Tax deduction guide

Is home internet tax deductible for a business?

Tax year 2026 · Updated October 15, 2026

When it counts

  • Home internet you use for work. The business share counts.
  • Internet at a separate business location, like an office or a studio. It counts as a business utility.
  • A mobile hotspot plan used for work. The business share counts.
  • You work from a home office. The business share of the internet bill is claimed as a business utility, not as part of the home office square footage calculation.
  • Utilities go on Schedule C, line 25.

When it doesn't

  • The personal share. Streaming, family browsing and everything else that is not work.
  • Claiming 100% when the line is also used personally. If you have one connection and use it for both, choose the business share.
  • Counting it twice. Claim it once, as a utility. Do not also count it in your home office costs.

A worked example

Your home internet costs $70 a month. You work from home and use about 40% of it for the business.

  • Monthly bill: $70.00
  • Business use: 40%
  • Business share each month: $28.00
  • Over 12 months: $336.00

It goes on Schedule C, line 25, utilities.

What records to keep

  • The monthly bills.
  • A short note on how you worked out the business share, written when you first claimed it. Use the same method each year.
  • If you buy a router or modem for the business, the receipt. At $2,500 or less, you can deduct your business share this year.

Common questions

How do I figure the business percentage?

Choose a method that fits how you use the connection, like the share of your online time that is work. Write it down and keep using it.

Can I deduct internet if I only work from home some days?

Yes, for the business share. A part-time home worker has a smaller share than someone who works from home every day.

Does the simplified home office method cover my internet?

No. The simplified method covers the space, at $5 per square foot. Your internet's business share is claimed on its own, as a utility.

Sources

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