Parking at your regular place of business (your office or primary work location) is generally not deductible -- it is considered a commuting expense. Parking at a client site, temporary work location, or while traveling for business is deductible.
Pro Tip: Keep receipts for all business parking and tolls. If you use the standard mileage rate (67 cents/mile in 2024), you can still deduct parking and tolls separately -- they are not included in the mileage rate.
The key distinction: parking at your regular workplace is a non-deductible commuting expense. Parking at a client site, temporary work location, conference, or airport for a business trip is a fully deductible business expense. If you work from a home office, parking at any client or business location qualifies.
Tolls paid while driving for business are fully deductible -- even on your regular commute route, if the trip itself is for business. If you drive from your home office to a client meeting and pay a toll, that toll is deductible. Keep your EZ-Pass or FasTrak statements as documentation.
If you use the standard mileage rate (67 cents/mile for 2024), parking and tolls are deducted separately and in addition to the mileage deduction. The mileage rate covers fuel, depreciation, and maintenance -- but not parking or tolls. This is one of the few items you can double-deduct alongside the mileage rate.
Here is how this deduction typically works in real situations:
A self-employed consultant pays $1,200 in parking fees and $400 in tolls while traveling to client sites throughout the year.
An employee pays $150/month to park at their regular office location.
A real estate agent pays $800 in parking meters and garages while showing properties to clients.
Key Takeaway: The difference between a valid deduction and a denied one usually comes down to documentation, usage percentage, and proper structuring. The same expense can be fully deductible, partially deductible, or not deductible at all — depending on how it is handled.
Yes. Parking fees and tolls are deductible separately from the IRS standard mileage rate. The mileage rate covers gas, depreciation, and maintenance -- but not parking or tolls. You can deduct both the mileage rate and actual parking/toll costs for the same business trip.
No. Parking at your regular place of work is a commuting expense and is not deductible. However, if your employer provides a qualified parking benefit, up to $315 per month (2026) is excluded from your income. Parking at temporary work locations, client sites, and business destinations is deductible.
Keep receipts or electronic records for each parking and toll expense. Note the date, location, business purpose, and amount. For EZ-Pass or toll transponders, your account statement provides a complete record. For parking meters, a photo of the receipt or a note in your expense log is sufficient.
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