The Meal Deduction: When It Is 50% vs 100%
Most business meals are 50% deductible, but a few situations are 100%. Here is a clear list of what falls into each bucket, and why the temporary 100% restaurant rule is gone.
Mylo Team • September 4, 2026 • 2 min read
The short answer
For business meals, 50% is the rule and 100% is the exception. Unless a specific situation applies, plan on deducting half. The confusion comes from a temporary pandemic-era rule that made restaurant meals fully deductible in 2021 and 2022; that has expired, so the standard 50% limit is back.
What is 50% deductible
The everyday cases: a meal with a client, a working meal while traveling, or a team lunch tied to business. These qualify at 50% when they are ordinary and necessary, not lavish, and you or an employee are present. This is the bucket most of your meal spending falls into.
What stays 100% deductible
A short list of situations remain fully deductible: food and beverages for a company-wide social or recreational event, such as a holiday party or team outing; meals you sell to customers in the normal course of business; food provided to the general public for promotion; and meals treated as taxable compensation to an employee. These are specific, so do not assume a normal client dinner qualifies.
Keeping the buckets straight
Because two rates apply, categorizing meals correctly matters, and each still needs an itemized receipt and business purpose. Tag them the way you would when you categorize business expenses, and see are business meals tax deductible for the underlying qualifying rules.
The faster way: let Mylo keep the proof automatically
This is where Mylo quietly does the heavy lifting. It works in the background to capture every receipt from your inbox and the stores you shop at, matches each one to the card charge that paid for it, and files it as a categorized expense, so when you claim your business meals the proof is already there. No new card and no manual entry: Mylo works on top of the Visa, Mastercard, or Amex you already use, and syncs clean, categorized expenses to QuickBooks. Free for individuals on iOS, Android, and the web; teams are $9/user/mo (30-day free trial).
Sources: IRS guidance on meals and entertainment (IRC section 274, Publication 463). This article is general information, not tax advice. Rules change and situations differ, so check with a qualified tax professional for your situation.
Frequently asked questions
Are business meals 50% or 100% deductible now?
Most are 50%. The temporary 100% deduction for restaurant meals applied only to 2021 and 2022 and is no longer in effect, so the standard 50% limit is back for ordinary business meals.
Which meals are 100% deductible?
Common examples include food and beverages for a company-wide social event like a holiday party, meals you sell to customers, meals provided to the public for promotion, and meals treated as taxable compensation to employees.
Is entertainment ever deductible?
Generally no. Entertainment is not deductible. If a meal is provided at an entertainment event, the meal portion can still be 50% deductible when it is billed or itemized separately.
How does Mylo help?
Mylo captures each meal receipt and lets you categorize it, so the 50% and 100% amounts stay separate and each is backed by an itemized record.
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Mylo Team
The Mylo Team writes practical guides on receipts, expenses, write-offs and keeping your books clean, from the people building Mylo, the app that puts receipts and expenses on autopilot.
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