travel expenses gothenburg

• Travel Planning Guide

Travel Budget for Gothenburg Visit Gothenburg on a Budget or Travel in Style

• Gothenburg Costs

• Gothenburg Hotel Prices
• Best Luxury Hotels in Gothenburg
• Best Family-Friendly Hotels in Gothenburg
• Best Cheap Hotels in Gothenburg
• Best Romantic Hotels for Couples in Gothenburg
• Best Hotels for First Time Visitors in Gothenburg
• Best Hotels for One Night in Gothenburg
• Best Pet-Friendly Hotels in Gothenburg
• Best Hotels for a Weekend Getaway in Gothenburg
• Best Hotels for One Week in Gothenburg
• Is Gothenburg Expensive?
• How much does a trip to Gothenburg cost?
• Sweden Costs
• How much does it cost to travel to Gothenburg? (Average Daily Cost)
• Gothenburg trip costs: one week, two weeks, one month

Is Gothenburg expensive to visit?

• How much do I need for a trip to Gothenburg?
• Accommodation, Food, Entertainment, and Transportation Costs
• Travel Guide

How much does it cost to travel to Gothenburg?

You should plan to spend around $100 (kr1,060) per day on your vacation in Gothenburg. This is the average daily price based on the expenses of other visitors.

Past travelers have spent, on average for one day:

• $39 (kr415) on meals
• $19 (kr199) on local transportation
• $82 (kr869) on hotels

A one week trip to Gothenburg for two people costs, on average, $1,404 (kr14,834) . This includes accommodation, food, local transportation, and sightseeing.

All of these average travel prices have been collected from other travelers to help you plan your own travel budget.

• Travel Style: All Budget (Cheap) Mid-Range Luxury (High-End)
• Average Daily Cost Per person, per day $ 100 kr 1,060
• One Week Per person $ 702 kr 7,417
• 2 Weeks Per person $ 1,404 kr 14,834
• One Month Per person $ 3,008 kr 31,788
• One Week For a couple $ 1,404 kr 14,834
• 2 Weeks For a couple $ 2,807 kr 29,669
• One Month For a couple $ 6,016 kr 63,576

How much does a one week, two week, or one month trip to Gothenburg cost?

A one week trip to Gothenburg usually costs around $702 (kr7,417) for one person and $1,404 (kr14,834) for two people. This includes accommodation, food, local transportation, and sightseeing.

A two week trip to Gothenburg on average costs around $1,404 (kr14,834) for one person and $2,807 (kr29,669) for two people. This cost includes accommodation, food, local transportation, and sightseeing.

Please note, prices can vary based on your travel style, speed, and other variables. If you're traveling as a family of three or four people, the price per person often goes down because kid's tickets are cheaper and hotel rooms can be shared. If you travel slower over a longer period of time then your daily budget will also go down. Two people traveling together for one month in Gothenburg will often have a lower daily budget per person than one person traveling alone for one week.

A one month trip to Gothenburg on average costs around $3,008 (kr31,788) for one person and $6,016 (kr63,576) for two people. The more places you visit, the higher the daily price will become due to increased transportation costs.

Independent Travel

Traveling Independently to Gothenburg has many benefits including affordabilty, freedom, flexibility, and the opportunity to control your own experiences.

All of the travel costs below are based on the experiences of other independent travelers.

Prices in Gothenburg are reasonable and comparable to your average travel destination. Hotels, food, and sightseeing are generally within normal price ranges.

Within Europe, which is known to be an expensive region, Gothenburg is a reasonably affordable destination compared to other places. It is in the top 25% of cities in Europe for its affordability. You can find more affordable cities such as Novi Sad, but there are also more expensive cities, such as Avignon.

For more details, and to find out if it's within your travel budget, see Is Gothenburg Expensive?

How much money do I need for a trip to Gothenburg?

The average Gothenburg trip cost is broken down by category here for independent travelers. All of these Gothenburg travel prices are calculated from the budgets of real travelers.

Accommodation Budget in Gothenburg

Average daily costs.

Calculated from travelers like you

The average price paid for one person for accommodation in Gothenburg is $41 (kr434). For two people sharing a typical double-occupancy hotel room, the average price paid for a hotel room in Gothenburg is $82 (kr869). This cost is from the reported spending of actual travelers.

• Accommodation 1 Hotel or hostel for one person $ 41 kr 434
• Accommodation 1 Typical double-occupancy room $ 82 kr 869

Hotel Prices in Gothenburg

Looking for a hotel in Gothenburg? Prices vary by location, date, season, and the level of luxury. See below for options.

Find the best hotel for your travel style.

Actual Hotel Prices The average hotel room price in Gothenburg based on data provided by Kayak for actual hotel rooms is $90. (Prices in U.S. Dollars, before taxes & fees.)

Kayak helps you find the best prices for hotels, flights, and rental cars for destinations around the world.

Recommended Properties

• Hotel Royal Gothenburg Budget Hotel - Kayak $ 94
• Dorsia Hotel & Restaurant Luxury Hotel - Kayak $ 207

Transportation Budget in Gothenburg

The cost of a taxi ride in Gothenburg is significantly more than public transportation. On average, past travelers have spent $19 (kr199) per person, per day, on local transportation in Gothenburg.

• Transportation 1 Taxis, local buses, subway, etc. $ 19 kr 199

Recommended Services

• Umea Private Transfer from Umea city centre to Umea airport Viator $ 147
• Goteborg Landvetter Airport (GOT) to Goteborg City - Round-Trip Private Transfer Viator $ 110

Flights to Gothenburg

Rental cars in gothenburg, food budget in gothenburg.

While meal prices in Gothenburg can vary, the average cost of food in Gothenburg is $39 (kr415) per day. Based on the spending habits of previous travelers, when dining out an average meal in Gothenburg should cost around $16 (kr166) per person. Breakfast prices are usually a little cheaper than lunch or dinner. The price of food in sit-down restaurants in Gothenburg is often higher than fast food prices or street food prices.

• Food 2 Meals for one day $ 39 kr 415

Entertainment Budget in Gothenburg

Entertainment and activities in Gothenburg typically cost an average of $16 (kr168) per person, per day based on the spending of previous travelers. This includes fees paid for admission tickets to museums and attractions, day tours, and other sightseeing expenses.

