Can I deduct parking & tolls?
The Key Fact Most People Miss
Parking and tolls are not included in the IRS standard mileage rate. This is the single most important thing to understand about this deduction, and it’s the thing most self-employed filers get wrong. When you use the 70¢/mile rate, that covers gas, oil, insurance, depreciation, and maintenance — but parking and tolls are separate.
This means every time you pay for parking at a client’s office, feed a meter during a business meeting, or drive through a toll on a business trip, that cost is deductible on top of your mileage deduction. It’s bonus money that many filers leave on the table.
What Counts (and What Doesn’t)
| Expense | Deductible? | Details |
|---|---|---|
| Parking at a client’s office | Yes | Business trip — fully deductible |
| Meter parking during a business meeting | Yes | Business trip — track it |
| Toll on a highway to a client site | Yes | Business trip — deductible in full |
| Airport parking during a business trip | Yes | Part of business travel |
| Parking garage at your own regular office | No | Commuting — never deductible |
| Toll on your daily commute | No | Commuting — never deductible |
| Parking ticket / fine | No | Penalties are never deductible |
| Valet tip at a business dinner | Yes | Part of the parking cost |
How Much This Actually Adds Up To
That’s an extra $960 on top of the mileage rate that many filers forget to claim. At a 25% marginal tax rate, that’s $240 back in your pocket — just for tracking what you’re already spending. Use the mileage calculator to see your base deduction, then add parking and tolls on top.
The Commuting Line
The IRS draws a hard line between business trips and commuting. Your daily drive to a regular, fixed place of business is commuting — and nothing about that drive is deductible (not the miles, not the parking, not the tolls).
This changes if you have a home office. When your home is your principal place of business, driving from home to a client site is a business trip — not a commute. That makes the parking and tolls at the client site deductible. This is one of the biggest reasons a home office qualification matters for vehicle deductions.
The Bottom Line
Business parking and tolls are deductible on top of the standard mileage rate. They’re explicitly excluded from the 70¢/mile, so you get both. Commuting parking and tolls are never deductible. Track them on your mileage log, and don’t leave this easy money on the table — for active self-employed filers, it’s often $500-$1,500/year in additional deductions.