Can You Deduct Tolls From Taxes? + FAQs

According to a 2025 Mercury Insurance analysis, the average New York City commuter spends $4,680 per year on tolls – and yes, you can deduct tolls on your taxes, but only under specific conditions allowed by the IRS. Taxpayers who use toll roads for business, work-related travel, or other qualified purposes can turn those hefty fees into tax deductions, while purely personal or commuting tolls generally cannot be written off. Below we break down exactly who can deduct toll expenses, how to claim them, and the rules you need to know at both the federal and state levels.

🚗 Business Only: Only tolls for business, charitable, medical, or certain moving purposes are deductible – personal and commuting tolls are NOT tax-deductible on your federal return.
💼 Self-Employed Advantage: Self-employed individuals and business owners can write off tolls as a business expense, while most W-2 employees cannot deduct unreimbursed tolls under current IRS rules (2018–2025).
⚖️ IRS Rule Changes: The Tax Cuts and Jobs Act suspended employee expense deductions, meaning no federal deduction for commuting or unreimbursed employee tolls until 2026 (though a few states still allow these deductions).
💡 How to Claim: Deduct tolls by including them in your business vehicle expenses or travel costs. Even if you use the standard mileage rate for auto deductions, you can add tolls and parking fees on top for business travel.
🧾 Documentation is Key: Save all toll receipts or electronic statements (e.g. E‑ZPass logs). Detailed records of dates, routes, and purpose ensure your toll deductions hold up if audited and help maximize your tax savings.

What Are Toll Fees, and Can They Be Deducted on Taxes?

Toll fees (or tolls) are charges paid for the use of certain roads, bridges, tunnels, or highways. These fees are typically collected at toll booths or via electronic transponders (like E‑ZPass, SunPass, etc.) when you drive on toll roads. Tolls are considered user fees rather than general taxes – they fund the maintenance and infrastructure of the specific roadway you’re using. Unlike a gas tax or income tax (which everyone pays broadly), tolls are paid only by those who use that route.

From a tax perspective, toll expenses are not automatically tax-deductible just because you paid them. They are not treated like sales tax or property tax (which can sometimes be deducted as taxes paid). Instead, tolls are treated as a form of transportation expense. Whether you can deduct a toll fee on your tax return depends on why you paid it:

If the toll was incurred in the course of business or work-related travel, it may qualify as a deductible business expense.
If the toll was for personal reasons – like your daily commute or a road trip vacation – it is considered a personal expense and not deductible.
If the toll was paid while doing approved charitable work, or for certain medical trips or military moving expenses, it can potentially be deducted as part of those specialized deductions.

It’s important to note that tolls, by themselves, are never a standalone “tax deduction category.” You cannot simply list “tolls paid” as a deduction without context. Instead, toll costs must be folded into one of the allowed deductible categories (like business travel, charitable mileage, etc.). The IRS essentially asks: “What was the purpose of the trip where you paid the toll?” If the trip’s purpose fits a deductible category, then the toll is deductible; if not, the toll is not deductible.

In summary, paying a toll is not a tax credit or tax payment, but it can be part of a deductible expense if it meets the right criteria. Understanding those criteria – who can deduct tolls and under what circumstances – is the key to unlocking any tax savings from your toll road receipts.

Who Can Deduct Tolls from Taxes?

Not everyone gets to deduct toll road charges on their taxes. Here’s a breakdown of which taxpayers can claim toll expenses and which cannot, under current federal rules:

Business Owners and Self-Employed Individuals

If you’re self-employed or own a business, good news – you can typically deduct tolls that you pay as part of your business operations. The IRS allows businesses to deduct “ordinary and necessary” expenses of carrying on a trade or business, and travel expenses (including road tolls) generally fall into this category.

When can business tolls be deducted? Whenever you incur a toll while driving for business purposes, you can include that cost as a business expense. Common examples:

Driving to meet a client or attend a business meeting in another city (e.g., paying highway tolls on the way).
Traveling to a job site or between multiple work locations for your business.
Making deliveries or sales calls that require you to take toll roads.
Any other work-related driving (other than your normal commute) where you pay tolls en route.

For instance, if you’re a freelance consultant who drives to different client offices, or a construction contractor moving between job sites, the tolls you pay are part of your business travel costs. You would document those toll fees and later deduct them on your tax return as a business expense (more on how to do this in the upcoming sections).

Important: Commuting vs. business travel. The IRS makes a critical distinction between commuting (driving from your home to your regular workplace) and business travel (driving from one work location to another, or traveling to a temporary work site, client location, etc.). Even if you are self-employed, your commute from home to your principal place of business is not deductible. So, if you work from an office you rent or your own storefront every day, the tolls you pay to drive from home to that fixed work location are personal commuting expenses – not business deductions. But if you leave your office and drive to a client’s facility in another city (incurring tolls on the way), those tolls are part of business travel and are deductible.

What about incorporated businesses? If you operate as an LLC, S-corp, etc., and you drive for business, the same concept applies – tolls for business trips are deductible to the business. If you personally paid them, you should be reimbursed by the business or you can deduct them as an unreimbursed owner expense as appropriate. Many company-owned vehicles have toll transponders; the tolls charged to the company vehicle for business use are fully deductible by the company. (If the vehicle is also used personally and the company pays those tolls, the personal portion might need to be treated as a taxable fringe benefit to the employee – a nuance beyond our scope, but something for business owners to keep in mind.)

