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Small Business Tax Deductions: 25 Write-Offs You Can Actually Use
By Eric Bonnette • Updated 10/31/2025
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Understanding deductions in simple terms
A deduction is an expense you can subtract from your income before paying taxes.
If your business earns $80,000 and you have $20,000 in legitimate deductions, you only pay tax on $60,000.
Example: Lisa runs a home bakery. She deducts her baking supplies, ingredient costs, and 25% of her kitchen utilities. Those deductions save her several thousand dollars in taxes each year.
Common deductions most small businesses can use
| Category | Example | Why it qualifies |
|---|---|---|
| Home office | Portion of rent, electricity, internet | Used regularly and only for business |
| Vehicle mileage | 70¢ per mile (2025 rate) | Covers gas, wear, and depreciation |
| Business insurance | General liability, professional | Protects your business operations |
| Advertising | Website hosting, online ads | Promotes your business |
| Education | Courses to improve your skills | Helps maintain or improve your trade |
| Equipment | Computer, tools, printer | Necessary for work duties |
| Meals | With clients for business discussion | 50% deductible with documentation |
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