Are software subscriptions tax deductible?
Yes. Software and subscriptions you use for the business are deductible in the month you pay for them.
The rule
Monthly and yearly subscriptions, design tools, accounting software, cloud storage, email, video calls, are ordinary business expenses. A yearly plan paid up front is deductible in the year you pay it, as long as it covers twelve months or less.
A shared plan, like a family cloud storage account, is deductible by its business share.
A $16 monthly design tool is deductible in full.
Priced at 36¢ on the dollar, the rate of a $95,000 sole proprietor in California. Work out yours.
- Where it goes
- Schedule C line 27a, other expenses
- What to keep
- The emailed invoices. Reimburse reads the screenshot.
- Watch for
- Entertainment subscriptions are personal even if they inspire the work. A streaming service is deductible only when it is genuinely a working tool, for example a critic reviewing what’s on it.
Checked on September 25, 2026 against Publication 334, Tax Guide for Small Business and Instructions for Schedule C. An estimate for your records, not tax advice.
By the kind of work
What else each of these can deduct, and what they tend to miss.
See it on every receipt.
Snap it and Reimburse files it on the right Schedule C line, takes the deductible share and shows what it puts back.