As of January 1, 2026, meals you provide your crew for your own convenience are no longer deductible at all. Client lunches and travel meals still count, and the company cookout is still fully deductible.
If you buy pizza for the crew on a long pour day or keep the shop stocked with coffee, this change can quietly raise your tax bill. Here's what changed, what didn't, and how to set up your books so tax time is easy.
What changed?
Meals you provide employees for the business's convenience dropped from 50% deductible to 0% deductible in 2026. The change was written into the 2017 tax law and delayed until this year.
That covers meals that keep your team on site, such as lunch during a busy-season push, food at a working staff meeting, or an employer-run cafeteria. Your employees aren't taxed on these meals; the change only affects your deduction.
Quick reference for 2026
Holiday party, summer cookout or staff picnic open to everyone - 100%
Meals included in an employee's taxable wages - 100%
Lunch or dinner with a client or prospect - 50%
Meals while traveling overnight for work - 50%
Crew meals provided on site for your convenience - 0%
Food at working staff meetings or overtime shifts - 0%
Entertainment, such as a ballgame or golf with a client - 0%
What it means for contractors, landscapers and other trades
For most trade businesses, the biggest change is crew food. Pizza, sandwiches or coffee runs bought to keep everyone on the job site through a busy day are likely 0% deductible this year.
Crew lunches on a long day: likely no longer deductible. Keep buying them if they keep your team happy, just don't count on the write-off.
Client and supplier meals: still 50% deductible, as long as you note who you met and why.
Overnight jobs off the Cape: meals while you're traveling away from home overnight are still 50% deductible.
End-of-season party or holiday cookout: still 100% deductible when the whole team is invited.
A simple shift can help: if you love feeding the crew, an end-of-season party is fully deductible, while weekly job-site lunches are not.
What to do now
The fix is mostly in how your books are set up. A few small changes in QuickBooks keep every meal in the right bucket all year:
Split your meals account. Instead of one "Meals" account, use separate ones, such as Client & Travel Meals (50%), Crew & Staff Meals (0%), and Team Events (100%).
Note the who and why. For client meals, jot down who you met and the business purpose on the receipt or in the transaction memo.
Keep snacks on their own line. That way your CPA can apply whatever rule the IRS settles on.
Check your year to date. Re-sort any 2026 meals already in one lump account, so there are no surprises at tax time.