• Entertainment 1 Entrance tickets, shows, etc. $ 16 kr 168

The Go City Gothenburg Pass offers great discounts on attractions in Gothenburg. With the Go City Explorer pass, you can choose to visit specific sights and attractions at a discount. Or, you can visit as many included attractions as you like with a multi-day All-Inclusive Pass. The average visitor saves 30% off of the regular admission prices.

Recommended Activities

• Bike Tour Gothenburg, Guided Bicycle Tours Viator $ 115
• Historical Walking Tour in Restaurant and Bars in Central City Viator $ 43

Alcohol Budget in Gothenburg

The average person spends about $21 (kr221) on alcoholic beverages in Gothenburg per day. The more you spend on alcohol, the more fun you might be having despite your higher budget.

• Alcohol 2 Drinks for one day $ 21 kr 221

Related Articles

Gothenburg on a budget.

Neighborhoods

Food and dining, transportation, more related articles.

We've been gathering travel costs from tens of thousands of actual travelers since 2010, and we use the data to calculate average daily travel costs for destinations around the world. We also systematically analyze the prices of hotels, hostels, and tours from travel providers such as Kayak, HostelWorld, TourRadar, Viator, and others. This combination of expenses from actual travelers, combined with pricing data from major travel companies, gives us a uniqe insight into the overall cost of travel for thousands of cities in countries around the world. You can see more here: How it Works .

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The Cost of Traveling Sweden

Sweden is one of the most beautiful destinations in the world. I fell in love with it so much, I ended up moving there for a summer.

But it’s also one of the most expensive places to visit.

Most backpackers and budget travelers skip Sweden (and Scandinavia in general) because of its cost. If they do visit, they usually just pop into Stockholm for a couple of days before retreating to more affordable destinations.

That’s understandable but also unfortunate because Sweden has a lot to offer.

While the country is expensive, there are plenty of ways to save money and visit on a budget .

Here’s a summary of one of my trips, what I spent (as well as updated costs/prices) to help you plan your trip, and ways to save money. Because it’s definitely possible to go to Sweden without breaking the bank — you just need to get creative.  

How much did I spend?

I was in Sweden for 19 days, and I spent a total of 11,357 SEK (Swedish kronor) or $1,892.83 USD — roughly $100 USD per day (the exchange rate was about 6 SEK to 1 USD; it varies and now stands around 9 or 10 to $1 USD). The numbers break down this way:

• Accommodation: 2,320 SEK
• Food: 2,289 SEK
• Alcohol: 3,072 SEK
• Transportation: 1,898 SEK
• Attractions: 100 SEK
• Phone: 549 SEK
• Miscellaneous 1,129 SEK

Total: 11,537 SEK

My spending was pretty high for one simple reason: I went out a lot. My friends in Stockholm took me out most nights, so a large portion of my budget went toward that.

When every beer you have is 54 SEK ($9 USD), even having only two or three really adds up. (I should also note that most clubs have entrance fees, so about 500 SEK of my “alcohol” budget went to that.)

Moreover, while I ate cheaply, I only cooked my own meals three times during my trip. Cooking would have lowered my costs significantly, but friends were always taking me places to eat.

Lastly, I also stayed with friends for most of my trip. Had I paid for accommodation every night, my accommodation costs would have risen a lot more.  

How much do you need?

If you stick to free or cheap activities, like enjoying nature and taking free walking tours, you can keep your daily spending low without missing out.

Moreover, if you Couchsurf or camp, skip the alcohol, and cook all or most of your meals, you can lower this even further!

To help you plan your trip, here are some typical prices in Sweden:

• Hostel dorm: 250 SEK<
• Camping & national parks: Free
• Casual restaurant meal: 125–250 SEK
• Cheap restaurant meal: 75-100 SEK
• Pizza: 65-99 SEK
• Cheap hot dogs and sausages: 20-35 SEK
• Fast-food combo: 85 SEK
• Beer: 65 SEK
• Bottled water: 25 SEK<
• Stockholm transit: 38 SEK one-way, 160 SEK for a 24-hour pass, 415 SEK for a 7-day pass
• Bike rentals: 200-250 SEK per day
• Ferry to Gotland: 295 SEK (one-way)
• Stockholm-Gothenburg train: 185-330 SEK (one-way)
• Museums: 80-195 SEK
• Liseberg (theme park): 95 SEK

If you’re on a backpacker budget, you’ll need around $80 USD per day for food, accommodation, and some cheap activities. If you camp, skip the booze, or Couchsurf you can lower this quite a bit.

If you’re a mid-range traveler looking to stay in a Airbnb or hotel, eat out for most meals, go out a few times, and visit some attractions, you’ll want to budget around $175 USD per day.  

Budget Tips for Sweden

But if staying with strangers or cooking isn’t your thing, here are some other ways to save money:

1. Drink beer – Alcohol isn’t cheap in Sweden, as it’s heavily taxed. However, beer is quite cheap. If you stick to beer, you can save yourself a lot of money when you go to the bars.

Additionally, you can buy your own alcohol from Systembolaget (the government-run liquor store chain), which will be much cheaper than buying drinks at the bar or club.

2. Avoid clubs – Most clubs have a cover 200 SEK (or more). Don’t waste your money!

3. Limit how often you eat out – Eating out is very expensive, especially at sit-down restaurants. If you want to eat out without spending a lot of money , stick to Thai, Middle Eastern, and pizza places.

4. Refill your water – The tap water here is some of the cleanest in the world, so bring a reusable water bottle so you can ditch the single-use plastic and save money in the process. LifeStraw is my go-to bottle, since it has a built-in filter to ensure your water is always clean and safe.

5. Book in advance – Booking trains or buses 3-4 weeks in advance can get you around 40–50% off the price. Last-minute tickets are always super expensive, so don’t leave your purchase to the last minute.

The cheapest train company is MTR, while Flixbus will have the cheapest prices for buses.

6. Buy a rail pass – If you plan to do a lot of traveling around, buy a rail pass before you get to the country. You’ll end up saving a few hundred dollars off the high cost of travel.

This can be a good alternative to booking in advance if you’re like me and plan everything at the last minute.

7. Purchase a Stockholm Card – This pass gives you access to the city’s public transportation system and free entrance to 99% of the museums and canal tours, over 60 attractions. It’s well worth the money and will definitely save you a lot more than it costs if you plan to see a lot of sites while in Stockholm . It is 669 SEK for a one-day pass or 1,569 SEK for a five-day pass (which is a much better deal).

