Is Your Cell Phone Tax Deductible? How the Business-Use Rule Works
Can you deduct your cell phone? If you use it for business, you can deduct the business-use share of the bill (and sometimes the phone). Here is how to figure the percentage.
Mylo Team • September 4, 2026 • 2 min read
The short answer
If you use your cell phone for business, part of the bill is deductible: specifically the business-use percentage. Use the phone half the time for work and roughly half the bill is deductible. If a line is used entirely for business, the whole bill qualifies.
Figuring the business-use percentage
The IRS expects a reasonable split, not a guess pulled from the air. Base it on how you really use the phone, for instance the portion of calls, data, or working hours that are business-related. Write down how you arrived at the number so you can defend it. If work calls are most of your usage, a higher percentage is reasonable; if it is mostly personal, keep it modest.
The device, and the clean-line option
Beyond the monthly bill, the business-use share of the phone itself can be deductible. If you want to avoid percentages altogether, a separate line or phone used only for business lets you deduct the full cost, and it makes your records much simpler. Many self-employed people find a dedicated line pays for itself in cleaner bookkeeping.
Keeping it expense-ready
Save your monthly statements, since a recurring charge without a bill behind it is hard to defend. A phone bill is one of several recurring deductions that are easy to forget, so fold it into how you keep track of business expenses, and see the bigger list in what you can write off.
The faster way: let Mylo keep the proof automatically
This is where Mylo quietly does the heavy lifting. It works in the background to capture every receipt from your inbox and the stores you shop at, matches each one to the card charge that paid for it, and files it as a categorized expense, so when you claim your phone and other recurring bills the proof is already there. No new card and no manual entry: Mylo works on top of the Visa, Mastercard, or Amex you already use, and syncs clean, categorized expenses to QuickBooks. Free for individuals on iOS, Android, and the web; teams are $9/user/mo (30-day free trial).
Sources: IRS guidance on business expenses (IRC section 162, Publication 535). This article is general information, not tax advice. Rules change and situations differ, so check with a qualified tax professional for your situation.
Frequently asked questions
Can I deduct my whole phone bill?
Only if the line is used entirely for business. For a phone you use for both, you deduct the business-use percentage. A dedicated business line is the simplest way to deduct the full amount.
How do I figure the business-use percentage?
Base it on how you actually use the phone, for example the share of calls, data, or time that is work-related. The number should be reasonable and something you could explain if asked.
Can I deduct the cost of the phone too?
Yes, the business-use share of the device can be deductible, either at once or over time depending on the cost and method. Apply the same percentage you use for the bill.
Can Mylo track my phone expense?
Yes. Mylo reads recurring charges like your phone bill from your inbox or feed and files them as categorized expenses, so the deductible portion is easy to total at tax time.
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