Question

Can car repairs be tax deductible?

Car repairs are not tax-deductible for personal vehicles, but they can be deductible if the car is used for business purposes. 

If you are self-employed, a freelancer, or a business owner and use your car for work, some repair costs may be tax-deductible. Repairs such as brake replacements, engine fixes, tire changes, or oil changes can qualify if they are needed to keep the car running for business use. However, you can only deduct the part that is related to business purposes. For example, if you use your car 60% for work and 40% for personal use, then only 60% of the repair cost can be deducted. 

You can also opt for the standard mileage deduction, which provides a set rate per mile instead of claiming individual repair costs. When using the standard mileage method, repair expenses generally cannot be deducted separately because they are already included in the mileage rate. 

Employees who use their personal cars for work typically cannot deduct repair costs under current federal tax rules. 

What counts as a “repair” for tax deduction? 

Deductible repairs: Repairs that keep the car in working order, such as replacing a radiator, fixing brakes, or changing the oil, are tax-deductible. 

Non-deductible improvements: Changes that are expensive and intended to extend the car’s long-term life are considered improvements and are usually not deductible.