Small Business Tax Deductions 2026

Maximizing deductions is the most effective way to reduce your business tax burden.

Operating Expenses

1. Rent/lease. 2. Utilities. 3. Office supplies. 4. Phone/internet. 5. Software subscriptions. 6. Professional services (legal, accounting). 7. Business insurance.

Employee Costs

8. Salaries/wages. 9. Payroll taxes. 10. Health insurance. 11. Retirement plans (401k, SIMPLE). 12. Workers comp. 13. Training/education.

Vehicle and Travel

14. Business vehicle use (standard mileage or actual). 15. Travel expenses. 16. Meals (50% or 100% for events). 17. Lodging. 18. Transportation (tolls, parking).

Equipment and Property

19. Section 179 deduction ($1.22M limit). 20. Bonus depreciation (60% in 2026). 21. Office furniture. 22. Computer/electronics. 23. Machinery.

Marketing and Advertising

24. Website costs. 25. Advertising. 26. Business cards. 27. SEO/SEM. 28. Social media marketing.

Financial

29. Bank fees. 30. Interest on business loans. 31. Credit card processing fees. 32. Bad debt expense. 33. Business taxes/licenses.

Home Office

34. Home office (simplified or actual). 35. Internet (business portion). 36. Phone (business portion).

Specialty Deductions

37. Startup costs (up to $5,000). 38. Health insurance for self-employed. 39. Qualified business income (20% QBI). 40. Charitable donations (business). 41. State/local taxes (SALT). 42. Continuing education. 43. Professional memberships. 44. Business gifts ($25 limit). 45. Disaster losses. 46. Research and development. 47. Energy efficiency credits. 48. Disabled access. 49. Fertility treatment. 50. Child/dependent care.