Is Postage Tax Deductible?

Quick Answer: ✅ Yes — postage and mailing costs for business correspondence are 100% deductible.

The Short Answer

Every stamp, metered mail charge, and certified letter fee you pay for business purposes is fully deductible. Whether you're mailing invoices, sending marketing materials, shipping contracts, or filing government forms, postage is an ordinary and necessary business expense. It's simple, easy to track, and often overlooked by small business owners who think the amounts are too small to bother with.

IRS Rules for Deducting Postage

Postage is deductible under IRC Section 162 as an ordinary and necessary business expense:

1. Must be for business purposes — Mailing invoices, client correspondence, marketing materials, tax filings, legal documents, or any other business-related mail.
2. Fully deductible in the year purchased — Stamps, meter refills, and individual mailing fees are expensed when paid.
3. Includes all mailing services — First class, priority, certified, registered, return receipt, PO box rental, and metered mail.

Source: IRS Publication 535 — Business Expenses

What Counts as Deductible Postage

✅ Fully Deductible:

• Stamps (books, rolls, or individual)
• Postage meter charges and refills
• Certified and registered mail fees
• Return receipt and delivery confirmation
• PO box rental fees
• Bulk mail / presorted mail fees
• Priority and express mail for business
• International postage for business correspondence
• Postcard mailing for marketing

❌ Not Deductible:

• Personal mail (holiday cards to family, personal bills)
• Shipping products to customers (deductible, but categorize as "shipping" not "postage" — different line on Schedule C)

How Much Can You Deduct?

Example — Small service business:

You mail about 20 letters per month at $0.73 each (2026 first-class rate) plus occasional certified mail.

• Regular postage: 240 × $0.73 = $175
• Certified mail: 12 × $4.85 = $58
• PO box: $240/year
• Total deductible: $473/year
• Tax savings (est. 25% bracket): ~$118

Example — Business with heavy mailings:

You send monthly statements to 200 clients plus marketing mailers quarterly.

• Monthly statements: 2,400 × $0.73 = $1,752
• Quarterly mailers: 800 pieces × $0.55 (presorted) = $440
• Total deductible: $2,192/year
• Tax savings (est. 25% bracket): ~$548

How to Categorize in QuickBooks

• QBO Category: "Postage and Delivery" (under Expenses)
• Schedule C Line: Line 27a — Other Expenses (list as "Postage")
• Tip: Keep postage separate from shipping/freight. Postage is for letters and documents. Shipping is for products and packages. Your CPA will thank you.

- "Postage — Regular Mail"

- "Postage — Certified/Express"

- "PO Box Rental"

Common Mistakes to Avoid

1. Lumping postage with shipping — They're related but different. Postage for letters goes to Line 27a. Shipping products to customers may be part of COGS or a separate shipping expense. Keep them in separate accounts.
2. Forgetting PO box fees — Your annual PO box rental is a deductible business expense. Many people forget to log it because it's paid once a year.
3. Not tracking small purchases — Buying a book of stamps at the post office for $14.60 feels insignificant, but 12 purchases like that over the year is $175. It adds up.
4. Mixing personal and business stamps — If you buy stamps for both personal and business use, only the business portion is deductible. Buy separately or track carefully.

Record-Keeping Requirements

• Receipts from USPS, postage meter statements, or online postage provider records
• Postage meter usage reports (if using Pitney Bowes, Stamps.com, etc.)
• PO box rental receipt
• Bank/credit card statements showing postage purchases
• Brief description of business purpose for large or unusual mailings

Who Can Deduct Postage?

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