Is cloud hosting tax deductible?
Usually yes. Cloud hosting is commonly deductible when it supports business activity (hosting a website/app, storing business data, running services). If you also use the service personally, you generally deduct only the business-use portion.
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On this page: Short answer · When it applies · When it doesn’t · Example · Records · Related · FAQ
Short answer
Yes. Cloud hosting is usually tax deductible when it is used for business purposes and you keep records of the expense.
If the hosting account is used for both business and personal projects, you generally deduct only the business-use portion.
When it’s more likely deductible
- You use hosting or cloud services for a business website, app, email, or data storage
- The service supports ordinary and necessary business operations (hosting, backups, deployment, CDN)
- You pay for the service and keep invoices/receipts and proof of payment
- If mixed-use, you can explain a reasonable allocation (business vs personal)
When it’s not deductible (or risky)
- The hosting is primarily personal (personal website, hobby projects with no business purpose)
- You claim 100% business use but personal use is clearly significant
- You don’t keep invoices/receipts or proof of payment
- The cost is reimbursed and you try to deduct it again
Example
Example: allocating mixed-use hosting
- Hosting cost: $25/month
- Estimated business use: 80%
- Potential deductible portion: $20/month
Use a reasonable, consistent method and keep a brief note explaining your allocation.
What records to keep
- Invoices/receipts from the hosting/cloud provider
- Proof of payment (card statement, bank record)
- A short note describing business purpose (e.g., hosting client site, business web app)
- If mixed-use, a note describing your allocation method (e.g., % business use)
FAQ
Is cloud hosting tax deductible?
Usually yes if cloud hosting is used for business purposes (such as hosting a website, app, or storing business data) and you keep records of the expense.
Are domain names and website hosting tax deductible?
Often yes when they support business activity. Keep invoices and proof of payment, and be prepared to explain how the services are used for your business.
What records should I keep for cloud hosting deductions?
Keep provider invoices/receipts, proof of payment, and a note describing business purpose. For mixed-use services, keep a reasonable allocation method.
Looking for related deductible expenses? ← See Is software tax deductible?
Last reviewed: January 2026