08/05/2026
Meal allowances in Canada are generally not taxable if they are reasonable and given for specific situations like business travel or occasional overtime.
Non-Taxable Conditions
The CRA excludes a travel meal allowance from your taxable income only if it meets these rules:
• Away from the area: You must be traveling outside the municipality or metropolitan area where your regular work office is located.
• Reasonable amount: The allowance must be a realistic, non-excessive amount for food. The CRA often benchmarks a standard "reasonable" baseline at up to $23 per meal, though higher amounts are accepted if you are traveling to high-cost regions or operating under official standardized corporate/government travel rates. [1, 2]
• Work purpose: The travel and meals are strictly required to perform your job duties, and your employer is the primary beneficiary rather than giving you extra hidden salary. [1, 2]
When it becomes taxable:
Your meal allowance will be counted as taxable income (and subject to income tax, CPP, and EI) if:
• It is a fixed monthly bonus or flat allowance paid regardless of whether you actually travel.
• You are eating meals within your regular home office municipality/metropolitan area under normal daily circumstances without qualifying special conditions.
• The amount is unreasonably high compared to actual living/meal costs in the travel destination.
Excessive amounts: Any cash allowance or cost above the reasonable $23 limit without special justification.
General cash allowances: Regular cash meal allowances given to employees not tied to specific exempt travel or overtime conditions.
A work-related meal allowance is generally not taxable in Canada if it is considered reasonable and paid while you are traveling away from your employer's main office or metropolitan area for work.
CRA considers a reasonable meal amount to be up to $23 (including taxes) per meal.
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