A List of Travel Expenses You Can Deduct for Business

For self-employed individuals and businesses, travel expenses can significantly lower taxable income. These deductions are governed by specific regulations that distinguish between a personal trip and legitimate business travel. This framework allows for the recovery of costs incurred while conducting business away from your primary place of operation.

Qualifying for Business Travel Deductions

To claim deductions, a trip must be “away from home.” The IRS defines your tax home as the city or general area of your main place of business, regardless of where you live. Travel expenses are deductible only if your duties require you to be away from your tax home for a period substantially longer than an ordinary day’s work, necessitating sleep or rest.

When a trip combines business with leisure, its primary purpose determines the deductibility of transportation costs. If the trip is mainly for business, the full cost of travel to and from your destination is deductible. However, you can only deduct lodging and meals for the days you conduct business. If the trip is mainly for personal reasons, transportation costs are not deductible, though you can still deduct specific business expenses incurred at the destination.

For travel outside the U.S. that lasts longer than a week, at least 75% of your time must be devoted to business to deduct travel costs. An assignment’s duration also matters. Travel for a temporary work assignment is deductible, but costs for an assignment expected to last more than one year are not.

Comprehensive List of Deductible Expenses

Once a trip qualifies as business travel, a wide array of costs become deductible. To be deductible, an expense must be both ordinary, meaning common and accepted in your trade, and necessary, meaning helpful and appropriate for your work.

Transportation

The cost of getting to your business destination includes fares for airplanes, trains, and buses. If you use your personal vehicle, you have two options: the standard mileage rate or actual expenses. For 2025, the standard rate is 70 cents per mile; alternatively, you can track the actual costs of gas, oil, and other vehicle-related expenses. Tolls and parking fees can be deducted in addition to either method, and the cost of taxis or ride-sharing services is also deductible.

Lodging

The full cost of lodging during the business portion of your trip is deductible. This includes stays at hotels, motels, or other similar accommodations. The cost must be reasonable based on the facts and circumstances of your trip.

Meals

You can deduct the cost of your own meals while traveling for business, but this deduction is limited to 50% of the actual cost. This limitation applies whether you are dining alone or with business contacts. As an alternative to tracking every meal receipt, you can use the standard meal allowance, or per diem rate. The 50% limit still applies to the per diem amount.

Incidental Expenses

Incidental expenses are smaller costs you may incur while traveling for business. These can include tips paid for services to baggage handlers or hotel staff. The costs of laundry and dry cleaning services during your trip are also deductible.

Other Business Expenses

Other costs directly related to your business activities while on the road are deductible. This includes:

• Fees for business-related phone calls
• Computer and equipment rentals
• Wi-Fi access charges
• Shipping costs for baggage or materials, such as trade show displays

Required Documentation and Recordkeeping

To claim any business travel deduction, you must maintain records that substantiate your expenses. The IRS requires contemporaneous documentation, meaning you should record the details at the time of the expense. For each cost, you must record the amount, the date, location, and the specific business purpose.

Documentation involves keeping receipts, canceled checks, or bills. While you must document all expenses, a receipt is required for any lodging expense, regardless of the amount, and for any other single expense of $75 or more. For expenses under $75, a detailed entry in a log is sufficient if it contains all the necessary information.

Maintaining a travel log or expense report is a practical way to meet these requirements. This log should clearly separate business expenses from any personal costs incurred during the trip. Accurate and organized records are a prerequisite for defending your deductions in the event of an IRS audit.

Non-Deductible Travel Costs

Not all expenses incurred while away from home are deductible. The cost of your daily commute between your home and your main place of work is never deductible as a travel expense. Any expense that is considered lavish or extravagant is not deductible.

Costs associated with bringing a travel companion, such as a spouse or child, are generally not deductible unless that person is an employee of your business and is traveling for a business reason. You can only deduct the cost you would have incurred if traveling alone. For example, the cost of a single-occupancy hotel room is deductible, but any extra charge for a second person is not. Expenses for personal side trips or vacation days are not deductible.