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What Business Expenses Are Tax Deductible?

Greg Swanson

Knowing what business expenses are tax deductible helps small business owners keep more of their income and avoid paying too much in taxes. It also ensures you're staying compliant with IRS rules.

Quick answer: Tax-deductible business expenses include rent, office supplies, travel, software, marketing, and part of your home office or vehicle use.

Common Deductible Expenses

Some of the most common tax write offs for small business include advertising, business insurance, web hosting, accounting fees, and utilities. These must be ordinary and necessary for your business.

Home Office and Utilities

If you work from home, you may deduct a portion of your rent or mortgage, internet, and electricity based on your office's square footage.

Business Vehicle Use

Track mileage or actual vehicle expenses used for business. Commuting doesn’t count, but driving to meet clients or deliver goods does.

Software and Subscriptions

Monthly or annual fees for tools like Canva, QuickBooks, or Zoom can be deductible business expenses if used for work.

Meals and Travel

Meals are 50% deductible if business-related. Travel like flights and hotels count if it’s for work purposes—not vacations or personal errands.

Final Thoughts

Keep organized records and receipts throughout the year. Knowing your eligible deductions makes tax season easier and your business more profitable.

Updated: August 16, 2025

What qualifies as a tax-deductible business expense?

Any ordinary and necessary expense used for business—like rent, tools, and services—may qualify as a deductible expense.

Can I write off my internet and phone bills?

Yes, you can deduct the business-use portion of your internet and phone bills. Keep good records of your usage.

Is my home office a tax deduction?

Yes, if your home office is used exclusively for business, you may deduct a portion of your rent or mortgage and utilities.

Do I need receipts for all my deductions?

Yes, it's best to keep receipts and records for every deductible expense in case you’re audited by the IRS.