Handyman tax deductions: what you can write off in 2026
Short answer: a self-employed handyman can deduct ordinary and necessary business costs on Schedule C: vehicle use (the IRS rate is 72.5 cents a mile for January to June 2026 and 76 cents from July 1), tools, materials, insurance, phone, software, advertising and more. You also owe 15.3% self-employment tax on profit, usually paid quarterly.
General information, not tax advice. Rules depend on your situation; talk to a tax professional.
Common deductions
| Expense | How it works |
|---|---|
| Vehicle | Standard mileage rate (72.5¢ a mile Jan–Jun 2026, 76¢ from July 1, 2026) or actual costs. Log every business trip. |
| Tools and equipment | Items up to $2,500 each can usually be expensed right away under the de minimis safe harbor; bigger items can be depreciated or expensed under Section 179. |
| Materials | Deductible as cost of goods or supplies; if you bill them to customers, the billed amount is income. |
| Insurance | General liability, tools insurance and commercial auto. Self-employed health insurance has its own deduction. |
| Phone and internet | The business-use share. |
| Software and apps | Job, invoicing and accounting software. |
| Advertising | Business cards, yard signs, website, directory listings. |
| Licenses and training | State registration, city business licenses, EPA RRP courses. |
| Home office | If you have a space used regularly and only for the business. The simplified method is $5 a square foot, up to 300 square feet. |
| Work clothes and safety gear | Safety gear and clothing that isn't suitable for everyday wear. |
Self-employment tax and quarterly payments
On top of income tax, you pay 15.3% self-employment tax (Social Security and Medicare) on net earnings, and you can deduct half of it. If you expect to owe $1,000 or more for the year, the IRS expects estimated payments. For 2026 income they're due April 15, June 15 and September 15, 2026, and January 15, 2027. A common habit is setting aside 25 to 30% of every payment you receive.
Records that hold up
- A separate business bank account and card.
- A mileage log with date, start, destination, purpose and miles.
- Receipts for every purchase, photographed the same day.
- An invoice for every job, with materials on separate lines.
Forming an LLC doesn't change these deductions on its own. See do you need an LLC.
Sources
- IRS: 2026 business standard mileage rate (72.5 cents)
- IFEBP: Mid-year increase to 76 cents from July 1, 2026
Questions
What can a handyman write off on taxes?
Ordinary and necessary business costs: vehicle use, tools, materials, insurance, phone, software, advertising, licenses and training, and a home office if you qualify.
What is the 2026 mileage rate?
72.5 cents a mile for business driving from January 1 to June 30, 2026, and 76 cents a mile from July 1, 2026.
Do handymen have to pay quarterly taxes?
Usually, if you expect to owe $1,000 or more. For 2026 income, payments are due April 15, June 15 and September 15, 2026, and January 15, 2027.
More guides
- Can a handyman do electrical work? What's allowed, state by stateWhat you can swap, what needs an electrician, and the rule in every state.
- Do you need an LLC for a handyman business?What an LLC protects, what it doesn't, and what it costs.
- Handyman certification: what exists, what's required, what's worth itThe one most handymen need, the optional ones, and what customers check.
- Handyman flat rate pricing: how to set it, with a sample price sheetThe formula, a sample price sheet, packages, and when not to flat-rate.