Are Parking & Tolls Deductible On Top of Mileage? (2026 Freelancer Guide)

Published: July 13, 2026 · Reading time: 6 min

TL;DR: Yes — business parking and tolls are deductible on top of the $0.725/mile standard mileage rate. The per-mile rate only covers gas, depreciation, insurance, and maintenance; it does not include parking or tolls, so you add them separately. The catch: commuting parking and tolls are never deductible, and parking tickets and toll fines never count. Most freelancers list business parking and tolls in Schedule C Part V, Other Expenses, while Line 9 holds the mileage total. Pair this with a contemporaneous mileage log.

If you drive for your freelance business, you have probably heard that the standard mileage rate "covers everything." It does not. One of the most common — and most expensive — mistakes freelancers make is assuming that the $0.725 they claim per mile already includes the $18 they paid to park at a client's building or the $6.50 toll they hit driving to a job site. It doesn't. Those are separate, additional deductions, and skipping them means leaving real money on the table every year.

What the Standard Mileage Rate Actually Includes

The costs baked into $0.725/mile

The 2026 standard mileage rate is $0.725 per business mile. The IRS designs that number to bundle the ongoing costs of operating your vehicle:

• Gas and oil
• Depreciation (or lease payments)
• Insurance
• Maintenance and repairs
• Tires and general wear

When you multiply your business miles by the rate, you are already accounting for all of the above. That is the whole point of the standard mileage method — it saves you from tracking every fuel receipt. For the full rate history and how it's set, see our 2026 IRS mileage rate breakdown.

The costs the rate does NOT include

Here is the part that trips people up. The rate deliberately leaves out several costs, which you can deduct on top of your mileage:

• Business parking fees
• Tolls
• The business-use portion of vehicle loan interest
• The business-use portion of state and local registration fees

Parking and tolls are the two that come up constantly for freelancers, so they are the focus here.

Why Parking and Tolls Are Separate — Under Both Methods

Because parking and tolls sit outside the per-mile rate, you add them as their own deduction. This is not a loophole; it is how the IRS structures the deduction in Topic 510 and Publication 463.

Crucially, this works the same way whether you use the standard mileage rate or the actual-expense method. Even freelancers who deduct actual gas, insurance, and depreciation still add parking and tolls separately — they are never considered part of the core vehicle-operating bucket. So no matter which method you pick, business parking + business tolls are additive.

The Commuting Exception (Read This Twice)

This is where deductions get denied in an audit. The deductibility of parking and tolls follows the business purpose of the trip, exactly like your miles do.

• Deductible: Parking and tolls for a business trip — visiting a client, driving to a job site, picking up supplies, meeting a vendor away from your regular base.
• Never deductible: Parking and tolls for your commute — driving between home and your regular place of work.

Commuting is a personal expense, full stop, even for the self-employed. If you rent a monthly spot in a garage next to the office you work from every day, that is a commuting cost — not deductible. But the $22 you pay to park downtown for a two-hour client meeting? Deductible. The line is identical to the one between commuting miles and business miles, so if you have that straight, you already understand parking and tolls.

Where Parking and Tolls Go on Your Return

This is a genuine point of confusion, so let's be precise.

Your car and truck expenses total — the mileage deduction or your actual costs — goes on Schedule C, Line 9. That is the line for the per-mile (or actual) vehicle figure.

Business parking and tolls are not part of that Line 9 number. If you fold them into your mileage total, you either double-count or muddy the math. The common, clean practice is to list business parking and tolls in Part V, Other Expenses, then carry the Part V subtotal to Line 27a. That keeps Line 9 as a pure mileage figure and gives you an itemized, auditable list of each parking and toll charge with its business purpose.

If you are new to the form, our walkthrough on filling out Schedule C shows how Part V feeds Line 27a.

Toll Transponders (E-ZPass and Friends)

Transponders make tolls easy to pay and easy to over-deduct. Your E-ZPass account mixes personal, commuting, and business tolls into one monthly charge — and only the business-trip portion is deductible.

Do not deduct the full statement. Instead:

1. Download the itemized transponder statement, which lists every toll by date, time, location, and amount.
2. Flag the tolls that occurred during business trips.
3. Cross-check those dates against your mileage log — the business toll on the 14th should line up with the client trip you logged on the 14th.

