Business Expense Deduction Estimator Tax Year 2026
See how your Schedule C business deductions reduce your actual tax bill — not just your taxable income, but the real dollar savings.
Expense Categories
Simplified method: $5/sq ft, max 300 sq ft ($1,500). Space must be used exclusively and regularly for business.
Enter your total bill; the business percentage below will be applied.
SaaS, cloud storage, project management tools, design software, etc.
Items over $2,500 may need to be depreciated or deducted under Section 179. This calculator assumes full expensing.
Only 50% of business meals are deductible. The calculator applies this limit automatically.
Standard mileage rate for 2026: $0.70/mile. Enter total business miles driven.
100% deductible for self-employed individuals. Capped at net self-employment income.
Capped at ~18.6% of gross net SE income (equivalent to 25% of net SE income after the self-employment adjustment) or $70,000, whichever is less.
Enter your business income to see results
Add your gross income and any business expenses to see how deductions reduce your total tax bill.
Your Total Tax Savings from Deductions
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Total Deductions
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Tax Savings
(Fed + SE + State)
(Fed + SE + State)
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New Effective Rate
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After-Tax Income
Deduction Breakdown by Category
| Category | Deductible | Tax Savings |
|---|
Before vs. After Deductions
Without Deductions
With Deductions
Savings
Commonly Missed Deductions
- Self-employment tax deduction (half of SE tax) -- already automatic, no action needed
- Business use of personal phone and internet service
- Professional memberships and industry dues
- Bank and credit card fees on business accounts
- Continuing education and professional certifications
- Home office deduction -- even a small dedicated space qualifies
- Mileage for client meetings, networking events, and conferences
- Business-related books, publications, and research subscriptions
Important: This calculator provides estimates for informational purposes only. It is not tax, legal, or financial advice.
Always keep receipts and documentation for all business expenses. Deductions must be ordinary and necessary for your trade or business.
Equipment over $2,500 may need to be capitalized and depreciated rather than expensed in a single year (Section 179 and bonus depreciation rules apply).
Consult a qualified CPA or tax professional for complex deductions, home office audits, and vehicle use substantiation.
Continue with your numbers
How This Calculator Works
- Tax without deductions: Calculates your total tax liability (SE tax + federal income tax + state tax) on your gross business income with no business expense deductions.
- Tax with deductions: Recalculates using net income (gross minus your deductions) through the same tax engine.
- Tax savings: The difference between the two total tax amounts is your actual dollar-for-dollar tax reduction from deductions.
- Business meals: Only 50% of business meal expenses are deductible per IRC Section 274.
- Home office (simplified): $5 per square foot, maximum 300 sq ft = $1,500 maximum deduction.
- Vehicle mileage: Standard mileage rate of $0.70/mile for 2026 (IRS Rev. Proc.).
- Health insurance: 100% deductible above-the-line, but capped at net self-employment income.
- Retirement: SEP IRA contributions capped at ~18.6% of gross net SE income (the 25% statutory rate applied after the self-employment adjustment) or $70,000 (2026 Section 415 limit).
- Marginal tax savings: Each category's tax savings is estimated by multiplying the deductible amount by your combined marginal rate (federal + SE + state).