8. Get a metro card – If you don’t plan to get the Stockholm Card, make sure you get a week’s metro pass. At 415 SEK for a week’s worth of public transportation, it’s a better deal than paying per ticket (Göteborg and Malmö also offer multiday passes)

9. Avoid taxis – Public transportation is excellent in Sweden. With a little planning, you can avoid the overpriced taxis, as they will ruin your budget in a flash.

10. Enjoy the free outdoors – Hiking and camping are free in Sweden. You can pretty much pitch a tent anywhere, thanks to the country’s Freedom to Roam laws. If you’re an avid outdoorsy person, that means you can pay virtually nothing for accommodation.

11. Stick to buffets – Lunch is the best time to eat out in Sweden. Buffets and restaurants have set meals for around 105 SEK. It’s the best deal you can find and one utilized a lot by locals. (Don’t miss Hermitage in Stockholm for a cozy, home-cooked meal!)

12. Take a free walking tour – Free Tour Stockholm runs the best walking tour in the city. It covers all the highlights and lasts around two hours, so you can see everything on a budget. Just remember to tip your guide at the end!

13. Visit the free museums – The National Museum, the History Museum, and the Medieval Museum in Stockholm are free to enter, as is the Natural History Museum in Göteborg . Many museums are also free to students and people under 20, so be sure to ask if there are discounts!

Like the rest of Scandinavia, Sweden isn’t the most budget-friendly destination. But it has so much to offer, including some of the most beautiful landscapes in Europe , that you really shouldn’t pass it up.

Get Your In-Depth Budget Guide to Europe!

My detailed 200+ page guidebook is made for budget travelers like you! It cuts out the fluff found in other guides and gets straight to the practical information you need to travel while in Europe. It has suggested itineraries, budgets, ways to save money, on and off the beaten path things to see and do, non-touristy restaurants, markets, bars, safety tips, and much more! Click here to learn more and get your copy today.

Book Your Trip to Sweden: Logistical Tips and Tricks

Book Your Flight Use Skyscanner to find a cheap flight. It is my favorite search engine because it searches websites and airlines around the globe, so you always know no stone is being left unturned!

Book Your Accommodation You can book your hostel with Hostelworld as it has the biggest inventory and best deals. If you want to stay somewhere other than a hostel, use Booking.com as it consistently returns the cheapest rates for guesthouses and hotels.

If you’re looking for more places to stay, here for my favorite hostels in Stockholm .

If you’re wondering what part of town to stay in, here’s my neighborhood breakdown of Stockholm .

Don’t Forget Travel Insurance Travel insurance will protect you against illness, injury, theft, and cancellations. It’s comprehensive protection in case anything goes wrong. I never go on a trip without it, as I’ve had to use it many times in the past. My favorite companies that offer the best service and value are:

• Safety Wing (for everyone below 70)
• Insure My Trip (for those 70 and over)
• Medjet (for additional evacuation coverage)

Looking for the Best Companies to Save Money With? Check out my resource page for the best companies to use when you travel. I list all the ones I use to save money when I’m on the road. They will save you money too.

Want More Information on Sweden? Be sure to visit our robust destination guide on Sweden  for even more planning tips!

Got a comment on this article? Join the conversation on Facebook , Instagram , or Twitter and share your thoughts!

Disclosure: Please note that some of the links above may be affiliate links, and at no additional cost to you, I earn a commission if you make a purchase. I recommend only products and companies I use and the income goes to keeping the site community supported and ad free.

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First-timer's guide to Gothenburg, Sweden

Nov 30, 2017 • 6 min read

The central canal (Stora Hamnkanalen) through downtown Gothenburg.

Gothenburg is Scandinavia’s largest port and sometimes lovingly referred to as Sweden’s ‘second city’. It’s best known for producing Volvos, but over the last couple of decades it has managed to reinvent itself as a modern travel destination.

Nowadays, cutting-edge design has replaced industrial grit in Gothenburg’s formerly run-down neighbourhoods. Warehouses and industrial buildings have been turned into art galleries, Michelin-starred restaurants grace the local dining scene, and independent coffee shops dot the city. Add a lively night scene and a string of peaceful islands right on its doorstep, and it’s easy to understand why Gothenburg is giving Stockholm a run for its money.

Welcome to the neighbourhood

Gothenburg is made up of a number of distinct neighbourhoods, so it helps to get your bearings early on. Its historic city centre is separated from the rest of town by a jagged moat. Vasastan is where you’ll find most of the art galleries. Gothenburg’s most important museums are found off Avenyn, the city’s main boulevard.

Trendy Magasingatan is the top spot for Swedish fashion brands, while the streets around Järntorget are filled with increasingly hip and ethnically diverse eateries. Of the city’s formerly hard-luck nooks, none have seen greater transformation than Haga, one Gothenburg’s oldest districts. Its cobbled streets are now lined with quirky shops and cafes and renovated wooden landshövdingehus houses.

Bordering Haga to the west is Linné; independent designer shops and al fresco patios are found all along Linnégatan boulevard. The adjoining ‘long streets’, such as Andra Långgatan have held onto their classic watering holes, which remain pleasantly down to earth.

Frihamnen, Gothenburg’s innermost harbour and port area, is at the forefront of the city’s rebirth. Partially derelict since 2000, it is being turned into Jubileumsparken – a new leisure park that will be a major part of Gothenburg’s 400 th anniversary in 2021. Its features will include a man-made beach, a floating pool and a spectacular sauna, designed by the award-winning architect group Raumlaborberlin.

Art and design

Stockholm gets headlines for its all-enveloping design scene, but Gothenburg is no lightweight. The city boasts a treasure trove of trendy interior design shops in a compact area in the city centre. Places like Artilleriett/Artilleriet Kitchen, Rum 21, Floramor & Krukatös and many more make for an unbeatable day of décor inspiration.

For contemporary Scandinavian art, it’s hard to beat Galleri Ferm , Galleri Thomassen and Galleri Nils Åberg . Putting a defunct power station to good use, Röda Sten art centre is the city’s top alternative art venue, staging everything from edgy Swedish photography exhibitions to live music nights. And though it’s currently closed for renovation through the fall of 2018, the Röhsska Museum is the best design and applied arts museum in Sweden.

Cutting-edge architecture is also part of Gothenburg’s appeal. Kuggen (Lindholmplatsen), resembling a red Colosseum, is a marvel of green engineering, while the distinctive red-and-white skyscraper Göteborgs-Utkiken (a.k.a. The Lipstick) towers over the harbour and offers tremendous views from the top.

