--- title: "Business Travel Expenses: What the CRA Lets You Deduct" url: https://www.everstonecpa.com/blog/travel-expenses-business-canada-cra description: "Business travel expenses the CRA accepts: airfare, hotels, the 50% meals limit, the two-convention rule and how a part-holiday trip is split. See the list." type: guide updated: 2026-10-06 summary: "Travel expenses incurred to earn business income are deductible, including public transportation fares, hotel accommodation and meals. Meals, beverages and entertainment while travelling are generally limited to 50%. Conventions have their own restrictions, and any personal portion of a trip has to be excluded." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) Business Travel Expenses in Canada: What the CRA Accepts Tax # Business travel expenses: *what the CRA accepts* By EverStone CPA · Updated September 2026 · 8 min read **Quick answer:** Travel expenses incurred to earn business income are deductible, including public transportation fares, hotel accommodation and meals. Meals, beverages and entertainment while travelling are generally limited to 50%. Conventions have their own restrictions, and any personal portion of a trip has to be excluded. **Travel claims that survive a CRA review?** We book travel at the right rates, split business from personal days and keep the receipts the CRA asks for, with bookkeeping from $325 a month. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) What share of each travel cost is actually deductible. **Rather have a CPA handle this?** A CPA at EverStone replies with a straight answer and a fixed fee for your situation. [Get My Fixed Quote →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) ## Key takeaways - Travel expenses incurred to earn business and professional income are deductible. - In most cases the 50% limit applies to meals, beverages and entertainment while travelling. - The cost of attending up to two conventions a year can be deducted, subject to conditions. - Where a convention fee includes unitemized food or entertainment, $50 a day is treated as a meal expense. - On a mixed business and personal trip, only the business portion is deductible. Travel is a category the CRA scrutinizes on small business reviews, because trips are often part personal and documentation is thin. The rules are simple; applying them honestly to a real trip is the work. ## Are business travel expenses tax-deductible? The CRA’s basic rule The CRA lets you deduct [travel expenses](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/line-9200-travel.html) incurred to earn income: fares, hotels, meals, taxis, parking and baggage fees on a business trip. In short, the CRA travel expenses business owners can deduct are those incurred to earn income, with meals generally limited to 50% and any personal portion excluded. Vehicle costs fall under the motor vehicle rules, using a [logbook and a business-use percentage](https://www.everstonecpa.com/blog/vehicle-mileage-deductions-canada-business). For a corporate car’s personal use, see [the company car taxable benefit](https://www.everstonecpa.com/blog/company-car-taxable-benefit-canada). **Travel a regular part of your business?** We keep every trip documented, split mixed trips correctly and apply the 50% meals limit as the books are kept, from $325 a month, with the year-end T2 quoted in writing. See [our bookkeeping](https://www.everstonecpa.com/accounting-services), or [get a bookkeeping and year-end quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) ## Meals are limited What is deductible on business travel What business travel costs are limited to, as set out on this page. | Cost | Deductible | Condition | | Travel genuinely incurred to earn income | Full | The basic rule | | Meals, beverages and entertainment while travelling | 50% | Of the lesser of what was spent and a reasonable amount | | The $50 daily incidental | 50% | Claimed as a meal and entertainment expense, so the limit applies to it too | | Conventions | Capped at two a year | With their own conditions | In most cases the 50% limit applies to meals, beverages and entertainment while travelling, including on a plane, train or bus where the ticket does not include them. The claim is capped at 50% of the lesser of the actual cost and a reasonable amount. Exceptions cover businesses that provide food or entertainment for pay, costs billed to a client on the invoice, and some employee events; see our guide to the [50% rule](https://www.everstonecpa.com/blog/meals-entertainment-deduction-50-percent-rule-canada). ## Conventions have their own rules Conferences are a common reason to travel, and the CRA’s [convention expenses](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/convention-expenses.html) rules are more restrictive than general travel: - You can deduct the cost of attending **up to two conventions a year**. - The convention has to relate to your business or professional activity. - It has to be held by a business or professional organization within the geographical area where that organization normally conducts its business. The CRA notes this second limit may not apply where an organization from another country sponsors the convention and it relates to your business. - Where the fee includes food, beverages or entertainment that the organiser does not show separately, you subtract **$50 for each day** the organiser provides them. That daily $50 is claimed as a meal and entertainment expense and is itself subject to the 50% limit. Incidentals such as coffee and doughnuts at convention meetings or receptions are not treated as food or entertainment. **Two a year is a hard cap.