Are Tolls Tax Deductible?

Quick Answer: ✅ Yes — tolls paid during business driving are deductible, and they're deductible ON TOP of the standard mileage rate. Tolls for your daily commute are not deductible.

The Short Answer

Every toll you pay while driving for business — toll roads, bridges, tunnels, express lanes — is a deductible business expense. The best part: even if you use the standard mileage rate (70¢/mile in 2026), tolls are an additional deduction. They're not baked into the mileage rate. If you live in an area with frequent tolls, this adds up fast.

IRS Rules for Deducting Tolls

Tolls follow the same rules as other business transportation costs:

1. Business driving only — The toll must be incurred during a business trip: driving to a client, a job site, the airport for business travel, a supply run, etc.
2. Commuting tolls excluded — Tolls on your daily commute from home to your regular workplace are personal and not deductible.
3. Stackable with mileage rate — Tolls (like parking) are deductible IN ADDITION to the standard mileage rate. This is explicitly stated in IRS Publication 463.
4. Home office exception — If your home is your principal place of business, all business-purpose driving starts from home. Any tolls on those drives are deductible.

Source: IRS Publication 463 — Travel, Gift, and Car Expenses

What's Deductible

✅ Deductible tolls:

• Toll roads to client meetings
• Bridge and tunnel tolls for business driving
• Turnpike tolls on business trips
• Express/HOT lane fees during business driving
• Tolls during business travel in other cities/states

❌ Not deductible:

• Tolls on your daily commute
• Tolls during personal errands or trips
• Toll penalties or fines for unpaid tolls

How Much Can You Deduct?

Example — Salesperson in the Northeast:

You cross a $6 bridge toll 3 times per week for client meetings.

• Weekly: 3 × $6 = $18
• Annual deduction: $18 × 50 weeks = $900

Plus this is ON TOP of your mileage deduction.

Example — Occasional business traveler:

Example — Stacked with mileage + parking:

• Mileage: 10,000 miles × $0.70 = $7,000
• Tolls: $900
• Parking: $500
• Total vehicle deduction: $8,400

How to Categorize in QuickBooks

• QBO Category: "Parking & Tolls" (sub-account under Car and Truck Expenses)
• Schedule C Line: Line 9 — Car and Truck Expenses
• Tip: If you use E-ZPass, SunPass, or another electronic toll system, download your annual statement. It shows every toll with date, location, and amount — perfect for documentation.

Common Mistakes to Avoid

1. Assuming tolls are included in the mileage rate — They're not. This is one of the most common mistakes. Tolls and parking are deductible on top of the standard mileage rate.
2. Not tracking electronic tolls — E-ZPass and similar systems charge automatically, making tolls easy to forget. Download your annual statement and flag business trips.
3. Deducting commute tolls — If you pay a $5 toll every day driving to the office, that's commuting — not deductible. But if your home is your office, the same toll to a client is deductible.
4. Missing tolls on business trips — When traveling to another city, tolls on unfamiliar roads are easy to overlook in your expense tracking.

Record-Keeping Requirements

• Toll receipts or E-ZPass/SunPass/FasTrak statements
• Date and route for each toll
• Business purpose of the trip
• If using electronic tolling: annual account statement showing all charges
• Separate business tolls from personal/commuting tolls in your records

Who Can Deduct Tolls?

---

Missing deductions because your books are behind? Accounting Ketchup catches up your QuickBooks in 3–7 days — starting at $69/month. Get your price →