Canadian Workers Get Boost in Tax-Free Meal Allowances

Canadian employers will be able to exclude a greater share of a worker’s overtime meal or allowance from the employee’s taxable income.

The changes announced Thursday by the Canada Revenue Agency increase the excludable amount for overtime meals or the meal portion of a travel allowance to C$23 from C$17. The CRA also increased the rate for transport employees and others to claim meal expenses to C$23 from C$17 per meal.

• The increases, effective immediately, are retroactive to Jan. 1.
• Employers can exclude the value of an overtime meal or allowance from an employee’s income if ...