Meal Voucher Tax Savings Calculator
Short answer
Last checked · 2 key figures from the fact register
Key facts
| Fact | Value | Source | Date checked |
|---|---|---|---|
| Tax-free meal value | ₹200 per meal (earlier ₹50) from tax year 2026-27 Reported by reputable sources | KPMG flash alert 2026-081 (opens in a new tab) | |
| Meal exemption in the new regime | Contested; widely read as available in both regimes Contested | Taxmann: meal voucher tax benefit under new regime (opens in a new tab) |
The tax-free value of employer-provided meals rose to ₹200 per meal from 1 April 2026, from ₹50. Enter the voucher value, how many meals a day and how many working days, and see the tax-free total and the tax saved. Check with payroll whether it applies in the new regime.
Estimated tax saved per year
₹32,947
- Tax-free vouchers per year
- ₹1,05,600
- Taxable because above the limit
- ₹0
How it is calculated
- Tax-free value per meal = the lower of the voucher value and the limit
- Tax-free per year = that value × meals per day × working days × 12
- Tax saved = tax-free value × slab rate × 1.04 (4% cess)
- Whether the benefit works in the new tax regime is debated. Check with your payroll team first.
Estimates for information only; not financial, tax or legal advice.
Worked example
Example (the default inputs): ₹200 a meal, 2 meals a day, 22 days a month. Tax-free vouchers are ₹1,05,600 a year. In the 30% slab with 4% cess, the saving is about ₹32,947. At a ₹250 voucher, the extra ₹50 a meal would be taxable.
Frequently asked questions
Does it work in the new tax regime?
This is debated. Some advisers say yes because it is a valuation rule. Others say it is limited to the old regime. Ask your payroll team.
Are meal vouchers cash?
No. They can be used only for food and non-alcoholic drinks. Take them only if you would spend that on food anyway.
Is the ₹200 limit final?
It comes from the Income-tax Rules, 2026 per secondary sources. Confirm it in the Rules.
Related perks
- Employer NPS Contribution Tax Benefit (Section 124, formerly 80CCD(2))
- HRA (House Rent Allowance) Tax Exemption
- Salary Account Credit Card and Lounge Perks
Sources and status
Each figure on this page comes from the fact register. What the badges mean.
- Reported by reputable sourceschecked 2026-10-16
Free food or non-transferable meal vouchers: 200 per meal (earlier 50), from tax year 2026-27, final Rules
- Contestedchecked 2026-10-16
Whether the meal exemption applies in the new regime is contested. The old Rule 3(7)(iii) had a proviso excluding the new regime; commentators (Taxmann, ClearTax) read the new rule as having no such proviso. Widely interpreted as available in both regimes; confirm with your employer's payroll
Government employee? Find your salary by pay level and see 8th Pay Commission scenarios.
Estimates for information only; not financial, tax or legal advice. Disclaimer.