Bottom line for business owners: Tolls incurred in the course of doing business are 100% deductible as a business expense. Keep receipts or digital logs, and categorize these expenses as part of your travel or vehicle costs. We will cover how to actually claim them on tax forms later in the guide.

Employees (W-2 Workers) and Unreimbursed Tolls

If you are an employee who isn’t self-employed (i.e., you receive a W-2 from an employer), the rules for deducting tolls are much stricter – especially under recent tax law changes. In general:

Regular commuting tolls for employees are never deductible on federal taxes. Driving from your home to your main office or worksite is considered personal commuting, no matter how expensive or long your commute is. The IRS has consistently held (and courts have affirmed) that the cost of getting to work is a personal responsibility, not a business expense. This means any tolls, parking, gas, or mileage for your daily commute come out of your own pocket with no tax break. Even if your commute is 50 miles and crosses three toll bridges each day, unfortunately none of those daily tolls can be written off on your individual federal tax return.

Unreimbursed work travel: What if you’re traveling somewhere for your job (other than your normal workplace) and you pay tolls? Prior to 2018, employees could deduct certain unreimbursed business expenses (including travel costs like tolls) if they itemized deductions and those expenses exceeded 2% of their income. However, the tax law changes in 2017 (Tax Cuts and Jobs Act) put a temporary halt to this deduction for most employees. From 2018 through 2025, employees cannot deduct unreimbursed job expenses on their federal tax return. This suspension includes any tolls you paid out-of-pocket for work purposes (and weren’t reimbursed by your employer).
- Example: You work as an employee marketing manager and had to drive to a distant conference for work, paying $30 in tolls, and your employer did not reimburse you. Under current federal law, you cannot deduct that $30 on your federal taxes, because miscellaneous employee business expenses are suspended until 2026. (If this had happened before 2018, or if the rules change back, you might have been able to claim it as an itemized deduction subject to limits.)

Exceptions for certain employees: There are a few specific categories of employees who are still allowed to deduct unreimbursed work expenses during 2018–2025 despite the general suspension. These include Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses.
- If you fall into one of these special categories, you can still deduct unreimbursed travel costs (including tolls) by using IRS Form 2106. For example, a military reservist who must travel to drills and pays tolls can deduct those tolls above a certain threshold. For the vast majority of employees, though, no deduction is available at the federal level at the moment.

Employer reimbursements: If your employer does reimburse you for tolls (say, you turn in an expense report and they pay you back), then you don’t get a tax deduction – but you effectively got your money back tax-free since reimbursements under an accountable plan aren’t considered income. The tax deduction is basically taken by your employer who counts it as a business expense on their end. No double dipping – you can’t deduct tolls you didn’t personally bear the cost of. So if your company pays or reimburses your toll fees, you’re not out-of-pocket, and there’s nothing for you to deduct on your return.

Heads up: The inability for regular employees to deduct unreimbursed work tolls (and other expenses) is currently set to expire in 2026. Unless new tax legislation extends the suspension, starting with the 2026 tax year employees will once again be able to claim miscellaneous itemized deductions for unreimbursed job expenses (subject to the old 2% of AGI threshold). This means if you’re an employee with significant out-of-pocket costs like tolls, keep an eye on tax law updates. But as of now (2025), employees are generally out of luck for deducting tolls on federal taxes.

Personal Travel and Commuting (Not Deductible)

For completeness, let’s emphasize: personal-use tolls are not deductible. This covers any scenario where you’re paying a toll for non-work reasons, such as:

Commuting to your main job – driving from home to your office/factory/store each day. (Commuting is personal, even if you discuss work in the car or carry work materials with you. It’s the nature of the trip that counts, not what you do en route.)
Leisure travel – tolls paid during vacations, road trips, weekend getaways, or visiting friends/family. These might be travel costs, but they’re personal in nature, so they don’t qualify for any deduction.
Personal errands – e.g., you pay a toll going to a shopping center or to the airport for a personal flight. No deduction.

Essentially, if you’re not self-employed and the trip isn’t for one of the special purposes we’ll outline below (like charity or medical), your toll is just a normal living expense. The IRS views it similar to buying gas or paying for car maintenance for personal use – not deductible.

It can sting if you live in an area with mandatory tolls on your way to work. For example, New York-New Jersey commuters often shell out thousands in tolls annually just to get to their jobs. Unfortunately, the federal tax code offers no relief for that situation as of now. (Some state programs, which we’ll discuss later, do try to mitigate this for commuters.)

Charitable Volunteers and Medical Travelers

Beyond business use, toll expenses can sometimes be deducted for charitable or medical purposes:

Charitable travel: If you volunteer for a qualified charity or nonprofit organization, and you drive your personal vehicle as part of your volunteer service, you can deduct certain travel expenses as a charitable contribution when you itemize. This can include tolls. For instance, suppose you volunteer for Habitat for Humanity and drive through a toll road to reach the build site. You pay the toll out of your own pocket and are not reimbursed by the charity. You can deduct that toll cost as part of your charitable mileage deduction. The IRS allows volunteers to either deduct actual out-of-pocket driving costs (gas, tolls, parking) or use a standard charitable mileage rate (which is 14 cents per mile and fixed by law) plus any tolls and parking fees.
- Most people use the flat 14¢ per mile for simplicity, but importantly, tolls are deductible on top of that rate – they are not considered “included” in the 14¢. So keep your toll receipts when volunteering! They count as a donation of sorts. (Note: To deduct charitable travel expenses, you must itemize deductions on Schedule A and the trip must be primarily for serving the charity, not personal enjoyment.)