City of culture

As Volvo’s home of manufacturing, Gothenburg has an enduring relationship with the car company. Visitors can both take a tour of the car factory itself and immerse themselves in all things Volvo-related at the Volvo Museum . But there is much more to the city than car culture, including several world-class museums.

Science and technology meet the rainforest at the incredible Universeum . Meanwhile, the Konstmuseum ’s art collection, spanning from the 15 th century to the present day, is one of the finest in Europe. Stadsmuseum is the only place in Sweden where you can see an original Viking longship, while Sjöfartsmuseet explores the city’s more recent maritime culture. And once you’re all museum-ed out, head to Liseberg , Sweden’s largest amusement park, to unwind.

Where to eat

Gothenburg’s dining scene is defined by the abundance of fresh fish and seafood, caught off the west coast of Sweden. Swedish oysters, seasonal smoked prawns, grilled crayfish and catch of the day dominate the menu at local institution Restaurang Gabriel inside the legendary Feskekôrka (‘fish church’) fish market.

Other good places to sample the sea’s bounty include Fiskekrogen , locally beloved for over two decades for its shellfish platters, and Strömmingsluckan, a humble food truck at Magasinsgatan 17, serving nothing but freshly grilled herring with mash and lingonberries. The creative, seasonal menu at Michelin-stared Sjömagasinet focuses heavily on seafood, as do the multi-course tasting menus of its Michelin-anointed brethren, Koka and Thörnströms kök .

Seafood aside, Gothenburg’s diverse dining scene encompasses a multitude of world cuisines, from Thai and Ethiopian to gourmet hot dogs, with numerous chefs championing Sweden’s slow food movement as well. And if you’re looking to meet local foodies, visit the splendid Saluhallen (‘The Market Hall’) with some 40 delis and restaurants.

Bring on the night

From beer halls and wine bars to nightclubs and live music, Gothenburg takes its nightlife seriously. Neither has it escaped the craft beer explosion, with some of the bars and brewpubs found along Andra and Tredje Långgatan. Haket Pub represents most of the local microbreweries, Noba Nordic Bar , branches out into Norwegian, Danish and Icelandic brews, while creaky Ölhallen 7:an (Kungstorget 7) has been serving pints since 1900.

Mexican-brothel-inspired Puta Madre ’s cocktails are as enticing as its crazy décor, while tiny Basque bar Juan Font pairs carefully selected wines with tapas. Going strong for years, Nefertiti is both a legendary jazz club and one of the city’s liveliest dance floors, while Lounge(s) has something for everyone on one of its many floors. For the underground music scene, check out illegalground.com to see what’s happening.

Island escape

If you get tired of the hustle and bustle of the city, catch tram 11 to Saltholmen boat terminal and take a boat to the southern archipelago – nine peaceful, car-free islands. Carved of granite and sparsely covered with greenery, they are ideal for long walks, bicycle rides, exploring villages and smokehouses or just sunbathing on the rocks. Brännö, Styrsö and Vrångö have guesthouses. Vrångö also has good swimming spots, as does tiny Vinga.

Practicalities

Gothenburg Airport is served by flights from numerous European cities, including London, Frankfurt, Munich, Helsinki, Amsterdam, Brussels, Copenhagen, Stockholm, Malaga, Paris, Prague and Istanbul. The city’s also reachable by train from Stockholm or Copenhagen (those rides are about three hours).

If you’re planning on doing a lot of sightseeing, it can be worth getting the Göteborg City Card, which gives you free entry to many attractions and includes bus, tram and boat travel. There’s a new Gothenburg Pass card available from 1 January 2018, though it doesn’t include public transportation.

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Gothenburg prices guide. how much does a trip to gothenburg cost the estimated travel expenses for food, public transport, attractions entrance and accommodation..

Currency in Gothenburg is Swedish Krona

If you are travelling alone to gothenburg, depending on your expectations, you will pay for an overnight stay from 52 usd (557 sek) for a hostel to 187 usd (2,000 sek) for a luxury hotel., the other daily costs you have to pay when travelling to gothenburg are:.

• Food 11 USD (114 SEK)
• Meals in restaurants 18 USD (197 SEK)
• Bottled water 1.40 USD (15 SEK)
• Local transportation 13 USD (140 SEK)
• Entrance tickets 42 USD (450 SEK)
• Alcoholic beverages 4.90 USD (52 SEK)

As you can see - a stay for a few days in Gothenburg can cost 350 USD (3,700 SEK) or 1,100 USD (12,000 SEK) , depending on whether you are a frugal tourist or you are planning to spend a luxurious holiday in Gothenburg.

How much Swedish Krona should I have for one week in Gothenburg?

If you want to spend a week in Gothenburg the cost of your stay will be:

• 817 USD (8,700 SEK) - a cheap stay for 7 days in Gothenburg
• 783 USD (8,400 SEK) - a budget travel for 7 days in Gothenburg
• 1,300 USD (14,000 SEK) for a one week of comfortable stay in Gothenburg
• 2,700 USD (30,000 SEK) for a week of luxury holidays in Gothenburg

How much money do I need per day to stay in Gothenburg?

If you are travelling alone to Gothenburg, 110 USD a day should be enough. If you choose a hotel for your stay in Gothenburg, the price will rise to 110 USD. A couple will have to pay around 200 USD for one day in Gothenburg. A family with two children should have 340 USD for one day stay in Gothenburg.

How to visit Gothenburg on a low budget? How to travel Gothenburg cheaply? How to save money while travelling in Gothenburg?

In order not to exceed reasonable expenses during a trip to Gothenburg, which we estimate at 112 USD (1,200 SEK) for a one day, you must comply with the following rules:

• Choose to stay in a hostel (52 USD (557 SEK) ) or in a cheap hotel (25 USD (273 SEK) ).
• Use public transport. The price for a one-way ticket is 3.30 USD (35 SEK) and for a monthly pass 76 USD (815 SEK) .
• Make your own breakfast and own dinner. Daily shopping cost in the shop is around 11 USD (114 SEK) in Gothenburg.
• Choose restaurants outside the city centre and close to tourist attractions. Meal in a cheap restaurant cost around 11 USD (120 SEK) in Gothenburg. McMeal at McDonalds (or equivalent meal in other fastfood restaurant) costs approximately 8.90 USD (95 SEK) .

