Business Travel Tax Deductions: Travel, Equipment, Meals, and More

Business owners and self-employed individuals who travel for work can deduct many expenses including airfare, lodging, meals, and more. This guide reviews what’s covered as a travel expense and includes updates from the One Big Beautiful Bill Act.

As a business owner, I know firsthand how quickly travel costs can add up. Whether you’re meeting for a client lunch or taking a flight for an industry conference, these expenses are a real and necessary part of running your business. I’m always looking into tax laws for any new credit and deductions that I’m able to claim.

In this guide, I summarize the most important travel deductions related to your business for the 2025 and 2026 tax years, including major updates from the One Big Beautiful Bill Act signed in 2025.

What qualifies as business travel?

Employees generally cannot deduct unreimbursed travel expenses, but self-employed individuals can. Not every work-related trip is considered deductible business travel by the IRS. To qualify, the trip must meet these criteria:

• It takes you away from your main place of business (your “tax home”).
• It requires you to be away longer than an ordinary workday (expenses for local business trips may still be deductible as a separate business expense).
• You need sleep or rest to meet the demands of your work while away.
• The primary purpose of the trip is business.

Deductible business travel expenses

When you travel away from home overnight for business, the following costs are generally deductible:

• Training and licensing expenses for your current field.
• Airfare, train, bus, or car travel expenses to and from your business destination.
• Expenses for the business use of your car.
• Rental cars or taxis, including ride shares like Uber.
• Lodging at a hotel or other accommodations.
• Meals you pay for when meeting with clients for business purposes. Under IRS guidelines, you can deduct 50% of the cost of business-related meals.
• Business calls, Wi-Fi Internet and cell phone expenses while traveling.
• Tips for services connected to any of the above.

You may be looking for entertainment expenses in the list; however, entertainment expenses like treating your client to a sporting event were eliminated under The Tax Cuts and Jobs Act. Meals during entertainment events may still be 50% deductible if they are separately itemized on the invoice.

Equipment deduction amounts

Business travel often requires equipment, like laptops, cameras, smartphones, and more. If you buy equipment in the course of doing business, the One Big Beautiful Bill Act allows you to write off the full cost in the first year.

The maximum deduction is: 

• 2025: $2,500,000
• 2026: $2,560,000

This applies to business equipment like computers, printers, and office furniture. The amount you can deduct is limited to the amount of income from business activity.

Standard mileage rates

If you use your vehicle for travel, you can deduct your vehicle costs in one of two ways:

1. Standard mileage rate: The IRS standard mileage rate for 2025 is $0.70 per mile ($0.725 per mile for 2026). Simply track your miles and multiply. There’s no need to track individual expenses.
2. Actual expenses: Deduct the real costs of operating your vehicle (gas, insurance, repairs, registration, and depreciation) proportional to your business use. (See the following section.)

Depreciation schedules for automobiles

You can deduct vehicle expenses based on the percentage of miles driven for business. However, if business use exceeds 50%, you qualify for additional tax benefits, including a special depreciation allowance that lets you deduct a larger portion of the vehicle’s cost sooner. If the business use drops to 50% or below in a later year, previously claimed accelerated depreciation may be subject to recapture.  

2025: The maximum you can deduct with depreciation is $20,200 with bonus depreciation (or $12,200 without)

2026: The maximum you can deduct with depreciation is $20,300 with bonus depreciation (or $12,300 without)  

For heavy SUVs, trucks, and vans the Section 179 deduction is capped at $31,300, but may qualify for 100% bonus depreciation with no separate dollar limit.  

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