Meal Deductibility Changes for 2026

In 2017, the Tax Cuts & Jobs Act was passed by Congress which phased out the deductibility of employer-provided meals in 2026 and was modified slightly last year by the One Big Beautiful Bill.

According to TD 9925, IRC §274 disallows employer-provided meal deductions beginning 1/1/2026. What this means is that any breakroom snacks/refreshments and most meals supplied to employees are no longer deductible. Client & travel meals continue to be deductible at 50%, and company-wide employee socials continue to be deductible at 100%. Entertainment expenses continue to be non-deductible. Below is an at-a-glance 2025 vs. 2026 comparison chart.

Find out more information about tax law changes that were included in the One Big Beautiful Bill.  

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Disclaimer Lakesite Accounting gives information, not financial advice. This is informational only and not intended to serve as tax or financial advice. If you have any questions about the deductibility of your business’ meals and refreshments or entertainment expenses, please consult with your CPA or tax professional.