Is a Wi-Fi Router Tax Deductible?
🔄 It Depends — A Wi-Fi router is deductible based on the percentage of your internet usage that's for business.
Quick Answer: 🔄 It Depends — A Wi-Fi router is deductible based on the percentage of your internet usage that's for business.
The Short Answer
If you work from home or run a home-based business, your Wi-Fi router is partially deductible based on your business-use percentage. For a dedicated business location (office, warehouse, retail), a router used exclusively for business is 100% deductible. The router itself and the ongoing internet service are separate but related deductions.
IRS Rules for Deducting a Wi-Fi Router
Under IRS Publication 535, internet-related equipment used for business is an ordinary and necessary expense. Wi-Fi routers fall under computer equipment or office supplies depending on cost.
The critical distinction:
- Dedicated business location: 100% deductible — the router is business infrastructure.
- Home office: Deductible at your business-use percentage. If you use your home internet 60% for business, 60% of the router cost is deductible.
- No home office: If you work from home but don't claim a home office, you can still deduct the business percentage of internet costs, including the router (IRS has not required the home office deduction as a prerequisite for internet deductions).
Important: The router and the internet service are separate deductions. The router is equipment (one-time purchase). The internet plan is a recurring utility.
How Much Can You Deduct?
| Scenario | Router Cost | Deductible |
| ---------- | ----------- | ------------ |
| Business-only location | $80–$400 | 100% |
| Home office (70% business) | $200 router | $140 |
| Home office (50% business) | $200 router | $100 |
| Mesh system (home office) | $300–$600 | Business-use % |
Wi-Fi extenders, mesh nodes, and network switches used to support your business connection are deductible at the same rate.
How to Categorize in QuickBooks
- QBO Category: Computer & Internet Expenses
- Schedule C Line: Line 25 (Utilities) for internet service; Line 22 (Supplies) or Line 18 (Office expense) for the router hardware
- Tip: Separate the router purchase from your monthly internet bill in QBO. The router is a one-time equipment expense; internet is a recurring utility.
Common Mistakes to Avoid
- Claiming 100% on a home router. If your family also uses the Wi-Fi for streaming, gaming, and social media, 100% business use won't hold up. Be realistic with your allocation.
- Forgetting to deduct the router when you deduct internet. Many people deduct their monthly internet bill but forget the router itself is a separate deductible purchase.
- Not deducting router replacements. Routers need replacing every few years. Each replacement is a new deductible expense.
Record-Keeping Requirements
Keep the purchase receipt for the router with date, vendor, model, and cost. Document your business-use percentage and how you calculated it (e.g., hours of business use vs. total use, or number of business devices vs. total devices). Retain records for at least 3 years from filing.
Who Can Deduct a Wi-Fi Router?
- Sole proprietors: Schedule C
- Single-member LLCs: Same as sole proprietors
- Partnerships & multi-member LLCs: Form 1065
- S-Corps & C-Corps: Corporate expense
- Nonprofits: Operational expense
- W-2 employees: Not deductible (2018–2025)
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