Medical travel: If you incurred tolls as part of traveling for medical care, these costs can be included in your medical expense deduction if you itemize. For example, if you have to drive 100 miles to see a specialist or to get treatment at a hospital, any tolls paid on the way there and back are considered part of your medical transportation expenses. The IRS lets you deduct either actual vehicle expenses for medical travel (gas, oil, tolls, parking) or use the standard medical mileage rate (which is adjusted each year for inflation – e.g., around 22 cents/mile for 2023, 24 cents/mile for the first half of 2024 and 22 cents for second half, etc.) plus tolls and parking.
- Just like with charity, the mileage rate for medical purposes does not include tolls, so those toll fees can be added separately. Medical expenses, including travel, are only deductible if you itemize and only the portion exceeding 7.5% of your Adjusted Gross Income (for most taxpayers) is actually deductible. So not everyone gets a benefit here, but if you have high medical costs, don’t overlook tolls to doctors or therapy appointments – every bit can help reach that threshold.

Moving for military duty: The Tax Cuts and Jobs Act also suspended the moving expense deduction for most people, but it left an exception for active-duty military members who move due to military orders. If you’re an active-duty military taxpayer who relocates and pays tolls during your move (for example, driving your car to the new base and paying turnpike tolls along the way), those tolls can be claimed as part of your deductible moving expenses on Form 3903. This is a fairly specific case, but it’s worth noting. (Non-military taxpayers cannot deduct moving costs, including tolls, under current law.)

Miscellaneous other scenarios: There are a few other edge cases (e.g., certain educators traveling between schools, or National Guard travel) that might allow toll deductions, but generally they fall under either unreimbursed employee expenses or above categories.

In short, tolls paid for charity work, significant medical needs, or military moves are deductible as part of those respective deductions. These are not everyday situations, but if they apply to you, make sure to include tolls in your calculations for those deductions. Just remember, to use any of these, you have to be able to itemize (except military moving, which is an above-the-line adjustment for qualifying personnel).

Quick Reference: Common Toll Deduction Scenarios

To recap who can and cannot deduct tolls, here’s a quick reference table of a few common scenarios:

Toll Expense Scenario	Tax Deductible?
Driving for your own business (self-employed) – e.g. visiting clients, job sites, deliveries while running your business.	Yes. Treated as a business expense. Deduct on Schedule C (for sole proprietor) or on your business tax return. You can use actual vehicle expenses or, if using the standard mileage rate, you may add tolls separately.
Daily commute to and from your regular job – tolls paid getting from home to your main workplace (office, factory, etc.) and back.	No. This is personal commuting expense. Not deductible on your federal return (and generally not on state returns either, except a few special programs). The IRS considers commuting costs a personal responsibility.
Traveling for charity, medical, or military move – tolls paid while volunteering, obtaining medical care, or moving on military orders.	Yes, if qualified. Deductible as part of charitable contributions (Schedule A) or medical expenses (Schedule A) if you itemize, or as moving expenses for active-duty military (Form 3903). For charity/medical, you can use standard mileage plus tolls, or actual costs. Ensure you meet any required thresholds or rules for these categories.

As shown above, the purpose of your trip is the deciding factor. Business and other qualified tolls get green lights for deductions, whereas personal commute tolls get a red light. Next, we’ll dive into how to properly claim those deductible tolls on your tax return.

How to Deduct Toll Expenses on Your Tax Return

So you’ve determined that you have some toll expenses that qualify as deductible (perhaps from business use, or charity, etc.). How do you actually claim these on your tax return? Let’s walk through the steps and best practices for deducting tolls:

1. Track and Document All Eligible Tolls

Start by keeping a record of every toll expense that you think might be deductible. Good record-keeping is essential not only to maximize your deduction but also to substantiate it if the IRS ever asks.

Save receipts or statements: If you pay cash at toll booths and get a receipt, keep those receipts in a safe place (or snap a photo with your phone). If you use an electronic toll pass (like E‑ZPass, FasTrak, TxTag, etc.), download your monthly statements. Many toll providers categorize charges by date and toll plaza – you can annotate which trips were for business or other deductible purposes. Some apps and mileage trackers (e.g., TripLog, MileIQ) also let you log toll expenses when tracking your trips.

Note the business purpose or event: For each toll, jot down the reason for the trip. For example: “#5 toll on I-90 – drove to client meeting on 3/5/2025” or “Tunnel toll – hospital visit on 7/10/2024 (medical)”. Having a contemporaneous note of why that toll was incurred will support your deduction. This could be in a notebook, spreadsheet, or within a mileage tracking app.

Separate personal vs. deductible tolls: It’s common to have a toll transponder that you use for all driving. At year-end, you’ll need to separate which toll charges were for deductible trips (business, etc.) and which were personal. This is why labeling trips is helpful. Only tally up the tolls for the qualifying trips – do not deduct any portion of personal or commuting tolls. If a trip was mixed-use (say you did a personal errand during a business trip), allocate the toll accordingly or err on the side of excluding it if primarily personal.

