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Tax Deductible Website Costs

Adam B

We’ll keep this one short and sweet. You’d be surprised how few people know that the expenses incurred from the development and maintenance of your business website are tax deductible!


Keeping detailed records of all website-related expenses, including receipts, invoices, and bank statements is essential for claiming these deductions.


It’s also crucial to categorize your expenses correctly. For example, differentiate between capital expenditures (initial design) and operational expenses (maintenance, hosting).


With that in mind, here is a list of eligible website costs that you may be able to deduct for your business:


  1. Design and Development Costs: Initial website design and development costs can be considered capital expenses. However, these costs can often be amortized over several years.

  2. Maintenance and Updates: Regular maintenance, updates, and minor improvements to your website are typically deductible as regular business expenses in the year they are incurred.

  3. Hosting Fees: Monthly or annual website hosting fees are considered ordinary and necessary business expenses and are deductible in the year they are paid.

  4. Domain Registration Fees: Fees paid to register your domain name are deductible as business expenses.

  5. Subscription Fees for Tools and Plugins: Costs for subscriptions to website tools, plugins, and services (e.g., analytics, security) are also deductible.

  6. E-commerce Platform Fees: Fees for using e-commerce platforms (e.g., Shopify, WooCommerce) are deductible if they are used for business purposes.

  7. Marketing and Advertising: Expenses related to online marketing and advertising, including costs for SEO, pay-per-click advertising, and social media promotions, are deductible.



Disclaimer: Tax laws in your region can be complex and may change frequently. Consult with a tax professional or accountant to ensure you are correctly deducting your website expenses and complying with the latest regulations. 


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