What’s Changing After 2025?
Right now, meals provided to employees on your business premises for the convenience of the employer are 50% deductible.
Starting January 1, 2026, this deduction goes away completely.
These meals will be 0% deductible, ending a long-standing tax benefit.
Under the current rules (through 2025), these meals must:
Be provided at the employer’s place of business (such as a company cafeteria)
Be offered for business reasons (for example, keeping employees on-site during emergencies or long shifts)
Be properly documented, including the business purpose and number of employees served
After 2025, these meals will no longer be deductible, so this is a good time to review your policies and plan ahead.
What’s Staying the Same?
Not all meal deductions are being eliminated. The following rules remain unchanged:
50% Deductible Meals
You may still deduct 50% of the cost for:
Meals with clients or prospective clients
Meals while traveling for business
As long as:
The expense is ordinary and necessary
The taxpayer or employee is present
The meal is not lavish or extravagant
Food costs are listed separately from entertainment
100% Deductible Meals
These meals remain fully deductible:
Company-wide events, such as holiday parties or summer picnics
Meals provided to the general public