Don’t forget parking fees: Often tolls and parking go hand-in-hand when traveling for work or other purposes. Parking fees follow the same rules – not deductible for personal/commuting, deductible for business, etc. They can be added alongside tolls. Keep those parking stubs too.

2. Choose the Deduction Method (Mileage vs. Actual Expenses for Vehicle)

This step is specifically for business use of your vehicle. When deducting vehicle-related costs for business, you typically have two methods: the Standard Mileage Rate or Actual Expense method. The method you choose affects how you handle tolls:

Standard Mileage Rate: This is the simplified method where instead of tracking every gas fill-up and oil change, you deduct a flat rate per business mile driven (for example, 65.5 cents per mile in 2023; 67.5¢ in 2024; 70¢ in 2025 – the rate changes annually). If you use the standard mileage rate to calculate your vehicle deduction, you are allowed to deduct tolls (and parking) on top of the mileage deduction. The IRS mileage rate covers wear-and-tear, fuel, insurance, and general operating costs of your car, but it explicitly does not include tolls or parking fees.
- Those are extra. So, say you drove 1,000 business miles in 2025 – that would give you a $700 deduction from mileage. If in doing those miles you also paid $200 in tolls and $50 in parking, you can claim an additional $250 deduction for those expenses. When using tax software or forms, there’s usually a separate entry for tolls/parking when you use the standard mileage method (for example, Schedule C asks for “parking fees and tolls” separate from the mileage calculation).

Actual Expenses Method: Under this method, you add up all actual costs of operating your vehicle for business use – gas, repairs, maintenance, depreciation, insurance, etc. – and then deduct the business-use percentage of those costs. If you go this route, tolls paid for business trips can simply be added as one of the actual expenses (fully deductible for the business portion, since a toll is 100% attributable to that specific trip which is business). Many people using actual expenses will include tolls under the category of “Travel” or “Transportation” expense for the business. The key is you don’t lose out – whether you choose actual or mileage, tolls can be written off either way, as long as they were business-related. Just be careful: with actual expenses, do not also claim the standard mileage rate, it’s one or the other for a given vehicle in a given year.

Which method to choose? It depends on what yields a bigger deduction and your record-keeping preferences. The standard mileage rate is simpler and often beneficial for fuel-efficient or cheaper cars; actual expense can yield more deduction if you have high car costs. But in either case, tolls are deductible in addition (or included) for business travel, so be sure to claim them.

For charitable and medical mileage, the IRS also provides standard mileage rates (which are lower than the business rate). Those too do not include tolls, as noted earlier. So if you use those rates, you may add tolls on top. If you use actual expenses for charity/medical (rare, usually people just use the rate), you’d include the toll in actual costs.

3. Report Tolls on the Correct Tax Form/Schedule

Where you deduct toll expenses on your tax return will depend on the context of the expense:

Self-Employed / Sole Proprietor (Schedule C): If you’re filing a Schedule C (Profit or Loss from Business) for your own business, tolls can be reported in a couple of places. The most common is Line 9: Car and truck expenses – if you’re using the standard mileage rate, you’ll enter your mileage deduction and add any parking fees and tolls to that line. If using actual expenses, your total actual auto costs (including tolls) would also end up on line 9.
- Alternatively, some folks include out-of-town tolls under Travel expenses (Line 24a) if the toll was part of a larger travel expense for business (for example, you went on a business trip and drove, incurring tolls – those could be considered part of trip costs). Either approach is generally acceptable; what matters is that the toll gets recorded as a business expense somewhere on Schedule C. Make sure not to double deduct (don’t put the same toll cost in two places).

Partnership or S-Corp: If your business is a partnership or S corporation and it paid or reimbursed toll expenses, those would be included in the business’s Travel or Automobile expenses on the business tax return (Form 1065 or 1120-S). As an owner, if you personally paid tolls and weren’t reimbursed, discuss with your accountant – you may need to use an unreimbursed partner expense (UPE) or accountable plan reimbursement to properly get the deduction at the entity level. The specifics get technical, but fundamentally the expense should be captured on the business return for maximum benefit.

Employee (Unreimbursed) – for special cases: As mentioned, most employees can’t deduct now, but if you are in one of the allowed categories (reservist, etc.) or you’re reading this in 2026 or later and the rules changed back, you would use Form 2106 (Employee Business Expenses) to calculate your work-related mileage, tolls, etc. That form flows either to Schedule A (when it was a miscellaneous itemized deduction) or as an above-the-line adjustment for reservists. For example, a qualifying reservist would list their travel including tolls on Form 2106, and the deductible portion goes on Schedule 1 (adjustments to income). Again, this is relevant to limited cases under current law.

Charitable mileage tolls: These are deducted on Schedule A (Itemized Deductions) under the charitable contributions section. There isn’t a specific line for tolls – you would include the value of your contributed expenses as part of your cash contributions to the charity. In practice, you’d calculate “miles driven for charity × $0.14 + tolls + parking = total charitable contribution for travel”. Keep documentation in case of audit (the charity doesn’t usually give you a receipt for your mileage, so your own records are key).

Medical travel tolls: These go on Schedule A as well, under medical and dental expenses. You would add the toll costs to your other out-of-pocket medical expenses. There is a line for transportation expenses in the worksheet for medical costs in IRS Publication 502, but on your return you just lump it all as medical expenses total. Remember, only the portion of total medical expenses that exceeds 7.5% of your income is actually deductible.

