Can I Write Off Oil Changes on Taxes?

Many people wonder if routine vehicle maintenance, like oil changes, can be deducted on their taxes. Vehicle expenses can sometimes be a source of tax savings, but the rules depend significantly on how the vehicle is used. This article clarifies the specific circumstances under which oil changes and other car-related costs may or may not be written off for tax purposes.

When Oil Changes Are Deductible

Oil changes are tax-deductible when the vehicle is used for business purposes. Self-employed individuals, such as freelancers, independent contractors, or small business owners, can deduct oil changes as part of their business vehicle expenses. This falls under the Internal Revenue Service (IRS) criteria of “ordinary and necessary” business expenses. For example, a vehicle used for client visits, making deliveries, or transporting supplies directly contributes to income-generating activities. If a vehicle is used for both business and personal purposes, only the percentage of expenses related to business use is deductible.

For employees, the rules are different. Most employees cannot deduct unreimbursed employee business expenses, including vehicle maintenance, due to changes in tax law. The Tax Cuts and Jobs Act (TCJA) suspended miscellaneous itemized deductions subject to the 2% adjusted gross income (AGI) limit from 2018 through 2025. Vehicle use for managing investment or rental properties can also allow for deductions, aligning with the “ordinary and necessary” principle for expenses related to income production.

When Oil Changes Are Not Deductible

Oil changes for personal vehicles used for non-business-related activities are not deductible, as they are considered non-deductible personal expenses by the IRS. The cost of commuting to and from a regular place of business is specifically categorized as a non-deductible personal expense. This holds true even if the vehicle is later used for business tasks during the workday.

A common misconception is that any vehicle expense that helps you get to work is deductible. However, the IRS clearly distinguishes between personal commuting and actual business travel. For instance, driving from your home to your primary office is a personal commute, and its associated costs, like an oil change, are not tax-deductible. Vehicle expenses only become deductible when the travel is for business-specific purposes beyond regular commuting.

How to Claim Vehicle-Related Deductions

Claiming vehicle-related deductions, including oil changes, requires meticulous record-keeping. It is necessary to maintain a detailed log of all business mileage, noting the date, destination, purpose of the trip, and odometer readings. Additionally, keeping all receipts for actual expenses such as fuel, repairs, insurance, registration, and oil changes is crucial. These records are essential to substantiate your deductions in the event of an IRS audit.

Taxpayers can choose between two primary methods for deducting vehicle expenses: the standard mileage rate or the actual expenses method. The standard mileage rate is a per-mile rate set annually by the IRS, which is 70 cents per mile for business use in 2025. This rate simplifies calculations as it covers most operating costs, including fuel, maintenance, insurance, and depreciation, meaning you cannot deduct actual expenses like oil changes separately if you choose this method.

Alternatively, the actual expenses method involves tracking and deducting all real costs associated with operating the vehicle for business. This includes oil changes, fuel, repairs, insurance, registration fees, and depreciation or lease payments. While this method demands more detailed record-keeping, it may result in a larger deduction if your vehicle has high operating costs. Self-employed individuals typically report these deductions on Schedule C (Form 1040), Profit or Loss From Business.

To switch to the actual expense method in later years, you must use the standard mileage rate in the first year a vehicle is placed in service for business. However, if you start with the actual expense method for an owned vehicle, you cannot switch to the standard mileage rate for that vehicle in the future.