Transportation expenses are any costs related to business travel by company employees. An employee who travels for a business trip is generally able to claim the cost of travel, hotel, food, and any other related expense as a transportation expense.

According to 2026 IRS guidelines, the ability to deduct transportation expenses depends heavily on your employment status. Self-employed individuals and small business owners can deduct ordinary and necessary costs of traveling away from home for business on Schedule C. However, most W-2 employees can no longer deduct unreimbursed business expenses due to tax law changes. Exceptions exist for Armed Forces reservists (traveling more than 100 miles from home), qualified performing artists, and certain state or local government officials. For a deduction to be valid, the trip must be "away from your tax home" and require sleep or rest. In 2026, the standard mileage rate for business travel has risen to 72.5 cents per mile, reflecting higher vehicle operating costs. Commuting from your home to your regular place of work is never deductible, as it is considered a personal expense.