Military moving tolls: If you’re deducting moving expenses as military, use Form 3903 (Moving Expenses). On that form, you can list transportation costs for the move. Toll charges during the move would be part of the “transportation and storage of belongings” costs. The total allowable moving expenses from Form 3903 go to Schedule 1 (as an adjustment to income).

State tax forms: Each state has its own way of handling these if they allow them. We’ll discuss states in the next section, but generally you might have a separate line or form to make an adjustment for tolls if allowed (for example, Massachusetts has you deduct E-ZPass tolls on your state Form 1; Pennsylvania has a Schedule UE for unreimbursed expenses; etc.).

Wherever you report it, make sure the amount of toll expenses you deduct matches the documentation you have. And if questioned by the IRS, be prepared to show that the toll was incurred for the reason you claimed (business, charity, etc.). Having logs and receipts, as discussed, will make this easy.

4. Calculate the Tax Savings

After entering your toll deductions, it’s worth understanding how it actually benefits you:

For business deductions (Schedule C or business entity): Tolls reduce your business taxable income. If you’re self-employed, that lowers both income tax and potentially self-employment tax by a bit. For example, if you have $500 of tolls you can deduct, and you’re in the 22% federal tax bracket, that’s $110 less in income tax, plus around $15 less in SE tax (if applicable) – roughly $125 saved, not to mention any state tax savings. It’s not dollar-for-dollar, but it’s significant over time, especially for large toll expenses.

For itemized deductions (charity/medical): Tolls will contribute to your total deductions. The actual savings depend on whether those move you above the standard deduction and by how much. For instance, $50 of tolls for medical may only help if you already have a lot of medical expenses over the threshold. Charitable toll deductions directly increase your charitable write-off, saving you whatever your tax rate is on that amount.

Knowing the impact can motivate you to bother tracking these small amounts. Tolls can really add up (as we saw with $4,680 a year in some cases), so the tax savings from deducting them can be quite substantial for high-usage drivers.

5. Follow Federal and State Guidelines Carefully

When claiming tolls, double-check IRS publications or instructions for any updates. The IRS Publication 463 (Travel, Gift, and Car Expenses) is a great resource that outlines what travel expenses are deductible and how to substantiate them. IRS Publication 17 (the general tax guide) also has sections on employee expenses and so on. Ensure you’re following the latest rules, especially if laws have recently changed.

If you use tax software, it will usually prompt you for information about your car and other expenses and apply the rules in effect. Still, your knowledge is the best defense against missing out or mis-applying a deduction. Now that we’ve covered the how on federal taxes, let’s explore how state tax laws might differ.

Federal vs. State Tax Rules for Toll Deductions

Federal tax law sets the baseline rules we’ve discussed: business tolls are deductible; personal/commuting tolls are not; employee unreimbursed tolls are suspended until 2026; charitable/medical/moving tolls have specific deductibility if you qualify. But when you file your state income taxes, the rules might not be exactly the same. Each state can decide whether to conform to federal tax law or implement its own deductions.

Here are some state-level nuances to be aware of regarding toll expenses:

States that allow unreimbursed employee expenses: A handful of states did not fully conform to the federal elimination of miscellaneous itemized deductions. This means in those states, you may still be able to deduct unreimbursed employee business expenses (including job-related tolls) on your state tax return, even though you can’t on your federal return. States known for this include Alabama, Arkansas, California, Hawaii, Maryland, Minnesota, New York, and Pennsylvania, among others. Each of these states has its own rules:
- For example, California and New York continued to allow the itemized deduction for unreimbursed employee expenses. A New York taxpayer who paid significant tolls for a work assignment could claim them on the NY itemized deduction schedule (IT-196) even though their federal Schedule A shows zero in that category. California’s Schedule CA adjustments would add back those expenses for state purposes.
- Pennsylvania doesn’t use the federal itemized system but offers a direct deduction of unreimbursed employee business expenses via Schedule UE. If you work in PA and had to pay tolls as a condition of your employment (and your employer didn’t reimburse you), you can list those tolls on PA Schedule UE and deduct them from your Pennsylvania taxable income. Pennsylvania broadly allows necessary employee expenses for the convenience of the employer – tolls to travel between work sites, for instance, would qualify.
- Each state will have specific instructions on what’s allowed. Typically, even where allowed, it must be required by your job and not reimbursed, similar to the old federal rules. So, commuting tolls usually still don’t count at state level either; it’s meant for other business travel.

States with commuter deductions or credits: Some states have gone a step further to help ordinary commuters with the cost of tolls and transit. A notable example is Massachusetts. Massachusetts offers a Commuter Deduction on its state income tax (Form 1) for amounts paid for tolls through an electronic toll system (E‑ZPass), as well as for transit passes. Essentially, if you’re a MA resident who pays tolls on Massachusetts toll roads using the E‑ZPass MA system, you can deduct those toll charges from your Massachusetts taxable income (provided you weren’t reimbursed).
- This is quite a unique benefit – it effectively makes a portion of your commuting tolls tax-deductible at the state level. The deduction is subject to certain caps and only for the amounts paid via the electronic system, but it’s a popular break for Boston-area commuters who use the Mass Pike or harbor tunnels daily. Massachusetts also allows a deduction for MBTA subway/bus passes and even recently added bicycle expenses – it’s all part of encouraging use of various commuting methods. No other state has a program identical to Massachusetts’, but it’s a great example of a state-level nuance.

