Meals & Entertainment Deductions
The 50% rule is just the starting point. Learn when you can claim 80% or even 100% of your meals, and how to document every business meal properly.
What You Can (and Can't) Deduct
Know exactly what belongs on Line 8523 — and what the CRA says doesn't qualify.
What Qualifies
- Client meals and business dinners
- Beverages at business meetings
- Event tickets for entertaining clients (concerts, sporting events)
- Staff party meals (up to 6 events per year at 100%)
- Meals during business travel (still subject to 50% rule)
- Coffee meetings with potential clients or partners
- Catering for business events or open houses
Does NOT Qualify
- Personal meals not related to business
- Grocery shopping for personal use
- Meals eaten alone (unless traveling for business)
- Alcohol consumed without a business purpose
- Club membership fees for dining or recreation (those go on Line 8760 — and are not deductible)
Rules & Limits
Special CRA rules and percentage limits that apply to meals & entertainment.
Special Rules
50% General Deduction Rule
Heads upThe CRA limits meals and entertainment deductions to 50% of the lesser of the actual cost or a reasonable amount. This applies to the meal cost, tips, and taxes combined.
Section 67.1 of the Income Tax ActLong-Haul Truck Driver 80% Rate
AdvantageLong-haul truck drivers can deduct 80% of meal costs during eligible travel periods, defined as 24+ continuous hours away from home beyond a 160 km radius.
TL2 Claim for Meals and Lodging100% Deductibility Exceptions
AdvantageSix exceptions allow 100% meal deductions: (1) your business sells food or beverages, (2) you bill meals separately to clients, (3) meals at remote work locations, (4) staff parties (max 6 per year), (5) charity fundraising events, and (6) construction camp meals.
Convention Meal Cap
Heads upMeals consumed at conventions are capped at $50 per day, and are still subject to the 50% limitation on top of that cap.
Self-Employed Courier/Rickshaw Driver Flat Rate
AdvantageSelf-employed couriers and rickshaw drivers may claim a flat rate of $23 per day for meals instead of tracking actual receipts.
Percentage Limits
| Rule | Limit |
|---|---|
| General meals and entertainment | 50% |
| Long-haul truck driver meals | 80% |
| Convention meals | $50/day cap (then 50%) |
Real-World Examples
See how different professionals use Line 8523 deductions in practice.
Client Celebration Dinner After Closing
Took clients out for a celebration dinner after successfully closing on their new home.
$185
$92.50 (50%)
Truck Stop Meals During 3-Day Haul
Meals at truck stops during a 3-day cross-country delivery run, away from home for 72+ hours.
$127
$101.60 (80%)
Team Lunch on Job Site
Provided lunch for the crew at a remote construction site with no nearby restaurants.
$210
$210 (100% — remote/construction camp)
Common Mistakes to Avoid
These errors on Line 8523 can trigger a CRA review — here's how to get it right.
Claiming 100% of meal costs instead of 50%
The default rule is 50%. Only six specific exceptions allow 100% deduction. Always apply the 50% rule unless your situation fits one of the named exceptions.
Not keeping receipts showing who attended and business purpose
The CRA requires you to document who was present and the business purpose for every meal. Write the attendee names and reason on the back of each receipt, or use ScanForTax to add notes digitally.
Including personal meals while traveling as business expenses
Only meals with a clear business purpose during travel qualify. A solo dinner while on a business trip is deductible, but meals with family members who join you are personal.
Commonly Confused Categories
These categories are often mixed up with Meals & Entertainment. Here's the difference.
Travel Expenses
Meals during business travel go on Line 8523 (still subject to the 50% rule), while the travel itself (hotel, flights, car rental) goes on Line 9200.
Other Expenses
Some people put small meal costs under Other Expenses. All meal expenses should go on Line 8523 so the 50% limitation is properly applied.
Sample Receipt Walkthrough
See how ScanForTax processes a typical meals expense.
The Keg Steakhouse
2025-04-10
British Columbia
How ScanForTax categorizes this
ScanForTax identifies this restaurant receipt and auto-applies the 50% meals deduction rule. Your deductible amount is $62.48 (50% of $124.95). The $6.25 GST is fully recoverable via ITC — PST ($12.50) is never recoverable in BC.
Frequently Asked Questions
Why can I only deduct 50% of meals?
When can I deduct 100% of meals?
Do long-haul truck drivers get a better rate?
Related Professions
Profession-specific guides that frequently use Meals deductions.
Tax Guides by Province
See how tax recovery works for meals expenses in each province.
Related Expense Categories
Tax deadline is April 30th.
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