How to Deduct Business Travel

Before traveling for business, it’s important to know what’s tax deductible. Through 2025, employees aren’t permitted to deduct unreimbursed business expenses, including travel expenses, but self-employed people may deduct business travel expenses on Schedule C. Businesses may deduct employees’ travel expenses if they provide advances or reimbursements to employees or pay the expenses directly.

For expenses to qualify for the deduction, travel must take someone away from his or her main place of work for business reasons, and the demands of the work must be such that the person must sleep away from home. In addition, the expense must be ordinary and necessary, not lavish or for personal purposes.

Deductible expenses include travel by plane, train, bus or car, as well as fares for work-related taxi rides or rideshares while away. Also deductible are lodging, 50% of meal expenses, business communication costs and tips paid for business-related services. Keep good records to support deductions, including the business purpose for each expense.