Are Tolls Tax Deductible? What You Need to Know

When Are Tolls Tax Deductible?

General Rule: tolls are tax-deductible only if they are directly related to business or work-related travel. You cannot write off tolls for personal trips or daily commuting to and from a regular work location. However, if you travel for business purposes, you may be eligible to claim toll fees on your taxes.

Who Can Deduct Toll Fees on Taxes?

Self-Employed Individuals & Business Owners

If you’re self-employed or own a business, you can deduct road toll fees as a business expense if:

• The tolls were incurred while driving for business purposes (e.g., meeting clients, making deliveries, attending work-related events).
• You keep proper documentation, such as highway toll receipts or a mileage log.

Employees (W-2 Workers)

Generally, employees cannot deduct toll fees from their taxes if they are W-2 workers. However, toll charges may be deductible if they are unreimbursed and part of a qualifying deduction (e.g., military reservists, performing artists, or fee-based government officials). If your employer reimburses you for tolls, you cannot claim them on your tax return.

Gig Workers & 1099 Independent Contractors

If you drive for Gig platforms like DoorDash or Instacart, or any other job as an independent contractor, tolls are tax-deductible as long as they are paid during business-related travel. However, if you are compensated for tolls (such as during passenger trips with Uber), you cannot include them in your mileage deduction.

How to Deduct Toll Fees on Your Taxes

Using the Actual Expense Method

If you deduct actual vehicle expenses, tolls can be written off separately. To qualify, you need:

• Toll receipts or electronic statements from toll passes.
• A business mileage log proving the trip was work-related.

If You Use the Standard Mileage Rate 

If you use the IRS standard mileage rate, toll charges are not included in the mileage calculation. However, you can still write off tolls for work separately, along with parking fees.

Tracking Your Toll Expenses Properly

To ensure you claim all eligible toll deductions, follow these best practices:

• Use a mileage tracker app like MileageWise to log business-related trips.
• Save all receipts and toll invoices (paper or digital copies).
• Keep bank statements or in-app transaction logs from toll passes like E-ZPass or FasTrak.

Filing Your Tax Return

Tax season usually ends on April 15, so make sure to file your tax return on time.

• Self-employed individuals should report toll expenses on Schedule C (Form 1040) under business expenses.
• Employees eligible for deductions may need to use Form 2106 for unreimbursed expenses.

Make sure to keep your receipts and bank statements for at least three years after filing to support your deduction claims in case of an IRS audit.

Final Thoughts

Tolls are tax deductible if they are related to business travel, but they are not deductible for personal or commuting expenses. If you are self-employed, a gig worker, or a business owner, tracking tolls properly can lead to valuable tax write-offs. Make sure to keep accurate records and use a reliable mileage tracker like MileageWise to ensure you maximize your deductions and stay compliant with IRS rules.

Need a smart way to track mileage and tolls? Check out MileageWise for automated mileage logs and detailed expense reports that help you claim every eligible deduction!