Meals and Lodging From Your Employer: Basic Rules
Published November 6, 2026
Sometimes an employer gives an employee a meal or a place to stay. Publication 525 (2025), Taxable and Nontaxable Income, explains when that value is not included in your income. This guide is general information. It is not advice about your return.
The general rule
The publication says you do not include in your income the value of meals and lodging your employer provides to you and your family at no charge. The rules depend on the type of benefit. Each one has its own tests. You must meet all of the tests for the benefit you received.
The meal test
For meals, the publication names two conditions. The meals must be:
- Furnished on the business premises of your employer, and
- Furnished for the convenience of your employer.
The publication also says you do not include the value of meals, or meal money, that is a minimal fringe benefit. The publication refers to its section on de minimis benefits for those rules.
The lodging test
For lodging, the publication names three conditions. The lodging must be:
- Furnished on the business premises of your employer,
- Furnished for the convenience of your employer, and
- A condition of your employment. This means you must accept it in order to properly perform your duties.
The publication says the value of meals and lodging provided to you and your family is not included when the tests are met.
Faculty lodging at schools and health centers
The publication covers employees of educational institutions and academic health centers. If you get lodging that does not meet the three tests above, you may still not have to include its value. This is possible when the lodging is qualified campus lodging, and you pay adequate rent.
The publication says the lodging must be provided by, or on behalf of, the institution or center for use as a home. It must be on or near a campus of the educational institution or academic health center. Rent is adequate if it is at least the lesser of two amounts. The first is 5% of the appraised value of the lodging. The second is the average rent paid by people who are not employees or students for comparable lodging. If your rent is less, you include the difference in your income.
The publication's example
The publication gives this example. A sociology professor rents a home from a state university. The home is in the university's campus lodging. The house is appraised at $200,000. The average rent for comparable lodging, paid by people who are not employees or students, is $14,000 a year. The professor pays $11,000 a year.
The professor does not include any rental value in income. The rent paid is at least 5% of the appraised value, which is $10,000. If the professor paid only $8,000, the difference of $2,000 would be included in income.
Moving expenses
The publication also notes that reimbursements for certain moving expenses are no longer excluded from the gross income of nonmilitary taxpayers. This guide does not cover moving expenses. For military moves, see military moving expenses and Form 3903.
Simple steps
- Write down the meals or lodging your employer gives you, and the value of each.
- Check whether the meals are provided on the business premises, and for the employer's convenience.
- For lodging, check all three conditions, including whether you must accept it to do your job.
- If you work at a school or health center, check the campus lodging rent rule.
- Keep the rent records, appraisal, and any employer statement with your tax records.
Other employer benefits have their own rules. For example, see employer tuition assistance and your taxes or transit and parking benefits from your employer.
Upload your documents and answer a few simple questions to start your return.
Sources: Sources: IRS, Publication 525 (2025), Taxable and Nontaxable Income (https://www.irs.gov/pub/irs-pdf/p525.pdf) This is general information, not advice about your specific return.
