Canada Revenue Agency increases fixed amount for meal claims and reasonable amount for meal allowances and grants

The Canada Revenue Agency will increase from $17 to $23 the amount employers can use to determine whether an overtime meal allowance or meals provided during overtime, as well as the “meal” portion of a travel allowance, are taxable. The Agency has also increased from $17 to $23 per meal the amount that transportation employees and others can claim for meal expenses using the simplified method (a fixed amount per person). These increases, effective immediately, are retroactive to January1, 2020.

The Agency’s policies on taxable benefits and allowances allow an employer to exclude from an employee’s income the value of an overtime meal allowance or a meal provided during overtime, as well as certain travel allowances (including a meal), provided the value is reasonable (among other conditions). If all conditions are met, the employer does not have to declare the value of the meal or allowance on the employee’s T4 slip.

When claiming meal expenses on their personal income tax and benefit returns, transportation employees and individuals claiming the moving expense or medical expense deduction, or the northern residents deduction, can calculate the meal expense reimbursement amount using the simplified method. This method is the simplest way to calculate meal expenses, since it is based on a fixed amount and individuals do not need to keep receipts for their meals.

The amount in these policies was last updated in 2009, when it was set at $17. These increases provide greater flexibility and now fairly represent the average cost of a meal today, ensuring that Canadian taxpayers receive the full benefit of their meal allowance, reimbursement or reimbursement.

Further information on the increased amounts and their impact on employers and employees will be provided in the coming weeks, including in the following publications: