Is a Cell Phone Tax Deductible? Plan and Device in 2026

When it counts

Mobile service. The business share of your monthly bill counts, including taxes.
A second line you keep only for business. It counts in full.
The phone itself. Only the business share counts. At $2,500 or less per item, the de minimis safe harbor lets you deduct your share this year. Above that, the phone is depreciated over 7 years, with Section 179 or bonus depreciation as faster options.
Phones are no longer treated as listed property. You need a reasonable estimate of your business use, not a call-by-call log.

When it doesn't

The personal share of your plan or phone.
The basic charge for the first landline into your home. It is personal, even if you take business calls on it.
A phone used only for personal things.
Claiming 100% when you also use the phone personally. If you have one phone and use it for both, pick the business share instead.
A phone you bought for yourself before your business started. It is depreciated from the day you first used it for work, and the safe harbor does not apply.

A worked example

Your plan costs $90 a month and you use the phone for the business about 60% of the time.

Monthly bill: $90.00
Business use: 60%
Business share each month: $54.00
Over 12 months: $648.00

The plan goes on Schedule C, line 25, utilities.

You also bought a $1,000 phone and use it about 50% for work. Your business share is $500. The phone cost under $2,500, so you deduct the $500 this year, on Schedule C, line 27b.

What records to keep

Your monthly phone bills.
The receipt for the phone, with the date.
A short note on how you worked out your business use, for example a typical month of calls, texts and data split between work and personal.
The date you started using the phone for work.

Common questions

Can I deduct my whole phone bill if I am self-employed?

Only if the line is used only for business. If you use the same phone for personal things too, deduct the business share.

How do I figure my business percentage?

Pick a method that makes sense for how you use the phone, write it down, and keep the note with your bills. A typical month of calls, texts and data is a common way to do it.

Is a new phone a one-time deduction?

For the business share, usually yes when it costs $2,500 or less. Above that, it is depreciated, unless Section 179 or bonus depreciation lets you deduct it sooner.

Sources

IRS Publication 334, Tax Guide for Small Business: the $2,500 safe harbor and splitting personal and business use.
IRS Publication 587, Business Use of Your Home: the first landline into a home is personal.
Instructions for Schedule C: the telephone and utilities lines, and where other expenses go.
IRS Notice 2015-82: the $2,500 per item or invoice limit.
IRS Notice 2011-72: how the IRS treats cell phones.
IRS Publication 946, How To Depreciate Property: depreciation, Section 179 and bonus depreciation.

Also cited by the WriteOff rules: 26 U.S.C. sections 162 and 262.