Is cloud hosting tax deductible?
Generally yes — for business use. Recurring hosting, cloud infrastructure, CDN, and storage costs can be deductible business expenses. Domain purchases can require different treatment.
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On this page: Short answer · What hosting types qualify · Domain names · Mixed personal use · Schedule C · Example · Records · Related lookups · IRS sourcesFAQ
Short answer
Generally yes. Recurring cloud hosting, infrastructure, CDN, storage, and similar services can be deductible when used to operate a business or serve clients.
Routine domain registration is different from paying a large amount to acquire an existing premium domain; see the domain section below.
FreshBooks — Track hosting, domain, and infrastructure costs
Categorize AWS, web hosting, and domain renewal charges as business expenses throughout the year so your Schedule C deductions are organized at tax time.
What cloud hosting costs are deductible
| Hosting type | Deductible? | Examples |
|---|---|---|
| Web hosting (shared, VPS, managed) | Yes — 100% if business-only | Bluehost, SiteGround, WP Engine, Kinsta, Cloudways |
| Cloud infrastructure | Yes — 100% if business-only | AWS (EC2, S3, Lambda), GCP, Azure, DigitalOcean |
| Platform hosting / serverless | Yes — 100% if business-only | Vercel, Netlify, Railway, Render, Fly.io |
| CDN and edge services | Yes — 100% if business-only | Cloudflare, Fastly, AWS CloudFront |
| Cloud storage (business use) | Yes — 100% if business-only | AWS S3, Google Cloud Storage, Backblaze B2 |
| Domain registration and renewals | Yes — 100% if business-only | Namecheap, GoDaddy, Google Domains, Cloudflare Registrar |
| SSL certificates | Yes | DigiCert, Sectigo, Let's Encrypt (paid tiers) |
| Shared hosting with personal sites | Yes — business-use % only | Allocate by number of sites or storage used |
Domain names: Registration, renewal, and purchases
Routine registration and renewal fees for a domain used by an operating business are generally ordinary business costs. Examples include a business website domain, business email domain, or domains used for client projects.
A large amount paid to acquire an existing premium domain is different. That purchase can raise capitalization and intangible-asset issues, so do not assume a valuable acquired domain is an immediate current-year expense just because annual registration fees are.
Keep the registrar invoice and note whether the payment was a routine registration/renewal or the purchase price of an existing domain.
Mixed-use hosting accounts
If one hosting or cloud account supports both business and personal projects, deduct only the business-use portion.
Use a reasonable measure such as business sites, storage, compute usage, traffic, or another method that reflects actual use. Separate business accounts can make the records easier, but separation does not make the deduction automatic.
Where cloud hosting goes on Schedule C
Recurring business hosting, cloud infrastructure, CDN, storage, and similar technology services can generally be listed in Part V, Other Expenses under the latest final Schedule C instructions. On the current final form, Line 48 flows to Line 27b.
A purchased intangible, capitalized website/software cost, or other cost that must be amortized follows different rules. Final 2026 Schedule C instructions are not yet available as of August 18, 2026.
Example: Annual hosting and infrastructure deductions
Freelance web developer
- Routine business-domain registration and renewals: $60
- Managed web hosting: $360
- Deployment/platform hosting: $240
- Cloud storage and compute: $180
- CDN/security service: $240
- Total current hosting/infrastructure costs: $1,080
This example assumes the amounts are recurring operating costs, not the purchase of a valuable domain or another capital asset.
What records to keep
- Monthly or annual invoices from each hosting provider — most have invoice download in the account dashboard
- Domain registration receipts and renewal notices
- Proof of payment (bank or card statement)
- A brief note describing the business purpose of each service (e.g., "client project hosting," "business website CDN")
- For mixed-use accounts: a note explaining your allocation method
TurboTax — Deduct hosting and domain costs on Schedule C
TurboTax guides freelancers and developers through Schedule C software and hosting deductions and can help you enter mixed-use business expenses.
FAQ
Is cloud hosting tax deductible?
Generally yes when the hosting, cloud infrastructure, CDN, or storage is an ordinary and necessary business cost. Recurring technology services can generally be treated as business operating expenses.
Are domain names tax deductible?
Routine domain registration and renewal fees for a business domain are generally business costs. A large amount paid to acquire an existing premium domain can raise capitalization and intangible-asset issues and should not automatically be treated like an annual renewal fee.
Can I deduct AWS, GCP, or Azure costs?
Generally yes for the business-use portion of cloud compute, storage, databases, and related infrastructure used to operate a business or serve clients. Keep the provider invoices and a record of the business purpose.
What if I use a hosting account for both business and personal projects?
Deduct only the business-use portion. Use a reasonable allocation method, such as business sites, storage, compute usage, or another measure that reflects actual use.
What records should I keep for cloud hosting deductions?
Keep provider invoices, payment records, and a short description of the business purpose. For mixed-use accounts, keep the allocation method. For domain costs, distinguish routine registration/renewal from the purchase price of an existing valuable domain.
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Last reviewed: August 18, 2026