect, contractor or other business contact, or you’re eating while traveling overnight for work. Entertainment, like tickets or a round of golf, is not deductible at all. Your own lunch on an ordinary workday isn’t either.
What counts as a business meal
The IRS test has four parts. All four have to be true:
- The expense is ordinary and necessary for your business.
- It isn’t lavish or extravagant for the circumstances.
- You, or someone who works for you, are there.
- The food is for you and a business contact: a client, customer, prospect, supplier, contractor or adviser.
A coffee with a prospect counts. So does lunch with the designer you subcontract to. Eating alone at your desk, or lunch with a friend where you mention work, doesn’t.
50%, 100% or nothing
| Expense | Deductible |
|---|---|
| Meal with a client or contractor | 50% |
| Meals on overnight business travel | 50% |
| Party or picnic for all your staff | 100% |
| Food you sell, or give to the public | 100% |
| Tickets, golf, concerts | 0% |
| Your own everyday lunch | 0% |
The temporary 100% deduction for restaurant meals ended after 2022. If you have employees, one more change starts in 2026: meals you provide at your own premises for your convenience, like a staff cafeteria, are no longer deductible at all.
Meals while traveling
When work takes you away from home overnight, your meals on the trip are 50% deductible even if you eat alone. You can keep receipts, or use the federal per diem rate for meals in that city instead of the actual cost. Self-employed people can use the per diem for meals, but not for lodging. Either way, 50% of it is deductible.
The records to keep
For every meal you deduct, write down:
- the amount, date and place;
- who you ate with, and their business relationship to you;
- the business purpose: what you discussed, or the work it was for.
Keep the receipt for anything $75 or more. A note on the receipt, or in your expense app the same day, is enough. Meals go on line 24b of Schedule C, at the deductible amount.
A worked example
A freelance photographer spends $84 on lunch with a wedding planner who refers clients, $210 on meals during a three-day shoot in another state, and $150 on concert tickets for a client. The lunch gives a $42 deduction and the trip meals $105. The tickets give nothing. In the 22% bracket with 15.3% self-employment tax, the $147 deduction saves roughly $50, so the meals still cost most of what was paid.
For the rest of what you can write off, see the self-employed deductions list.
Questions, answered
Are business meals 100% deductible in 2026?
No. The temporary 100% deduction for restaurant meals ended after 2022. Most business meals are 50% deductible in 2026. Staff parties for everyone and food sold to customers are still 100%.
Can I deduct my lunch if I'm self-employed?
Not an ordinary workday lunch on your own. Meals are deductible when they're with a business contact, or when you're traveling away from home overnight for work, and then at 50%.
Is coffee with a client deductible?
Yes, at 50%, if you're there, it isn't lavish, and the meeting has a business purpose. Note who you met and what it was about.
Do I need a receipt for every business meal?
You need a record of every meal: amount, date, place, who and the business purpose. A receipt is required for expenses of $75 or more.
Can I deduct entertainment with a client?
No. Since 2018 entertainment, such as sports tickets, concerts and golf, isn't deductible. Food bought separately at the event can still be 50% deductible if it's itemized on its own.
Sources
- Publication 463, Travel, Gift, and Car Expenses — IRS. The 50% limit, the business meal test, entertainment, travel meals and the record rules.
- Instructions for Schedule C — IRS. Meals on line 24b at the deductible amount.
- Per diem rates — GSA. The meals rate by city for travel.