Car-related costs are mainly fuel, road tolls and parking fees. Of course, the price depends on the purpose of the journey and energy efficiency of a vehicle.

In Gothenburg, you will pay for the fuel accordingly:

• Petrol price in Gothenburg is around: 2.00 USD (21 SEK)
• Diesel fuel price in Gothenburg is around: 1.90 USD (20 SEK)
• 1kg sausage: 20 USD (210 SEK)
• 0,5 kg bread: 2.50 USD (26 SEK)
• 10 eggs: 3.30 USD (35 SEK)
• 1kg cheese: 9.60 USD (104 SEK)
• 1 liter milk: 1.40 USD (15 SEK)
• 1 kg apples: 2.60 USD (28 SEK)
• Bottle of local beer (0,5 liter): 6.10 USD (65 SEK)

What is most famous in Gothenburg? How much does an average entrance to travel attractions in Gothenburg cost?

The most important tourist attractions in gothenburg that we recommend:, the museums worth a visit in gothenburg:, on warmer days, we recommend walking in parks in gothenburg. below is a list of the largest and most interesting parks in gothenburg. parks in gothenburg:, alcohol prices in gothenburg, gothenburg - whisky prices comparison, gothenburg - rum prices comparison, gothenburg - vodka prices comparison, gothenburg - gin prices comparison, view map of hotels and accommodation.

ProfilHotels Opera

Hotel Pigalle

Gothenburg city break: a travel guide to Sweden’s second biggest city

Gothenburg, Sweden’s second-largest city, is always an excellent idea for a city break or a long weekend. Despite having less than half a million inhabitants, there’s a variety of things to do, see and enjoy in the city. Its proximity to the sea and the numerous attractions guarantee a great escape from daily life. Therefore, in this Gothenburg city break guide , you’ll see how you can make the most out of a visit to Gothenburg for two, three, or four days.

Specifically, you’ll read the best things to do in Gothenburg (Swedish: Göteborg ) and some activities outside of town. Moreover, I’ll share the best hotels in Gothenburg and offer some budget and food tips. Last but not least, you’ll see the photos I took and a short 4K travel video. So, simply navigate through the sections of this article and find everything you need to know for your vacation.

Let’s start.

Table of Contents

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Gothenburg city break: how to reach it

Located on Sweden’s west coast, Gothenburg lies at the mouth of a beautiful archipelago. Gothenburg is home to an international airport called Landvetter , and for a city its size, the airport receives quite some international traffic. Moreover, since the city has become one of the most popular destinations for city breaks in Scandinavia, Gothenburg sees an increasing number of flights on its soil.

That said, you can reach the city with direct flights from the majority of Northern European capitals like London, Berlin, or Paris. What makes the city even more attractive for a city break is that you’ll need less than two hours from Northern Europe to reach it. Here are some examples:

• A flight from London to Gothenburg takes 1 hour and 50 minutes.
• For a flight between Paris and Gothenburg, you’ll need 2 hours.
• A flight from Berlin to Gothenburg it’s just 1 hour and 25 minutes.

To find the best available flights between your hometown and Gothenburg, I recommend searching at Kiwi. Kiwi is one of the best flight aggregators comparing flights between your city and airports all around the world.

You can search for your flights on Kiwi here .

How to go from Gothenburg airport to the city

A number of private buses operate the route between Landvetter airport and downtown Gothenburg. You can pre-pay for your ticket to and from the airport, and all you have to do is present the ticket in PDF when embarking. The line is well-served, and there are 3 or 4 buses per hour during the day (but fewer at night).

You can book your bus ticket to downtown Gothenburg by heading to the Flygbussarna website . Add your dates and the nearest stop to your hotel and purchase your ticket. A one-way ticket to/from the airport currently costs 119 SEK (~12 euros).

By private transfer

If you don’t want to wait for the bus or prefer a more relaxed journey, you can also pre-book a private transfer. Your guide will pick you up at the arrivals hall and take you to your accommodation. There are a couple of drivers offering their services, and you can prebook the best private transfer here .

The best things to do in Gothenburg, Sweden

Gothenburg is a popular destination all year long. There are plenty of things to do in Gothenburg , no matter what time of the year you visit it. Of course, the summer days are long and the weather nicer, but this doesn’t mean you can’t enjoy the city during the winter or a rainy day. There are plenty of museums and indoor activities to keep you occupied any time of the year.

So, in this section, you’ll find the best things to do in Gothenburg, Sweden.

Take a Fika break

City breaks are ideal for getting a glimpse into local life. Therefore, I’ll start the list of the things to do in Gothenburg with something very local: a Fika break .

Fika in Swedish means something like “pausing the day to enjoy a coffee break with friends.” And while it might sound familiar to you, I can assure you that for the Gothenburgers, it’s important and part of their routine. In Gothenburg, you’ll find some of the most atmospheric Scandinavian cafes, and delicious sweets always accompany the coffee. Especially popular are the cinnamon buns -and in the food section, I’ll share where you can find the biggest ones you ever saw.

Fika is more than a ritual: for the locals is some sort of art and a state of mind. The word’s origin probably derives from Kafi , the word for coffee. Just invert its syllables, and you get fika . So, why not start your Gothenburg city break by immersing straight ahead into one of the most local things? Order a coffee and something sweet, and slow down.

There are loads of cafes to enjoy a fika break (you’ll read more in the following sections). However, if you’d like to learn how to do it properly, there’s a tour with a local you can join. Your guide will explain the art of fika, take you to some cafes, and offer you a tour of the city. You can check the fika tour here .

Don’t miss the Gothenburg Museum of Art

Gothenburg is home to plenty of fascinating museums. If you only have time to see one museum in Gothenburg, this should be the Museum of Art . It is assumed as one of the best museums in Scandinavia, and there’s a reason for that. It hosts many pieces of art, from internationally renowned artists but -most importantly- from Scandinavian ones. The latter is a reason by itself to visit the museum: you’ll discover fascinating artists that you never heard of before.

The museum has six floors, and each is dedicated to different eras. In my opinion, it is one of the best things to see in Gothenburg, and I wrote a separate article about it. You can read my guide to the Gothenburg Museum of Art here , and you can also read about Barbro Östlihn , an artist I discovered in the museum. If you’re an art lover, you can’t miss this museum.

Pro tip : There’s also a guided museum tour, where you’ll learn everything about the works of art. You can prebook the museum tour here .

