Is internet tax deductible?
Usually yes for the business-use share. If you are self-employed and use internet service to run your business, the business portion can generally be deductible. Shared home internet requires a reasonable allocation; a genuinely business-only service can have a much stronger case for a full deduction.
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On this page: Short answer · Who this applies to · When it's deductible · When it's not deductible · Home business deduction · Deduction % calculator · Example · Records · Is internet a utility? · IRS sources · Related · FAQ
Short answer
Usually yes for self-employed business use. Deduct the portion of internet service that is ordinary and necessary for your business. Personal use is not deductible.
There is no IRS-approved “standard percentage” for shared home internet. Your percentage should come from a reasonable method that reflects how the service is actually used.
FreshBooks — Organize internet and business expenses
Keep recurring business costs categorized and save the records you use to support your business-use allocation.
Who this typically applies to
- Self-employed people and sole proprietors using internet access to operate a business
- Freelancers and contractors using internet for client work, sales, administration, or delivery of services
- Online and home-based businesses that rely on internet service to earn business income
W-2 employees: most employees cannot deduct unreimbursed internet or other job expenses on a federal return. Form 2106 remains limited to certain categories, including Armed Forces reservists, qualified performing artists, fee-basis state/local officials, and employees with impairment-related work expenses.
When internet is tax deductible
- The service is used in an active trade or business
- The business use is ordinary and necessary for the work you do
- You separate personal use from business use when the same connection is shared
- You keep bills, proof of payment, and a short record explaining your allocation method
When internet is not deductible
- The service is entirely personal
- You claim 100% of a shared household connection without support for 100% business use
- An employer or client reimbursed the cost and you are trying to deduct the same economic expense again
- The claimed percentage is based on a round number with no reasonable connection to actual business use
Can I write off internet for my home business?
Yes, if it has a real business use. The internet deduction and home-office deduction are separate.
- You do not need a qualifying home office to deduct legitimate business-use internet.
- Do not automatically use the home-office square-foot percentage; use a method that reflects internet use.
- The simplified home-office method does not automatically absorb internet. Publication 587 separates certain business expenses, such as business telephone costs, from expenses of using the home itself.
- A truly business-only connection can support a full business deduction more easily than a shared household plan.
See the home office deduction guide for the separate exclusive-use and actual-vs-simplified rules.
How much of my internet can I deduct for business?
There is no fixed IRS percentage. Deduct the business-use share you can reasonably support.
| Situation | Reasonable approach |
|---|---|
| Business-only service | Potentially 100% if there is no personal use |
| Shared home connection | Use a representative log or other method that reflects business and personal use |
| Shared family connection | Account for other household users, not just your own work hours |
| Provider/router records available | Use them if they meaningfully distinguish business from personal use |
Keep a short record of the method and sample period. An unsupported round percentage is weaker than a percentage tied to actual facts.
FreshBooks — Keep recurring internet costs organized
Record the full bill and keep your business-use calculation with your tax records so the deductible share can be supported consistently.
Internet deduction examples
Example: Sole occupant
- Monthly bill: $90
- Representative use: 40 business hours out of 60 total hours
- Business-use percentage: 66.7%
- Estimated monthly business share: about $60
For a family connection, include other household use in the allocation. Using only your own work and personal hours can overstate the business percentage.
What records to keep
- Internet bills and proof of payment
- Your business-use allocation method and representative calculation
- A brief note describing the business use
- For business-only service, records showing it is separate from household use
Revisit the percentage if business or household use changes materially.
Is internet considered a utility for tax purposes?
The IRS does not give internet its own named Schedule C line. The latest finalized Schedule C has Line 25 — Utilities and specifically discusses telephone costs there; Part V — Other Expenses covers ordinary business costs not deducted elsewhere.
Do not present one internet line assignment as an explicit IRS rule. Use an appropriate category consistently, deduct only the business share, and do not double count internet through both Schedule C and the home-office calculation.
Final 2026 Schedule C instructions are not yet available as of August 18, 2026. Confirm the final line numbers when filing your 2026 return.
FAQ
Can I write off internet for my home business?
Generally yes for the business-use share if you are self-employed and the internet is ordinary and necessary for your business. A qualifying home-office deduction is not required just to deduct a legitimate business-use internet cost.
Is home internet tax deductible?
The business-use portion can be deductible for a self-employed business. Shared personal use must be excluded using a reasonable allocation method.
How much of my internet can I deduct for business?
There is no fixed IRS percentage. Deduct the business-use share you can reasonably support. A dedicated business-only connection may support 100%, while a shared household connection requires an allocation that reflects personal and other household use.
Where do I deduct internet on my tax return?
The IRS does not give internet its own named Schedule C line. The current form has Line 25 for Utilities and Part V for ordinary business expenses not deducted elsewhere. Use an appropriate category consistently and do not double count the same internet cost.
Can I deduct internet if I work from home?
If you are self-employed, business-use internet can be deductible even if your home itself does not qualify for the home-office deduction. Most W-2 employees cannot deduct unreimbursed internet costs federally.
Is internet considered a utility for tax purposes?
Schedule C has a Utilities line and specifically discusses telephone costs, but the IRS instructions do not separately classify internet service by name. Avoid treating an internet-specific line assignment as an explicit IRS rule.
Looking for other deductible expenses? See the full Expense Deductibility Guide.
Last reviewed: August 18, 2026