Transportation expenses on a business trip are deductible Go by plane, train or bus—the actual cost of the ticket to ride is deductible, as well as any baggage fees.

Under current 2026 tax regulations, travel expenses are deductible only if they are ordinary and necessary for your business, profession, or job. For self-employed individuals and business owners, 100% of travel costs like airfare, lodging, and local transit are deductible when the primary purpose of the trip is business. However, "unreimbursed employee expenses" for W-2 workers are generally not deductible on federal returns due to the Tax Cuts and Jobs Act (TCJA) which remains in effect. A major nuance is the 50% limit on business meals, which typically applies unless a specific temporary exception is active. Personal side-trips or "lavish/extravagant" expenses are strictly excluded. To claim these deductions, you must maintain meticulous records, including receipts and a log of the business purpose for each expense. For 2026, the standard mileage rate for business use of a vehicle has increased to 72.5 cents per mile, reflecting the higher costs of fuel and vehicle maintenance.