States with toll credits: While not common, occasionally states or local jurisdictions offer tax credits related to tolls or congestion pricing. For instance, there have been proposals for a credit for residents paying a new congestion toll in New York City (once congestion pricing begins). As of 2025, there isn’t a widespread toll credit on state taxes, but always check your state’s tax credits list. Sometimes there are obscure credits for transportation costs, specific professions, or specific toll facilities.

States with no income tax: If you live in a state without income tax (like Texas, Florida, etc.), you obviously don’t need to worry about state tax deductions for tolls at all. Only the federal rules matter for you.

Key takeaway: Always review your own state’s tax instructions or talk to a tax professional about state-specific deductions. You might find that while federal law didn’t give you a break on those tolls, your state does. Or vice versa: your state might disallow something federal allows (though in this area, that’s less common). If you moved during the year or work in one state and live in another, consider the rules of both states.

For example, an employee living in New Jersey but working in New York might find that New York allows a deduction for unreimbursed expenses on the state return, whereas New Jersey (which ties more to federal rules) does not. You’d want to make sure to claim it on the NY nonresident return if applicable.

Documentation for state claims: If you claim tolls on a state return (like MA or PA), keep proof just like you would for federal. States can audit those deductions too.

In summary, federal law is generally more restrictive on toll deductions than some states are. After tackling your federal taxes, take that extra step to see if your state offers any relief for toll expenses – especially if you’re an employee with significant toll costs or a commuter using state toll programs.

Examples: How Toll Deductions Work in Real Life

Let’s illustrate with a few real-world examples how these rules play out, for both individuals and business owners:

Example 1: Self-Employed Consultant (Business Use)
Sarah is a self-employed environmental consultant who often drives to client sites across her region. She spent $300 on tolls over the year driving to various client meetings and project locations (in addition to other vehicle costs). Sarah meticulously logged each toll as a business expense. On her Schedule C, she uses the standard mileage rate for her car, which came out to $5,000 in mileage deduction.

She then adds her $300 of tolls (and $100 of parking fees) to her car expenses. This gives her an additional $400 deduction. By deducting the tolls, Sarah directly reduces her taxable business income. If she’s in the 24% tax bracket, that $300 in tolls saves her about $72 in federal tax (and some self-employment tax too). It also saves her a bit on state taxes. Not huge, but every dollar counts – and if she hadn’t tracked those tolls, she would have paid more tax than necessary. Because her tolls were all for client-related travel, the IRS fully allows it.

Example 2: W-2 Employee with Heavy Commute (Personal/Commuting)
John lives in New Jersey and works in New York City. Each day he pays about $20 in tolls (bridges, tunnels, turnpikes) to commute to his office in Manhattan. Over the year, his toll outlay is nearly $5,000. This is a painful expense, but under federal tax law John cannot deduct any of it. It’s all considered commuting. John doesn’t have any other job-related expenses that qualify, so he just has to eat the cost. He was hopeful when he heard about itemized deductions, but the tax code explicitly disallows the daily commute. John’s employer doesn’t reimburse commuting costs either (few do).

However, John checks into his state taxes: He finds that New York State (where he pays nonresident taxes because he works there) allows unreimbursed employee expenses as an itemized deduction. John had no other such expenses, and unfortunately, New York’s rules still classify commuting as non-deductible (they allow itemized deductions for unreimbursed expenses to the extent the expenses were for work, but not for travel from home to work). So even though NY hasn’t suspended misc. deductions, John’s tolls still don’t qualify because they’re commuting.

In the end, John gets no tax break at all for $5,000 of tolls. The only consolation might be if his employer offers a commuter benefit program (like using pre-tax dollars for transit or parking), but under current federal law, those programs cannot cover toll expenses – they cover transit fares and parking, but tolls aren’t included in the commuter benefit exclusion. John’s scenario is common: big city commuters bearing high toll costs with no direct tax relief. (As a side note, if John lived in Massachusetts instead and had a similar toll commute within MA, he could deduct those tolls on his MA state return thanks to the commuter deduction, but NJ/NY do not have such a credit for him.)

Example 3: Rideshare Driver (Independent Contractor)
Alex drives part-time for a rideshare service (like Uber) in Texas. As an independent contractor, Alex is considered self-employed. While driving customers, Alex sometimes takes toll roads to save time. The app charges the riders for the tolls, but suppose in Alex’s case the platform doesn’t reimburse him separately (some services do reimburse tolls; this can vary). Let’s say he paid $150 in tolls over the year shuttling passengers. When Alex prepares his taxes, he will report his driving income and also the expenses of driving. Alex uses actual expenses for his vehicle.

He will include that $150 of tolls as a deductible expense on his Schedule C, since those tolls were a cost of providing his service. Essentially, the riders paid him extra that likely got counted in his income, and the toll expense is the offsetting deduction. In the end, it washes out – he isn’t taxed on toll reimbursements from riders if he deducts the toll expense. If he hadn’t tracked it, he’d overstate his profits. For gig economy drivers, tolls and parking fees are often one of the line items they can deduct, in addition to mileage or actual car costs.

Example 4: Volunteer Charity Worker
Linda volunteers for an animal rescue nonprofit on weekends. About twice a month, she drives 60 miles (round trip) to the sanctuary, including passing through a toll station that costs $5 each trip ($10 per month in tolls). Over the year, she paid about $120 in tolls for her volunteer work, and drove 720 miles for the charity. Linda keeps a log of her volunteer mileage and tolls.

