Travel Expense
Reasonable business travel costs can be deductible. Personal travel is excluded, meals generally have a 50% limit, and qualifying conventions have separate conditions.
Federal · Updated September 23, 2026
Definition
Reasonable transportation, lodging and incidental costs incurred to earn business income can be deductible. Allocate mixed business and personal trips on a supportable basis. Meals and conventions have additional limits. CRA travel guidance
Key rules
Business flights, ground transportation and accommodation generally qualify to the extent they serve the business. Personal vacation days and a companion's personal costs do not. A family member's costs require a genuine business role and business purpose; family connection alone does not establish one.
Business travel meals generally remain subject to the 50% rule. Reasonable employee allowances also require an analysis of both the employer's deduction and the employee's benefit treatment. Record expense amounts after any recoverable GST/HST.
The special convention deduction under section 20(10) covers up to two qualifying conventions a year connected with the business, held by a business or professional organization within its territorial scope. A third event does not qualify under that provision; whether any separate expense qualifies under the ordinary business rules depends on its facts. Do not assume a foreign venue automatically qualifies or is automatically excluded.
If a qualifying fee includes food, beverages or entertainment without a separate price, allocate $50 for each day those items are provided, apart from incidental refreshments. CRA convention rules
Example
A corporation sends its CTO to its second qualifying convention of 2026. The three-day event includes one unpriced gala dinner on one day and no other non-incidental meals. Assume all costs below are business-related, reasonable and net of recoverable taxes.
Flights and ground transport: $820 + $180 $1,000 Hotel $960 Registration: $1,500 less one $50 meal $1,450 Deemed dinner deduction: $50 × 50% $25 Other meal receipts: $340 × 50% $170 Total deduction $3,605 Total expense before the meal restriction $3,800
Keep the agenda, registration invoice, itinerary and meeting records. These support the business purpose; they cannot turn personal travel into a deduction. Allocate extra nights, companion costs and vacation activities separately.
Related concepts
Sources
- Income Tax Act s.18(1)(a)
- Income Tax Act s.20(10)
- Income Tax Act s.67.1
See also
Keep the books behind these numbers current.
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