03/10/2026
Beginning in 2026, the One Big Beautiful Bill Act (OBBB) changes several tax rules related to business meals and workplace food expenses. Below are some important reminders:
Workplace meals and snacks are no longer deductible.
Starting in 2026, this is the most significant change. Items previously treated as de minimis fringe benefits—such as in-office snacks, beverages, and meals provided for employees working late for the convenience of the employer (when not included in the employee’s taxable income)—are now 0% deductible.
Meals for business meetings remain partially deductible.
Meals directly related to necessary business meetings continue to be 50% deductible.
Meals during business travel remain deductible.
If you are traveling for business and the trip requires an overnight stay, your meals are generally deductible. As with most business meals, the deduction is limited to 50%.
Entertainment expenses remain non-deductible, but company-wide events are allowed.
Entertainment expenses, such as purchasing tickets to take a client to a sporting event, remain non-deductible. However, expenses primarily for the benefit of employees—such as team-building activities or company-wide parties—are still 100% deductible. Additionally, charitable contributions made in exchange for event tickets (such as college athletic events) are not deductible as business entertainment expenses.
