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.
Know exactly what belongs on Line 8523 — and what the CRA says doesn't qualify.
Special CRA rules and percentage limits that apply to meals & entertainment.
The 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 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 LodgingSix 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.
Meals consumed at conventions are capped at $50 per day, and are still subject to the 50% limitation on top of that cap.
Self-employed couriers and rickshaw drivers may claim a flat rate of $23 per day for meals instead of tracking actual receipts.
| Rule | Limit |
|---|---|
| General meals and entertainment | 50% |
| Long-haul truck driver meals | 80% |
| Convention meals | $50/day cap (then 50%) |
See how different professionals use Line 8523 deductions in practice.
Took clients out for a celebration dinner after successfully closing on their new home.
$185
$92.50 (50%)
Meals at truck stops during a 3-day cross-country delivery run, away from home for 72+ hours.
$127
$101.60 (80%)
Provided lunch for the crew at a remote construction site with no nearby restaurants.
$210
$210 (100% — remote/construction camp)
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.
These categories are often mixed up with Meals & Entertainment. Here's the difference.
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.
Some people put small meal costs under Other Expenses. All meal expenses should go on Line 8523 so the 50% limitation is properly applied.
See how ScanForTax processes a typical meals expense.
The Keg Steakhouse
2025-04-10
British Columbia
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.
Profession-specific guides that frequently use Meals deductions.
See how tax recovery works for meals expenses in each province.
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