Other museums in Gothenburg

There’s not enough time to see every museum on a Gothenburg city break. However, if you’re not that much into art, you can pick one of the following museums:

Volvo Museum . Did you know that Volvo, the iconic car company, comes from Gothenburg? There’s even a museum featuring cars and all kinds of info about Volvo. You can learn more about the Volvo Museum here .

Universeum . That’s one of the most important places in the city. Universeum is the science center of Sweden and a place for education. It has numerous halls and exhibitions, and the most impressive is an indoor (!) rainforest. Learn more about the Universeum .

Explore Haga

Haga is Gothenburg’s sweetest neighborhood. It’s the most laid-back hood in town, and people come here to relax and have a cup of coffee ( fika , anyone?). You can find some 19th-century atmosphere in Haga, and that’s not just because of the cafes. The area is full of beautiful wooden houses.

No visit to Gothenburg is complete without a stop at Haga. Established in the 17th century by Queen Christina, Haga was for years a working-class district. Although it feels gentrified nowadays, it still has lots of charm, and it’s one of the nicest walking areas in the city. Apart from the charming atmosphere, you’ll discover local shops (textiles, design, souvenirs, etc.).

If you’d like to learn more about Haga, you can book a small group tour and have a local narrate stories from the district’s past. You can book the Haga tour here .

See Gothenburg from Skansen Kronan

Skansen Kronan is the small fortress that you’ll see in Haga. You’ll have to climb dozens of steps to reach it, but the view from the top is magnificent. You can see a fantastic view of the city, and on a clear day, you can also see the archipelago. The Skansen Kronan has been in use since 1698, and its purpose was to protect the (back then) young city from a Danish invasion.

To get an idea of how Gothenburg grew throughout the centuries, Skansen Kronan was once upon a time on the city’s outskirts. Nowadays, though, you can even call its location downtown.

Gothenburg city fact : Gothenburg was founded in 1621. It’s “just” 400 years old.

Take advantage of the Gothenburg hop-on-hop-off bus

A hop-on-hop-off bus might sound ultra-touristy to some. However, the one running in Gothenburg passes several places of interest, and it’s a good alternative if you enjoy flexibility and freedom of choice. You can buy a 24-hour ticket and embark and disembark at every station.

For people on a Göteborg city break, it’s one of the easiest ways to explore the city. The 24-hour ticket costs currently 24 euros, and you can learn more about the hop-on-hop-off bus here .

Enjoy an hour with the Land & Water Amphibious bus

That’s one of the most original and fun things to do in Gothenburg . If the hop-on-off-bus is nothing for you, there’s a great alternative: an amphibious bus. This is a 10-ton bus transforming into a boat and splashing in the water! The tour lasts one hour, costs 28 euros, and here’s what to expect.

You’ll start from the Stora Teatern in downtown Gothenburg, and from there, you’ll see the statue of Poseidon, the famous Avenyn, the Liseberg amusement park, and a bunch of other attractions. The fun part, though, starts when the surface changes and the bus has to get wet. That’s when the bus transforms into a boat and enters the river. All of a sudden, you’ll be sailing on the river and have beautiful city views.

The activity is safe and fun, and a tour guide will be on board, sharing info about the city. You can book a place on the amphibious bus here .

Stroll around the Garden Society

The Garden Society is a fabulous park in downtown Gothenburg. It’s one of Europe’s best-kept 19th-century parks, and you’ll see -among other things- a Palm House dating back to 1878. During the summertime, you’ll see thousands of beautiful roses in the gardens, while the Palm House host many exotic plants.

Apart from being one of the best walks in downtown Gothenburg, you can also have a picnic with your friends (no alcohol, no dogs), and there’s also a restaurant within the Garden Society.

Feskekörka: the food-church

One of the odd things to see in Gothenburg is the Feskekörka . Don’t be fooled by its exterior: that’s not a church, even if it looks like one. The Feskekörka is an indoor fish market hosted in a building that resembles a gothic church. It dates back to 1874 and is the best place to enjoy fresh fish. You can buy fish, but there’s also a high-quality restaurant inside the Feskekörka. On a sunny day, you can grab a portion of fish or seafood and sit by the river to enjoy your meal.

Enjoy Liseberg

Liseberg is almost a synonym for Gothenburg. The famous amusement park attracts millions of visitors annually and is loved by kids and adults. The hundred-year-old Liseberg has more than 30 different rides, and it also hosts dance halls, music venues, and restaurants. Liseberg has two entrances (Örgrytevägen and Getebergsled), one of the city’s greenest areas.

As you can imagine, you can easily spend an entire day there. Therefore, visit Liseberg and enjoy either the rides or simply a walk in one of the top 10 amusement parks in the world, according to Forbes .

A day out at the Gothenburg archipelago

Enjoying a day out at the Gothenburg archipelago is probably one of the top things to do. However, since this is a full-day excursion, it’s better to do it if you have at least two full days in the city. Otherwise, you might miss pretty much everything mentioned above.

The Gothenburg archipelago features two subcomplexes of islands, the southern and the northern. They are equally beautiful, and you should see as much as possible. Apart from their geographic position, there’s also something more separating them. The Southern Islands are car-free, while the Northern Islands have more inhabitants and you can even bring your car.

Ferries to the Gothenburg archipelago depart from various places in town, and the biggest hubs are Stenpiren and Saltholmen. You can find a map with the routes to the archipelago here .

Where to stay in Gothenburg for a perfect city break

New hotels open up constantly in the city, and since Gothenburg is famous among interior design lovers, you can expect an eclectic mix of accommodations. However, not everything is about top-notch Scandinavian design. On the contrary, some of the city’s most charming hotels are old-fashioned.

Most of the hotels lie around the central train station. You’ll find plenty of four-star hotels (and some 5 stars too) in this area, which is the city’s heart. Another excellent and relatively quieter area for your Gothenburg accommodation is close to Liseberg, the Museum of Contemporary Art, and the famous Avenyn street. This is one of the most traditional areas of downtown Gothenburg, and while you’ll be a twenty-minute walk from the center, you will find lots of charm here.

Finally, as you read earlier on the best things to do in Gothenburg, Haga is probably the most beloved area for travelers. However, the charming neighborhood is preserved by its residents, and you won’t find any hotels in Haga.

Please keep in mind that prices depend on the season: most hotels will cost 50% less if you visit off-season. On the other hand, visiting Gothenburg during the summertime means that everything will be significantly pricier.

