How to Deduct Meals and Travel in 2026

Navigate 2026 business meal and travel deduction rules with current rates, documentation requirements, and compliance frameworks.

1. Apply the 50% meal deduction rule. Business meals are 50% deductible in 2026 (the temporary 100% deduction expired December 31, 2022). Meals must be ordinary and necessary, not lavish or extravagant, and have a clear business purpose. Client dinners, employee meals during travel, and conference food qualify.
2. Document the business purpose. Record who attended, where you ate, the business topic discussed, and the total cost within 60 days. Use receipts for amounts over $25. Digital expense apps work, but ensure you capture all four elements: amount, time/place, business purpose, and business relationship.
3. Deduct 100% of qualifying travel costs. Transportation, lodging, and incidental expenses are fully deductible when the primary purpose is business. The trip must be overnight or long enough to require sleep or rest. Combine business and personal? Allocate costs by days spent on each purpose.
4. Use the standard mileage rate for vehicle expenses. Deduct 70 cents per business mile in 2026 (rate typically adjusts annually). Track date, destination, business purpose, and odometer readings. Alternatively, deduct actual costs (gas, repairs, depreciation) but maintain detailed records and calculate business-use percentage.
5. Handle per diem vs. actual expense methods. Use GSA per diem rates for meals and incidentals ($59-79 per day in most cities as of 2026) or track actual costs. Per diem is simpler but caps your deduction. Actual expense method requires receipts but allows full deduction of legitimate costs.
6. Separate personal from business expenses. Personal portions of mixed-purpose trips are not deductible. If you extend a business trip for vacation, deduct transportation based on business necessity. Meals and lodging during personal days don't qualify, even if the overall trip had business purpose.