Business Meal Deductions 2025 — What’s 50% vs 100% Deductible (And What’s Changing)
Been buying lunch for clients, taking your team out after a long day, or attending conferences? These aren’t just friendly gestures—they're tax write-offs. But not all business meals are deductible the same way.
In 2025, most meals are 50% deductible, while under certain conditions, some are still 100% deductible. And starting in 2026, changes under the One Big Beautiful Bill Act (OBBBA) will eliminate deductions for some employer-provided meals entirely.
Let’s break down what you can deduct now—and plan smarter before the rules shift again.
What Can You Deduct? 50% vs. 100%
50% Deductible Business Meals
Most routine business meals fall into this category. You can deduct half the cost if:
You (or an employee) are present,
The expense is ordinary, necessary, and not lavish,
It’s clearly separate from entertainment costs, if present.
Common examples:
Lunch with a client to discuss business,
Meals consumed by traveling employees,
Meals at a conference or board meeting,
Snacks in the office for employees (if not lavish).
100% Deductible Meal Expenses
Certain meals remain fully deductible when they’re primarily for business purposes, such as:
Company-wide holiday parties or staff picnics,
Meals offered to the public for free,
Meals included as part of employee compensation (reported on their W-2).
Watch What’s Changing in 2026
Under current law, you can still deduct meals for employees (like overtime meals or breakroom snacks) as long as they’re for the employer’s convenience on-site. However, under OBBBA, beginning January 1, 2026, those deductions will vanish—no more tax breaks for on-site or convenience meals—though restaurant-related meal deductions remain intact for now.
Why This Matters
Every meal cost counts. At 50% deducted, even small expenses become meaningful savings.
Being a business owner comes with perks—this is one way you can recoup costs directly tied to revenue generation.
Awareness of upcoming changes ensures you don’t lose out next year on things like office meals and team snacks.
Smart Recordkeeping & Deduction Tips
Separate meal and entertainment costs meticulously—entertainment alone is no longer deductible.
Document: Keep location, attendees, business purpose, and amount for every meal over $75.
Assess each year: A 100% deduction for a holiday lunch may make sense now—document well before sunset in 2026.
Track changes in law: Plan to use up employee meals currently allowable, before they vanish after 2025.
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1. What’s deductible in 2025?
50%: Regular business meals (clients, travel, meetings).
100%: Office-wide events, public meals, or those included in compensation.
2. What changes in 2026?
Employer-provided meals for convenience will become nondeductible—including office snacks and cafeteria costs.3. Can meals count as entertainment?
No—entertainment itself isn’t deductible. Meals are only deductible if billed or purchased separately.4. How do I document meals?
Include receipt date, location, attendees, business relation, and purpose. Essential, especially for 50% deductions.5. Do I need to limit lavish meals?
Yes—the IRS expects business meals to be “not lavish or extravagant under the circumstances.”
Smarter meal deductions mean more savings in your business. In 2025, act strategically—claim what’s allowed now, and plan ahead for the coming changes.
Need help navigating your business meal deductions (and squeezing out every allowable penny)?
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