The overnight rule
Meal deductions during travel only apply when you're traveling away from your tax home and the trip requires you to sleep or rest. A day trip to a nearby city doesn't qualify for the travel meal deduction (though the meal might still qualify as a regular business meal if you meet with a client).
Your "tax home" is generally the city where your main place of business is located, not necessarily where you live.
Actual costs vs. per diem
Actual costs: Keep all meal receipts. Deduct 50% of what you actually spent. Simple but requires receipt management.
Per diem rate: The IRS publishes daily meal allowances for every city. Use the rate for the city you're visiting — no receipts needed for meals. You still need to document the business purpose of the trip, dates, and location.
For 2025-2026, the standard per diem for meals is $68/day for most U.S. cities, but high-cost cities (NYC, SF, DC) can be $79/day or more. Check the GSA per diem rates for your specific destination.
You travel from Arroyo Grande to San Francisco for a 3-day business conference.
Actual method: You spent $180 on meals over 3 days. Deduction: 50% × $180 = $90
Per diem method: SF per diem for meals is $79/day × 3 days = $237. Deduction: 50% × $237 = $118.50
Per diem wins here — and you didn't need to save a single receipt.
What else is deductible during business travel?
Beyond meals (at 50%), these travel expenses are 100% deductible:
- Airfare, train, or bus tickets
- Hotel/lodging
- Rental car or rideshare (Uber/Lyft)
- Parking and tolls
- Baggage fees
- Tips for service workers
- Laundry/dry cleaning during extended trips
See IRS Publication 463 (Travel, Gift, and Car Expenses). Per diem rates are published by the GSA at gsa.gov/perdiem. Report on Schedule C, Lines 24a (travel) and 24b (meals).
Separate travel expenses from daily spending
Hivebooks tags travel expenses by trip so you can see the full cost of each business trip and maximize your deductions.
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