Can You Claim Car Repairs on Your Taxes?

Most personal vehicle maintenance and repair costs are not tax deductible, as the Internal Revenue Service (IRS) generally views these as personal living costs. However, specific situations and uses of a vehicle can allow for claiming these expenses on a tax return.

Understanding Personal Vehicle Expenses

Most routine car repairs and maintenance for personal vehicles are not tax deductible, classified by the IRS as personal living expenses. This includes common expenditures such as oil changes, tire rotations, brake replacements, and even major engine repairs on a vehicle used solely for personal transportation. Personal expenses are those incurred for your own benefit or the benefit of your family, and they generally do not reduce your taxable income. This principle applies broadly to the costs of owning and operating a personal vehicle, even if occasionally used for errands or commuting to a regular job.

Deducting Vehicle Expenses for Business Purposes

Individuals who use their vehicle for business can deduct a portion of their vehicle expenses, including repairs, as ordinary and necessary business expenses. This applies primarily to self-employed individuals, such as freelancers, independent contractors, or small business owners. The expenses must be directly related to their trade or business.

Self-employed individuals have two methods for calculating their vehicle expense deduction. The first is the standard mileage rate, which allows a set amount for each business mile driven. For 2025, this rate is 70 cents per mile. This rate covers various operating costs, including repairs, maintenance, gas, oil, insurance, and depreciation, so you cannot deduct these items separately if you choose this method.

The second method is deducting actual expenses, which requires record-keeping of all costs incurred. Under this method, you can include the actual amounts spent on repairs, maintenance, gas, oil, insurance, vehicle registration fees, and depreciation or lease payments. If the vehicle is used for both business and personal purposes, expenses must be prorated based on the percentage of business mileage versus total mileage. For example, if 60% of your vehicle’s mileage was for business, you could deduct 60% of your actual repair costs.

For employees, the ability to deduct unreimbursed vehicle expenses, including repairs, has been largely suspended under current federal tax law. The Tax Cuts and Jobs Act of 2017 eliminated miscellaneous itemized deductions subject to the 2% adjusted gross income (AGI) floor for tax years 2018 through 2025. This means most employees cannot deduct the cost of using their personal vehicle for work, even if their employer does not reimburse them.

Deducting Vehicle Expenses for Specific Non-Business Activities

Beyond business use, certain non-business activities may allow for vehicle expense deductions, including a portion of repair costs. These are generally itemized deductions, meaning they can only be claimed if you itemize deductions on Schedule A (Form 1040) and your total itemized deductions exceed your standard deduction.

Medical Travel

Vehicle expenses for transportation primarily for medical care can be included as an itemized medical expense deduction. This involves deducting actual out-of-pocket costs for gas and oil, or using a standard medical mileage rate. For 2025, the medical mileage rate is 21 cents per mile. However, you cannot include repair and maintenance costs, depreciation, or insurance when using the actual expense method for medical travel. Total medical expenses must exceed 7.5% of your adjusted gross income to be deductible.

Charitable Activities

Vehicle expenses incurred while providing services to a qualified charitable organization can be deducted. You can deduct actual out-of-pocket expenses for gas and oil directly tied to the charitable activity, or use the standard charitable mileage rate. For 2025, the charitable mileage rate is 14 cents per mile. General repairs, depreciation, or insurance are not deductible under the actual expense method for charitable mileage.

Moving Expenses

Deducting moving expenses is limited under current federal tax law, primarily applying only to active-duty military personnel moving due to a permanent change of station. If an active-duty military member qualifies, vehicle expenses, including a portion of repairs, could be considered part of the travel costs associated with the move. The standard mileage rate for moving expenses for active-duty military personnel is 21 cents per mile for 2025.

Deducting Vehicle Damage from Casualty or Theft

Repairs to a vehicle damaged from a casualty (a sudden, unexpected, or unusual event) or theft may be deductible under specific circumstances. For tax years 2018 through 2025, personal casualty and theft losses are generally only deductible if they occur in a federally declared disaster area. This means that damage from events like a common car accident or vandalism outside a declared disaster area is not deductible.

The deductible amount for a qualifying casualty or theft loss is the lesser of the decrease in the vehicle’s fair market value immediately before and after the event, or its adjusted basis (generally what you paid for it plus certain improvements). This amount must then be reduced by any insurance reimbursement received. The loss is also subject to a $100 reduction per event and a 10% Adjusted Gross Income (AGI) limitation. You must report these losses on Form 4684, Casualties and Thefts.

Record Keeping

Regardless of the type of deduction, maintaining detailed records, such as mileage logs and receipts for all expenses, is crucial for substantiating any claimed vehicle deductions. Accurate documentation ensures compliance with IRS requirements and supports your claims in case of an audit.