Computer Repair Business Tax Deductions 2026

Last updated July 2026.

A self-employed computer repair or IT technician writes off the ordinary costs of running the business: replacement parts and components, diagnostic tools and equipment, software and licenses, the shop or home office, vehicle costs for on-site and mobile calls, business insurance, and the employer half of self-employment tax. Because computer repair and IT support are not specified service trades, most techs also keep the full 20% qualified business income deduction. The two write-offs that move the needle most are the parts you buy for jobs and the mileage on a mobile repair route.

What can a computer repair business write off on taxes?

You can deduct any expense that is ordinary and necessary for the business. That includes replacement parts (drives, RAM, screens, batteries, power supplies), consumables, diagnostic hardware and software, hand tools, a workbench and anti-static gear, the shop rent or a home office, the business-use share of internet and phone, remote-support and ticketing software, business insurance, and vehicle costs for on-site work. Each deduction needs a record showing the amount, date, place, and business purpose, which is why the itemized receipt, not the card statement, is what protects the write-off.

What is the business code for a computer repair business on Schedule C?

Most repair-focused businesses use NAICS code 811212 (computer and office machine repair and maintenance) in Box B of Schedule C. Techs who do broader IT support, networking, and managed services often use 541519 (other computer related services), and custom software or programming work fits 541511. Pick the one that best matches the bulk of what you do. The code does not change your deductions, but it should reflect your real activity.

Can a computer repair tech deduct parts and inventory?

Yes, and how you deduct them depends on whether you resell parts. If you install a part and bill the customer for it, that part is either cost of goods sold or a job material, deducted against the revenue it produced. If you keep a stock of parts on hand, you may be tracking inventory, and the deduction lands when the part is sold or used rather than when purchased. Either way, itemized receipts are essential: a single supplier order often mixes billable parts for a specific job with shop consumables, and only an itemized record lets you split them correctly.

Can a computer repair business deduct tools and equipment?

Yes. Diagnostic units, soldering and repair tools, testing equipment, a dedicated repair computer, external drives, and networking gear used in the business are deductible, either expensed in the year you buy them or through Section 179, which lets you write off the full cost of qualifying equipment up to the annual limit in the year it is placed in service. Keep the receipt for each tool, because a mixed big-box run needs its business items separated from anything personal.

Can a computer repair business deduct mileage for on-site calls?

Yes. If you drive to customers for on-site or mobile repair, you deduct either the standard mileage rate or your actual vehicle costs. The 2026 IRS standard mileage rate is 72.5 cents per business mile. Track the miles for each call with the date, destination, and purpose, because the deduction is only as good as the log behind it. For a mobile-only tech with no shop, the vehicle is often the second largest deduction after parts. A dedicated business vehicle can also be deducted through actual costs plus depreciation if that method gives a bigger write-off.

Can a computer repair business deduct a home office or shop?

Yes. If you rent a storefront or shop space, the rent and its utilities are fully deductible. If you work from home, a space used regularly and exclusively for the business qualifies for the home office deduction, either the simplified $5 per square foot up to 300 square feet, or the regular method using the business-use percentage of actual home costs. A bench in a spare room used only for repairs counts; the kitchen table does not.

Do computer repair and IT businesses qualify for the 20% QBI deduction?

Generally yes. The qualified business income deduction lets eligible self-employed people deduct up to 20% of net business income, and it phases out above the income thresholds only for specified service trades such as law, accounting, and consulting. Computer repair and general IT support are not on that list, so most techs keep the full 20% even at higher income, subject to the wage and property limits that apply once you pass the annual threshold. It comes off net income after your other write-offs, so tracking those first makes the QBI deduction larger. Keeping client systems monitored is part of the job, and the uptime monitoring that checks sites, APIs, and ports you pay for to watch a client's servers is a deductible business subscription.

How much self-employment tax does a computer repair tech pay?

Self-employment tax is 15.3% on 92.35% of your net profit: 12.4% for Social Security up to the annual wage base, plus 2.9% for Medicare with no cap. It is on top of income tax, which is why setting aside roughly a quarter to a third of profit for taxes is wise. You deduct half of the self-employment tax on your return, and every legitimate deduction lowers the net profit the tax is calculated on. Most techs also owe quarterly estimated taxes rather than a single April payment.

How should a computer repair business keep records for taxes?

Keep a digital copy of every parts and supply receipt and a running total per category, updated monthly. Photograph the itemized supplier and hardware receipts, save emailed ones to a folder, and log your mileage as you drive. Then turn that into a categorized spreadsheet your preparer can use. A self-employed expense tracker that reads receipts and exports Schedule C categories handles the data entry, and the receipt scanner for taxes workflow keeps the itemized substantiation the IRS wants for parts. Keep records at least three years from filing, longer if income was substantially understated.

None of this replaces advice from a tax professional who knows your numbers, but the habit that makes it work is the same: capture the itemized receipt when you buy parts, and let the categories build as you go.