So, below you’ll find the best hotels for your Gothenburg city break.

The best hotels in Gothenburg around the train station (city center)

Hotel Royal . That’s hands down one of the most charming hotels in Sweden. I chose Hotel Royal for my Gothenburg city break, so I added it first to this list. Located just a 5-minute walk from Gothenburg Central Train Station, Hotel Royal is an exceptional hotel. Housed in a building dating back to 1852, the hotel has old-fashioned rooms with a charming atmosphere. Moreover, there’s complimentary tea, coffee, and sweets all day long. Book your room at Hotel Royal here .

* Bonus : I wrote an extensive review about the Hotel Royal Gothenburg here .

Dorsia Hotel . That’s one more excellent option for your stay at Gothenburg. Dorsia Hotel is located close to the Central Station and just steps away from the Kungsportsplatsen Tram Stop (where the airport bus also stops). Apart from the luxurious decor and the comfy beds, there’s also a restaurant at Dorsia serving high-quality French cuisine. Book your room at Dorsia Hotel .

Radisson Blu Göteborg . Finally, for lovers of timeless Scandinavian design and luxury, you also have the opportunity to stay at a Radisson. The Radisson Blu Hotel is just a few meters away from the Central Station (and close to Hotel Royal), and apart from the beautiful rooms, it also offers a spa and yoga studio. Access to the gym is free, and some rooms have a Nespresso coffee machine. Last but not least, you’ll find the elegant Atrium restaurant on the ground floor. Book your room at Radisson Blu .

The best hotels in Gothenburg close to Liseberg

Gothia Towers . Located straight opposite the famous Liseberg amusement park and featuring a 23rd-floor bar, Gothia Towers is one of the top Gothenburg accommodations. The rooms are spacious and clean, and you’ll enjoy breathtaking views. Book your room at Gothia Towers .

Hotel Lorensberg . That’s a great family run with cozy rooms and many original paintings on the walls. The hotel also has a sauna and a beautiful garden. If you’re an art lover, that’s the place to stay. See more about Hotel Lorensberg .

Hotell Onyxen . This hotel is situated in a 19th-century building and offers free WiFi and complimentary tea and coffee all day long. Book your room at Hotell Onyxen .

Elite Park Avenue Hotel . This hotel offers typical Swedish rooms on Gothenburg’s main street, Avenyn. It also has a sauna and a popular restaurant. Book your room at Elite Park Avenue Hotel .

The best hotel close to Haga

Göteborgs Mini Hotel . Located in the nearby cozy hood of Majorna, that’s the closest to Haga you can stay right now. That’s a relatively simple hotel, and there’s no en-suite bathroom in the rooms. However, the Mini Hotel is significantly cheaper than other downtown hotels, and if you are after an affordable option, it’s a real bargain. See Göteborgs Mini Hotel .

Please use the interactive map below for all other accommodation options in Gothenburg, Sweden.

How to get around Gothenburg

Gothenburg is a compact city, and you can walk its downtown area in one day. There’s no subway in Gothenburg, but you have two excellent ways to explore everything that Gothenburg has to offer.

Gothenburg by tram

The easiest way around the town is by using the trams. The tram lines are busy throughout the day, and they’ll bring you everywhere in the city. The blue and white trams of Gothenburg are (as you might expect in Scandinavia) very accurate. You can find their routes here , and the ticket costs 35 SEK (approx. 3,5 euros)

Of course, since you’ll be on a Gothenburg city break, you can also consider buying a multi-day ticket for public transport. You won’t probably need anything more than an A-Zone Ticket (there are also AB and ABC tickets). The A-Zone Gothenburg ticket currently costs 115 SEK for one day (approx. 11,5 euros), and for three days (72 hours), it costs 230 SEK (approximately 23 euros).

Gothenburg by bike

Gothenburg is a paradise for cycling. Featuring hundreds of kilometers of bikeways, the city is a dream to cycle around. You can explore downtown Gothenburg by bike, but you can also cycle outside of town. If you’re into cycling, don’t miss the chance to rent a bike and explore the city and -why not- even the region.

There are multiple bike rentals around the town, but you can use a bike-sharing app if you don’t want to deal with expensive rentals. The best option is by NextBike , operated under Styr & Ställ in Sweden. You can pick up a bike from any of the stations around the city and pay as you go. The charge is 20 SEK every thirty minutes (2 euros), but you can’t spend more than 300 SEK per day (30 euros). Therefore, even if you keep the bike for 10 or even 15 hours within the same day, you won’t pay more than 30 euros.

Last but not least, you can leave your bike in the city center wherever you want; therefore, you don’t have to bring it back to the station where you picked it up. However, leaving a bike outside the city center is costly and comes with a surcharge.

Where to eat in Gothenburg

It’s not a surprise that there are plenty of restaurants in Gothenburg. After all, that’s Sweden’s second-biggest city, and your options are countless, spanning between local joints and fancy restaurants. Traditional Swedish cuisine is delicious, and you can also taste various fish dishes. In the shortlist below, you’ll see the places I enjoyed eating in Gothenburg.

Every link in this section will forward you to the restaurant’s location on Google Maps. Therefore, you can bookmark these places and create your Gothenburg city break food itinerary.

Fiskbar 17 . This tiny restaurant doesn’t accept reservations, but it has some of the most delicious fish you can taste in town. Located at the famous Magasinsgatan, Fiskbar 17 is a joint that serves street food-like fish. I enjoyed eating here twice. Ask for the day’s fish -together with a glass of wine, it will cost approx. 35 euros. See Fiskbar 17 on the map .

Atrium (at Radisson) . The Radisson Blu Hotel hosts one of the nicest restaurants in Gothenburg. The interior is spacious, and the food is fantastic. The prices are steep, but the dinner is a culinary experience. A starter, a main course, and a dessert will cost approx. 60 euros together with a drink. See Atrium on the map .

Sjöbaren Haga . On the main street of the beautiful hood, called Haga Nygata, Sjöbaren is the place to eat fish and seafood on this side of town. The prices are between Fiskbar and Atrium, but the food is equally delicious. See Sjöbaren .

2112 . That’s the place to eat burgers in downtown Gothenburg. 2112 has a variety of burgers and offers vegan and vegetarian options too. A burger and a drink will cost you about 25-30 euros. See 2112 .

