Is computer equipment tax deductible?
It depends. Computers (desktops, laptops, and accessories) are often deductible for business use, but you may need to depreciate the cost over time unless your tax rules allow immediate expensing.
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On this page: Short answer · When it applies · When it doesn’t · Example · Records · Related · FAQ
Short answer
Depends. Computer equipment is generally tax deductible when used to earn business income. The amount you can deduct depends on your business-use percentage and whether your tax rules treat the purchase as an immediate expense or a depreciable asset.
If you use the computer for both business and personal reasons, claim only the business portion and keep records.
When it’s more likely deductible
- The computer is purchased primarily for business activities
- You use it for income-producing work (client work, operations, administration)
- You can support business use with a reasonable percentage
- You properly apply the correct method (expense vs depreciation) for your jurisdiction
- Accessories used for business (monitor, docking station, external drive) are documented
When it’s not deductible (or risky)
- The computer is mainly for personal use (gaming, entertainment, personal browsing)
- You claim 100% business use but can’t support it
- You expense a purchase that must be depreciated (wrong timing)
- You don’t have receipts or proof of payment
- The purchase is for hobby use rather than income-producing work
Example
A freelance developer buys a laptop used about 80% for client projects and 20% personal. The laptop cost is generally deductible based on business use (80%). Depending on tax rules, the developer may deduct it in the current year or depreciate it over time.
What records to keep
- Receipt/invoice showing the item, price, and purchase date
- Proof of payment (bank/credit card statement)
- Notes supporting business purpose (job role, usage, projects)
- Business-use percentage support (policy, time logs, device assignment)
- Depreciation schedule if required (asset record, method used)
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Can I deduct a laptop for remote work?
Often yes if it’s required for your income-producing work. If it’s mixed-use, claim only the business portion.
Are monitors, keyboards, and accessories deductible?
Often yes if used for business. Smaller accessories may be expensed, while higher-cost items may need to be treated as equipment depending on local rules.
What’s the easiest way to support business use?
Use a dedicated work device or maintain a clear, consistent business-use percentage supported by records.
Looking for related deductible expenses? ← See Equipment tax deductibility
Last reviewed: January 31, 2026