That reconciliation is your best defense. When toll dates match logged business miles, the deduction tells a consistent story.

Non-Deductible: Tickets and Fines

Parking tickets and traffic fines are never deductible — the tax code specifically disallows fines and penalties paid to a government, no matter how business-related the trip was.

Keep the distinction sharp: a parking fee (a garage, lot, or meter charge for a business visit) is deductible; the citation you get for overstaying that meter is not. Same with tolls — the toll is deductible on a business trip, but a toll-violation fine is a penalty and stays off your return. Log them in separate places so an honest fee never gets contaminated by a disallowed fine.

The Records You Need

Parking and tolls are small-dollar and high-frequency, which is exactly why they get lost. For each charge, the IRS wants:

• Date
• Amount
• Business purpose (which client, which job)
• Location

A photo of the receipt or the transponder statement covers all four. For cash meters with no receipt, jot a contemporaneous note. This is the same standard behind a valid IRS receipt and the same recordkeeping timeline you use for everything else — hold the records for at least three years. And since these deductions ride on your trip logs, keep a contemporaneous mileage log rather than trying to reconstruct one after the fact.

Quick Reference: Is It Deductible?

Frequently Asked Questions

Can I deduct parking and tolls in addition to the standard mileage rate?

Yes. Business parking fees and tolls are deductible separately and on top of the standard mileage rate. In 2026 the rate is $0.725 per business mile, and it only covers gas, depreciation, insurance, maintenance, and similar operating costs. Parking and tolls are not baked into that per-mile figure, so you add them as their own line item. The same is true if you use the actual-expense method instead. Keep a receipt or transponder statement for each charge showing the date, amount, location, and business purpose.

Are commuting parking and tolls deductible?

No. Parking and tolls you pay driving between home and your regular place of work are personal commuting costs, and commuting is never deductible — even if you are self-employed. This mirrors the rule for commuting miles. What is deductible is parking and tolls tied to a business trip: visiting a client, driving to a job site, or running a business errand away from your regular base. The trigger is the business purpose of the trip, not the vehicle. Monthly garage fees near your regular office are commuting costs and stay non-deductible.

Where do parking and tolls go on Schedule C?

Business parking and tolls are car-related but are not part of the car-and-truck total on Line 9, which holds your mileage or actual-expense figure. In practice most freelancers list parking and tolls in Part V, Other Expenses, and carry that subtotal to Line 27a. Line 9 stays reserved for the $0.725-per-mile deduction (or actual costs). Keeping parking and tolls in Part V avoids double-counting them inside the mileage number and gives you a clean, auditable breakdown of each charge with its business purpose.

Can I deduct E-ZPass tolls?

Yes, but only the business-trip portion. A transponder like E-ZPass mixes personal and business tolls on one account, so you cannot deduct the whole monthly statement. Deduct only the tolls incurred while driving for business — a client visit or job site — and leave the commuting and personal tolls out. Download the itemized transponder statement, which lists each toll by date, location, and amount, and mark the business ones. Match those against your mileage log so the toll dates line up with the business trips you already recorded.

Are parking tickets tax deductible?

No. Parking tickets, traffic fines, and other penalties paid to a government are never deductible, even when you got them during a business trip. The tax code specifically disallows fines and penalties. This is different from a legitimate parking fee — a garage, meter, or lot charge for a business visit is deductible; the citation you get for overstaying that meter is not. The same goes for tolls: the toll itself is deductible on a business trip, but a toll-violation fine is a non-deductible penalty. Keep them separate in your records.

Authoritative References

• IRS — Standard Mileage Rates
• IRS — About Publication 463 (Travel, Gift, and Car Expenses)
• IRS — About Schedule C (Form 1040)
• IRS — Topic No. 510, Business Use of Car

Stop Losing the Small Receipts

Parking and tolls are easy money to deduct and even easier to forget — a $12 garage receipt in your pocket, a toll you barely noticed. CentSense fixes that: snap a photo of the parking or toll receipt and the AI reads the date, amount, and location, then tags it to the right Schedule C line — Part V, Other Expenses — right alongside your $0.725/mile mileage log. When tax time comes, export a clean, CPA-ready CSV with every deduction itemized and your business purposes attached.

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This article is educational and not tax or financial advice. Consult a qualified tax professional about your specific situation.