** A third conference in the same year is not deductible as a convention expense, no matter how relevant it is. That makes the choice of which events to attend a planning decision worth making early in the year. ## Mixed business and personal trips This is where most claims go wrong. A trip mixing business and holiday is only partly deductible: the business portion counts, the personal portion does not, nor do a spouse’s or family member’s costs without a genuine business role. Show from the documents why the trip happened: an agenda, meeting confirmations, a client location, an invoice. For a split trip, a business-versus-personal day count is a defensible start if the itinerary supports it. A holiday with one meeting attached is not a business trip. ## What to keep Card statements are not enough. For each trip keep the itinerary and tickets, hotel folio, itemized meal receipts and any conference agenda, plus a short note of purpose and attendees, which is nearly impossible to reconstruct later. Keep them with your other [records](https://www.everstonecpa.com/blog/cra-record-retention-how-long-to-keep-records) for the full period. For small business travel expenses, that set of records for each trip is what lets a claim hold up when the CRA reviews it. ## The bottom line Business travel is deductible when incurred to earn income; meals are generally limited to 50%; conventions are capped at two a year; mixed trips must be split honestly. If you travel often or plan a mixed trip, confirm the claim with a CPA before booking. Whether this applies to you depends on your year-end and structure; [ask about your own situation](https://www.everstonecpa.com/quick-question) and a CPA replies, usually the same business day, free. Travel is one category among many with its own limit; [what a corporation can and cannot deduct](https://www.everstonecpa.com/corporate-tax-hub) sets out the others. Sources - [Canada Revenue Agency — Line 9200, Travel expenses](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/line-9200-travel.html) - [Canada Revenue Agency — Convention expenses](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/convention-expenses.html) - [Canada Revenue Agency — Line 8523, Meals and entertainment](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/line-8523-meals-entertainment-allowable-part-only.html) General information for Canadian business owners, current as of July 2026; not tax, legal or accounting advice, and no client relationship. Rules change, so [speak with a CPA](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) before acting. About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) Travel claims survive review when each trip’s purpose is recorded at the time; that is built into [monthly bookkeeping](https://www.everstonecpa.com/monthly-bookkeeping-services). ### Keep reading [The 50% meals and entertainment rule →](https://www.everstonecpa.com/blog/meals-entertainment-deduction-50-percent-rule-canada) [Vehicle mileage deductions →](https://www.everstonecpa.com/blog/vehicle-mileage-deductions-canada-business) [How long to keep your records →](https://www.everstonecpa.com/blog/cra-record-retention-how-long-to-keep-records) FAQ ## Frequently asked questions **What travel expenses can a business deduct?** You can deduct travel expenses incurred to earn business and professional income, such as fares, hotels and meals. Vehicle costs are claimed under the motor vehicle rules instead. **Are meals on a business trip fully deductible?** No. In most cases the 50% limit applies to meals, beverages and entertainment while travelling: 50% of the lesser of the cost and a reasonable amount, with defined exceptions. **How many conventions can I deduct in a year?** You can deduct up to two conventions a year, if they relate to your business and are held by a business or professional organization within its normal geographic area. **What happens if the convention fee includes meals?** Where the organiser provides food, drink or entertainment without showing it separately, subtract $50 per day. That $50 is claimed as meals and entertainment, subject to the 50% limit. **Can I deduct a trip that mixes business and a holiday?** Only the business portion. Personal days and costs are not deductible, nor are a spouse’s or family member’s costs without a genuine business role. Documents must show why the trip happened. **What records should I keep for business travel?** The itinerary and tickets, hotel folio, itemized meal receipts and any conference agenda, plus a note of purpose and attendees. Card statements alone rarely hold up. **Can I write off travel expenses for work?** Yes, if the travel earns business or professional income. Fares, hotels and meals qualify, meals generally at 50%, and only the business part of a mixed trip. Keep receipts and a purpose note. Employees claiming work travel follow different rules. ## Want your travel claims to hold up? Tell us roughly how often you travel and whether you are incorporated. A CPA replies by email within one business day with how we would document it and a fixed fee for the books and the return. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies by email within one business day. For a proper look, a 45-minute **Advice Call** with a CPA is $225 plus GST, booked by email, credited against your first invoice if you become a client within 60 days. Want an accountant to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. H. · Google review **Run your own numbers with the free calculators:** [Incorporation savings calculator](https://www.everstonecpa.com/incorporation-calculator) · [check a paycheque’s deductions](https://www.everstonecpa.com/payroll-deduction-calculator) · [check your GST/HST math](https://www.everstonecpa.com/gst-hst-calculator) [← TOSI: the rules on paying dividends to family members](https://www.everstonecpa.com/blog/tosi-tax-on-split-income-canada) [Truck driver meal claims: the simplified method, the 80% rate and the logbook →](https://www.everstonecpa.com/blog/trucking-per-diem-meal-claims-canada) --- Source: https://www.everstonecpa.com/blog/travel-expenses-business-canada-cra Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online