Tax year 2026 brings some significant changes to what companies can and can’t deduct as it relates to meals during travel in connection with entertainment and on employer premises. These updates reshape longstanding deduction practices, requiring businesses to rethink how to categorize, document and justify food-related expenses moving forward.

Key Changes for 2026:

• Meals provided for employer convenience, including breakroom items, are now fully nondeductible.
• Meals provided in an employer-sponsored eating facility are now fully nondeductible.
• Itemization is now required for meals in connection with entertainment.
• Unless for overnight travel, meals at offsite or remote facilities are no longer deductible.

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