How to Deduct Business Meals in 2026: Tax Rules for Client, Travel, and Office Food
Here’s a little secret: nearly every small business owner we work with spends money on meals, and most of them aren’t deducting them correctly. Or worse, not deducting them at all.
We're talking about thousands of dollars in tax savings just sitting on the table. Literally.
That coffee meeting with a client? Deductible. Lunch while traveling for work? Deductible. Even the snacks you keep in your office for customers? Fully deductible.
Writing off meals as a small business owner isn't a loophole. It's a strategy. One that’s baked into the tax code, and chronically underused by people who've been told to "just play it safe” with expenses.
At AMD, we’re not into fear-based tax prep. We’re into clear strategy, done right. So here’s what you need to know about deducting meals and food expenses in 2026.
The Four Types of Business Meal Deductions
Business-related meal deductions break down into four core categories, each with different deduction rules:
Dining with clients, prospects, or vendors
Meals while traveling for business
Office food and snacks
Event or gathering meals
Let’s walk through what’s actually deductible and how to track it.
1. Client Meal Deductions: IRS 50% Rule Explained
Deductible: 50%
If you're meeting with a client, prospect, or business partner and business is being discussed, 50% deductible according to IRS rules for 2026. This applies whether you’re grabbing coffee to talk through a deal or having lunch with a contractor to review a job.
Important caveats:
It must be a bona fide business discussion.
The expense can’t be “lavish or extravagant” (IRS language, not ours).
You can include food, tip, and bar tab - but only for your portion if you’re splitting the check.
So yes, that lunch meeting counts. Just keep it reasonable and document who you met with and what was discussed.
Example: You meet a potential client for lunch at Panera. Total bill: $32. You discuss their upcoming project needs for 45 minutes. That's a $16 deduction (50% of $32). Do that twice a week for a year? That's $1,664 in tax write-offs for client meals—just from lunch meetings you were already having.
2. Business Travel Meals: What Counts as Deductible
Deductible: 50%
Business travel opens up an entirely new category of deductions - especially for meals. When you're away from your "tax home" (typically your main place of business), your meals are deductible even if you’re eating alone.
Whether you’re on a two-day property tour or attending a workshop in another city, those meals become a business write-off as long as the trip qualifies.
What doesn’t count?
Your regular commute. If you drive to the same office or job site every day, that's not business travel (even if it’s 50 miles away). But if you're traveling to a conference, visiting a client in another city, or attending a multi-day training, those meals qualify as deductible travel meals.
If you're truly away from your base of operations, meals eaten alone or with others (while discussing business) are both 50% deductible. Keep receipts, document details.
3. Office Snacks and Employee Meals: 50% or 100%?
Deductible: It depends
Here’s where things get interesting. Office food is often one of the most misunderstood (and miscategorized) expenses we see in client books.
If it’s for your customers or clients: 100% deductible
Think: snacks at your open house, drinks in the waiting room, or boxed lunches for a client workshop. This qualifies as client-facing food expense under IRS guidelines.
If it’s for your employees: 50% deductible
Friday team lunches? Bagels in the breakroom? Job site energy drinks? They all fall under this category.
The IRS treats client hospitality differently than team perks. Track these separately or you'll lose half the deduction.
4. Meals at Events or Gatherings
Deductible: 100%
Throwing a holiday party? Hosting a training event with lunch provided? That food is fully deductible if you follow the rules.
The key here is who’s attending.
The majority of the guests must be legitimate employees or vendors. If it's just you and your business partner, or a gathering of friends who happen to be on payroll, the IRS might push back.
Used correctly, this deduction is a win-win: it boosts morale, builds culture, and lowers your tax bill at the same time.
What NOT to Deduct
We've seen it all. Here’s what doesn’t qualify as a business meal deduction:
Meals with your spouse (unless they're a legitimate employee working that day)
"Networking" dinners with friends who happen to own businesses
Groceries for your home kitchen (even if you "sometimes" discuss work at dinner)
Your daily Starbucks run (unless you're meeting a client there)
A steak dinner to celebrate your dog's birthday
The IRS Doesn’t Hate Your Latte. It Just Wants a Reason for It
Too many small business owners treat meals as an afterthought. We treat them as a line item worth optimizing.
When you understand what qualifies and how to properly document it, dining and food expenses become an easy, consistent way to reduce your taxable income without changing your lifestyle.
Ready to Stop Leaving Money on the Table?
Most business owners are leaving $5K-$15K in meal deductions on the table every year. Either because they don't know the rules, their bookkeeping is a mess, or their accountant never bothered to ask.
AMD clients get proactive, year-round advising on exactly these kinds of strategies—so you can stop guessing and start saving with confidence.
Schedule a discovery call to review your business meal deductions, tax strategy, and expense tracking for 2026.”. You might be surprised at what you're missing.
Schedule your free Discovery Call today.
FAQ: Business Meal Deductions
Do I need receipts for every meal?
Yes, for any expense over $75. Below that, the IRS technically allows other documentation, but we recommend keeping receipts for everything. It's just cleaner.
Can I deduct meals if I'm self-employed with no employees?
Absolutely. Solo entrepreneurs can still deduct client meals (50%) and meals while traveling for business (50%).
What if I forget to track who I met with?
Start now. The IRS wants proof of a business purpose. A calendar note or email confirmation works. No documentation = no deduction if you get audited.
Can I use per diem rates for meals instead of actual expenses?
Yes, if you're traveling for business. The IRS allows business owners to use federal per diem rates (a daily flat rate) for meals and incidentals when traveling overnight for work. This can simplify recordkeeping, especially if you travel often. Just remember:
You can’t claim both per diem and actual meal costs.
You still need to document the purpose and location of the trip.