At tax time, Linda itemizes her deductions because she has significant mortgage interest and state taxes. She will claim a charitable contribution for her volunteer driving. She has two options: (a) Deduct the actual out-of-pocket costs (gas + $120 tolls + maybe some vehicle wear/tear calculation), or (b) use the standard rate of 14¢/mile. She chooses the simpler route (b). 720 miles × $0.14 = $100.80. Then, she adds the $120 of tolls to that for a total charitable contribution of $220.80 related to her volunteer driving. She puts $221 (rounded) as part of her charitable donations on Schedule A.

This yields perhaps a $50–$60 reduction in her taxes (assuming 22-24% bracket) – not huge, but she feels good about recouping a little bit of those costs, and every bit helps the budget. Importantly, if Linda didn’t itemize (say her standard deduction was higher than her other itemizables), she wouldn’t get to deduct this at all. Charitable driving expenses only count if you’re itemizing.

Example 5: Active-Duty Military Move
Sergeant Mike gets orders transferring him from California to a base in Virginia. He drives his family across the country in a move and incurs $80 in tolls along the highways. Because Mike is active-duty and moving due to orders, he can deduct reasonable moving expenses. Mike fills out Form 3903 and includes that $80 toll as part of his transportation costs (along with gas, truck rental, etc.). That $80 will directly reduce his taxable income on his federal return. If Mike’s in the 12% bracket, that’s about $10 saved in tax – not a lot, but the move was largely reimbursed by the military anyway. For a civilian, none of those moving costs would be deductible in 2025.

Example 6: Employee in a State with Deduction
Emily is a sales representative and an employee (W-2) based in Los Angeles, CA. She often has to use her personal car to visit clients around Southern California, racking up significant tolls on toll roads (yes, California has some toll roads, e.g., in Orange County). Her company doesn’t reimburse mileage or tolls. In 2025, she spends $400 on tolls for these client visits. Federal law: no deduction (misc. expenses suspended). However, California – which has its own rules – allows her to claim those unreimbursed employee expenses as an itemized deduction on her state tax return.

Emily keeps thorough records. On her California Schedule CA, she enters the $400 (along with some other small unreimbursed expenses) and is able to deduct it for California purposes. This might save her around $40 of California income tax (with CA’s ~10% marginal rate in her bracket). It’s not massive, but better than nothing. On her federal return, she sadly can’t deduct the $400 at all. If in 2026 the federal rule returns, Emily could potentially deduct those on her federal Schedule A (subject to limits). The takeaway is Emily gets a partial break at state level for being in California, which is something a similar employee in a full-conformity state wouldn’t get.

These scenarios show how the rules operate for different people. Most importantly, they show that context matters – who you are (self-employed vs employee), why you paid the toll, and where you file taxes can change the outcome.

Pros and Cons of Deducting Tolls

Like any tax deduction, writing off toll expenses has its advantages and limitations. Here’s a quick look at the pros and cons:

Pros of Deducting Tolls	Cons of Deducting Tolls
Lowers your taxable income: If you have deductible tolls (business, etc.), claiming them will directly reduce your taxable income, which can lead to a lower tax bill.	Strict eligibility rules: Only tolls for specific purposes (business, charity, etc.) are allowed. Personal and commuting tolls are completely non-deductible, limiting who can benefit.
Can yield significant savings: For those who pay a lot in tolls for work (e.g., truck drivers, sales reps, contractors in toll-heavy areas), the deductions could add up to hundreds or thousands in tax savings over a year.	Requires diligent record-keeping: You must save receipts and log the purpose of each toll. Poor documentation could lead to denied deductions if audited. There’s an administrative effort involved in tracking toll expenses.
Fairness for business costs: Deducting tolls makes it fair – you’re not taxed on money you had to spend to do your job or run your business. It essentially reimburses you (via tax savings) for necessary expenses.	Not available to many employees (until 2026): Due to recent law changes, most employees can’t deduct work-related tolls. They must rely on employer reimbursements or get no relief, which can feel unfair to those with high commuting costs.
Included with standard mileage method: Even if you opt for the simple mileage deduction for your vehicle, you won’t miss out on toll expenses – the tax code lets you deduct tolls on top of the mileage rate. This makes it easier to claim them.	Risk of misclassification: If you mistakenly deduct personal/commuting tolls as “business,” and the IRS catches it, you could face a bill for back taxes and penalties. It’s important to classify trips correctly – a bit of judgement is needed for gray areas (like semi-business personal trips).
State tax opportunities: Some states offer extra deductions or credits for tolls that the federal government doesn’t, which is a pro at the state level – you might save on state taxes if you know and use these rules.	Complex patchwork of rules: Navigating federal vs state differences, and keeping track of changing laws (like the TCJA sunset in 2026), can be confusing. Taxpayers need to stay informed or consult experts to ensure they’re taking advantage of deductions properly without violating rules.

Overall, the pros underscore that if you’re eligible, toll deductions can and do save you money – so it’s worth the hassle to track them. The cons remind us that not everyone can deduct tolls and that there is some homework involved in doing it right. Next, we’ll go over some pitfalls to avoid so you can safely enjoy the “pros” and minimize the “cons.”

