10 Commonly Overlooked Business Tax Deductions

April 2nd 2026

Business owners are typically aware of the most common business expenses that can be deducted on U.S. tax returns, but some of the rules changed with the One Big Beautiful Bill Act (OBBBA) in 2025. As of January 1, 2026, some of the deductions you may have previously taken are no longer allowed, while new ones were introduced, so you’ll definitely want to check in with your account to confirm you’re taking all of the deductions you are entitled to as a business owner.

Ten business expenses that currently qualify as deductions, which not everyone is aware of, include the following:

1. Retirement Contributions

Business owners can contribute to retirement accounts, including a Solo 401(k) or a SEP-IRA, for themselves and their employees and deduct those contributions as business expenses. There’s a lot of money at stake here, too, with up to $70,000 permitted in combined employee deferrals and up to 25% of net self-employment earnings for 2025 to a Solo 401(k), or up to $81,250 if you’re age 60-63, according to SDO CPA. SEP-IRAs have the same $70,000 max from up to 25% of net self-employment earnings.

 

2. Bank and Payment Processing Fees

Given how much business is currently conducted online, it’s important to deduct all the costs associated with receiving those payments. That includes your bank’s monthly service charge just for having a business account, overdraft fees, check re-orders, wire transfer fees, and any extra payments you may need to make for research or paperwork.

If you use a third-party payment processor, such as PayPal or Stripe, those fees are deductible, too.

One additional deduction change to be aware of, as of January 1, 2026, on-site food provided for employees is no longer deductible. Employers previously could supply coffee, snacks, and even subsidize a cafeteria, but that is no longer the case. “Business meals with clients and meals during travel remain 50% deductible,” however, reports Homebase.

 

3. Loan and Credit Card Interest

Few businesses today operate without credit cards to pay bills, and some take out business loans, such as for the purchase of a building or business equipment. In those instances, the interest you pay on those credit cards or loans is fully deductible. The cards and loans need to be solely for business use, however.

 

4. Business Insurance Premiums

Smart business owners purchase business insurance to protect their company’s operations, and as long as the type of insurance you’ve bought is considered ordinary and necessary, SoFi says you can generally write off 100% of your policy premium payments. Examples of business insurance include property, liability, worker’s compensation, business continuation, and data breach insurance.

 

5. Professional Advisory Fees

When you started your business, it’s likely you needed legal and accounting advice, among other things, and the good news is that fees charged by such professionals are fully deductible, according to the U.S. Chamber of Commerce. Fees paid to consultants for advice in how to address or troubleshoot a particular issue your company is having are likely also deductible.

 

6. Continuing Education and Professional Development

Training opportunities that help you maintain or improve skills you need to run your business are currently fully deductible. That means that online courses, webinars, workshops, books, workbooks, certifications, conferences, conventions, and memberships in professional associates are tax deductible. The key here is that the educational opportunities can’t help you start a new business in a different industry — what you learn needs to be applicable to your current business.

 

7. Software Subscriptions

So much of what we do today to run a business involves online activities, from responding to emails to setting up a website, updating a customer relationship management (CRM) program, and creating social media content, to name a handful of types of tasks. For that reason, purchases of online software subscriptions, apps, and digital assets are also deductible. That means the stock photos you buy for blog posts are tax deductible, as is the app you bought that tracks your business mileage, the same as your purchase of Microsoft 365 or Intuit QuickBooks. A good rule of thumb is that if you need it to run your business, it’s deductible.

 

8. Client Gifts

If you try to send your clients small meaningful gifts each holiday season, or maybe on their birthdays, you can claim it as a deduction up to $25 per gift. So, those nice little leather journals you ordered for your top customers at $24.99 each? They’re 100% deductible. However, if you overspend, anything above $25 cannot be claimed. That means you can still give more expensive gifts, but the cost above $25 is coming out of your profit margin.

 

9. Cell Phone and Internet Service

This one may not be all that overlooked, but make sure you are deducting the percentage of your cell phone bill and internet costs that you use for business. If you have a business cell phone that you use only for business purposes, it should be entirely deductible. On the other hand, if you have a personal cell phone that you use both for personal and business purposes, you can deduct the portion of the bill that you can connect with business calls. For example, if you made 100 calls in a month and 50 were for business, you can deduct 50% of the costs that month. And the same goes for your internet service. If you have internet that services your corporate office, it is likely 100% deductible, though internet service that is used by your entire family and your home-based business is likely only deductible based on what percent you use it for business. Check with your accountant to see how they recommend you calculate this expense.

 

10.Tolls and Parking Fees

In 2026, the mileage reimbursement rate for business trips is 72.5 cents per mile. However, in addition to that expense, you can also write off highway tolls you pay for business travel, as well as any parking fees you incur during meetings. Make sure you keep receipts and note the purpose of that trip in case there is ever any question.

Tax laws change frequently, so rely on the advice from your accountant when deciding which expenses are tax deductible to your business. Hopefully this list helps expand your thinking regarding what other business expenses you have that are required for you to operate, and which then may also be tax deductible.