Avoid These Common Mistakes When Deducting Tolls

When it comes to writing off toll fees on your taxes, people often slip up in a few predictable ways. Here are some common mistakes and how to avoid them:

Mistake 1: Deducting Non-Deductible Commuting Tolls. The #1 error is trying to write off your daily commute tolls as a work expense. Remember, commuting is never deductible on federal taxes. Don’t assume that just because you drive to work for business reasons, it counts – the IRS explicitly says your first and last trip of the workday (home-to-work and work-to-home) are personal. Avoid this mistake by clearly labeling which trips are commuting vs. legitimate business travel. If your tolls are for commuting, accept that they’re not tax-deductible (barring a specific state program like Massachusetts’ E-ZPass deduction).

Mistake 2: Not Keeping Proof of Toll Expenses. Many taxpayers forget to save toll receipts or E‑ZPass statements and then at tax time just estimate what they spent. This is risky. If audited, the IRS could disallow an unsubstantiated deduction. Avoid this by saving all documentation. Most electronic toll accounts have online history you can download – do that regularly. If you pay cash, keep receipts or use a logbook to jot down tolls. Good records will also help you calculate the total accurately rather than guessing.

Mistake 3: Double Dipping the Standard Mileage. If you use the standard mileage rate for vehicle expenses, do not include gas, oil, maintenance, depreciation, etc. separately – those are already built into the rate. However, do include tolls and parking in addition, as allowed. Some people either mistakenly include too much (double counting car expenses) or too little (thinking the mileage rate covers tolls when it doesn’t). The correct approach: claim either mileage+parking+tolls or actual expenses (including tolls). Don’t mix methods incorrectly. Tax software usually guides this, but if doing manually, be cautious.

Mistake 4: Deducting Tolls That Were Reimbursed. If your employer or client reimburses you for a toll, you cannot also deduct it. Similarly, if you carpool and your buddy gave you $5 for the toll you paid, you shouldn’t deduct the full toll since you weren’t out that money entirely. Deduct only the unreimbursed portion of expenses. Reimbursement means you already got paid back; a deduction is meant to relieve only your own costs. Also, if the toll was charged directly to your company (company toll transponder), then it’s the company’s expense, not yours.

Mistake 5: Overlooking State Tax Benefits (or Pitfalls). Some people either miss out on a state deduction they could take, or they assume state rules are the same as federal and get it wrong. For instance, not realizing that Pennsylvania lets you deduct unreimbursed job tolls could mean lost savings for a PA employee. Conversely, trying to deduct something on a state return that isn’t allowed could cause a state tax notice. The fix: know your state’s stance. We’ve highlighted key differences (like MA’s toll deduction), but always read your state tax booklet for a section on “differences from federal” or “deductions”. Take advantage of what’s allowed, and don’t assume something is deductible on your state just because it was on federal (or vice versa).

Mistake 6: Neglecting to allocate between business and personal use. If you have a mixture of trip purposes, it’s a mistake to throw all tolls into the “deductible” pile. For example, you have an E‑ZPass and at year-end you see $500 in toll charges. If only $300 of that was for business trips and $200 was for personal drives, you should only deduct $300. It’s a mistake to deduct the full amount. Make sure you go through and allocate appropriately. The IRS expects you to pro-rate expenses between deductible and non-deductible use when applicable.

Mistake 7: Forgetting the 2026 change (for employees). This is more of a future mistake: when 2026 comes, a lot of taxpayers and even preparers might have forgotten that unreimbursed expenses become deductible again (if no new laws intervene). The mistake would be continuing to not deduct things that actually have become allowed again. Conversely, if Congress extends the disallowance, the mistake would be trying to deduct them prematurely. The point is, keep updated. As 2025 ends, check whether the deduction for unreimbursed expenses (which includes tolls for work) is coming back. Avoid leaving money on the table when the rules shift.

By steering clear of these pitfalls, you can ensure that you’re deducting tolls accurately and advantageously. When in doubt, consult IRS publications or a tax professional to clarify the specifics – especially for tricky situations like partial personal use or multi-state issues.

Frequently Asked Questions (FAQs) about Tolls and Tax Deductions

Can I deduct tolls for my daily commute to work?
No. Commuting tolls are considered personal expenses and cannot be deducted on your federal tax return. Only a few states (like Massachusetts) offer limited deductions for commuting costs such as tolls.

Are toll road fees tax-deductible for self-employed individuals?
Yes. If you’re self-employed or a business owner, tolls paid for business-related travel are deductible as a business expense. Track these tolls and claim them on your Schedule C or business tax return.

Do tolls count as part of the IRS standard mileage rate deduction?
No. The standard mileage rate for business (or charity/medical) travel does not include tolls or parking fees. You can deduct toll charges (and parking) in addition to the mileage allowance for any qualified business trip.

Will unreimbursed tolls ever be deductible for regular employees again?
Yes. The current disallowance of unreimbursed employee expenses (including work-related tolls) is set to expire after 2025. Starting with the 2026 tax year, employees may once again deduct such expenses, unless new legislation extends the ban.

Can I deduct tolls on my state income tax return if I can’t on federal?
Yes. Some states provide tax breaks for tolls. For example, Massachusetts lets you deduct E‑ZPass tolls paid, and states like California, New York, and Pennsylvania allow certain unreimbursed employee toll expenses as deductions. Check your state’s rules to see if you can claim tolls on your state return.