Da Matteo . That’s one of the most famous coffee places in Gothenburg. It has multiple locations around the city, but the nicest is the one at Victoriapassagen. See Da Matteo here .

Kafe Magasinet . Look no further if you’re searching for the most Instagrammable cafe in Gothenburg. Kafe Magasinet is more than a cafe: it’ll remind you of an old but stylish warehouse; it has lots of plants and serves fantastic coffee and snacks. Hands down one of the best places in the city. See Kafe Magasinet on the map .

Cafe Husaren . Last but not least, Cafe Husaren is a typical fika-place. That’s also where you’ll find the biggest cinnamon buns in the city. Don’t miss it, especially on a sunny day: it’ll have tables and chairs on the street, and you can observe Haga’s life to its fullest. See Cafe Husaren .

How to budget for a relaxed Gothenburg city break

It’s not a surprise that Gothenburg is not the cheapest city break destination in Europe. After all, Scandinavia is Europe’s more expensive region. However, compared to other neighboring cities, Gothenburg feels slightly cheaper. So, let’s break down the costs for a wonderful Gothenburg city break.

Flights . Everything goes here, and it mainly depends on how early you book. You can find very cheap flights if you book in advance: it’s actually not uncommon to find EasyJet or Ryanair itineraries for 50 euros return. So, book your flights in advance to secure a fair price.

Hotels . The hotels in Scandinavia are beautiful but also pricey. Your accommodation (together with the food) will be your main expense during your Gothenburg long weekend or city break. Staying in downtown Gothenburg is, of course, a must if you want to see as much as possible. For a double room in the city center expect to pay anything from 100 euros and up. Even in this price range, the hotels are just a few. The majority of hotels are much pricier.

Food . The food is relatively expensive in Gothenburg. Even if you go for a fast food option, you won’t be able to get food at a very low price. On the other hand, eating in a restaurant -a main dish and a drink- will cost you approximately 30-35 euros. Obviously, if you choose to have a starter and/or a dessert, receiving a 50-60 euros bill shouldn’t surprise you.

Other expenses . Museum entrances, public transportation tickets, or a Gothenburg archipelago excursion won’t be unaffordable. Therefore, for your other expenses, you should calculate European capital standards.

So, how much should I calculate per day for my Gothenburg city break?

Long story short, here’s what I’d calculate on a daily basis for an off-season city break to Gothenburg (and what I also paid).

A double room that costs 100 euros means 50 euros per person per day for two people. For a light lunch and a dinner, it’s logical to spend 50 euros per person. For all other expenses, you should calculate approximately 40 euros per day. This includes a bottle of water, a museum ticket, a rented bike for an hour, a coffee, and a random Swedish souvenir.

Therefore, a solo traveler to Gothenburg should calculate approximately 180-200 euros per day, including accommodation, food, tickets, etc. Subsequently, if you are two people traveling and sharing a room, it’ll be slightly cheaper: calculate approximately 140 euros per person per day.

Finally, if you travel during the high season, I’d say that calculating 50 euros more per day per person sounds reasonable.

Bonus Gothenburg tip: how to quickly convert Swedish krona (SEK) to USD or EUR.

Sweden’s currency is the Swedish krona (SEK). The following tip helped me convert the prices quickly. However, this is just an approximation, and it’s not totally accurate. But, if you don’t want to have constantly a calculator in hand, that’s the quickest way.

So here’s the conversation tip: whenever you see a price in SEK, all you have to do is add a decimal point before the last digit . That said, if something costs, for example, 60 SEK will be close to 6.0 euros or 6.0 USD. Of course, that’s an approximation. The exact cost will be 5,81 EUR or 6,43 USD for the record. But at least you won’t need a calculator every time you see a price.

When it’s the best time to have a city break in Gothenburg?

The winters in Scandinavia tend to be cold and snowy, while in the summertime, the days are long, and the weather is most of the time warm. On the other hand, visiting Gothenburg in winter or early spring will be significantly cheaper than in summer.

Apart from the budget issue, there are also great timeslots throughout the year. For example, Gothenburg hosts several festivals, so you can check if they fit your schedule. Attending a festival would be a great addition to your city break.

Some festival and their dates to keep in mind:

• The International Film Festival . It usually takes place in late January.
• Summerburst music Festival . It takes place in June, at Ullevi Stadium.

Long story short: if Scandinavian prices scare you, visit Gothenburg off-season. On the other hand, if you can afford the cost, visit during the summer and enjoy the long, warm days.

Gothenburg city break: final thoughts

Gothenburg is one of the liveliest and more beautiful cities in Scandinavia. After being overlooked for years, the city started receiving the attention it deserves. There are plenty of things to see and enjoy in Gothenburg, and immersing in the local lifestyle will give you peace of mind. Add the delicious food and the proximity to the sea, and you’ll have a perfect getaway. Spending three or four days in Gothenburg will refill your batteries and show you an aspect of local life.

Enjoy Gothenburg, and don’t forget the fika breaks.

More about Gothenburg:  My Göteborg travelogue , The Göteborg Museum of Art

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Last Updated on July 23, 2022 by George Pavlopoulos

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Cost of living and prices in Gothenburg, prices of food, rent, shopping, etc. 🇸🇪 Updated Jul 2023

Gothenburg is a city located in Northern Europe, specifically in Sweden. It's known for being a port city situated at an elevation of 10 meters above sea level. With a population of over 600,000 people, it's one of the largest cities in Sweden and the region as a whole. Gothenburg is located at 57.70887 latitude and 11.97456 longitude.

As far as the cost of living is concerned, Gothenburg is generally considered to be affordable in comparison to other major European cities. However, prices can be quite high for certain things such as alcohol, dining out, and certain types of imported goods. Fortunately, wages in Sweden tend to be high as well, so many residents find that they are able to comfortably afford the cost of living in Gothenburg.

One of the biggest expenses in Gothenburg is housing, which can be quite pricey especially in certain areas of the city. However, there are also many options for affordable housing, including student housing and communal living arrangements. Transportation is also generally affordable, and the city is known for having an excellent public transportation system. With its high quality of life and affordable cost of living, it's no wonder that Gothenburg is such a popular destination for expats, students, and professionals from around the world.

Cost of Living Estimate in Gothenburg

Total cost of living in Gothenburg for two person with average consumption for one month will be 1683.96 USD , no rent price included. Click here to calculate cost-of-living estimate in Gothenburg

You can calculate cost of living in Gothenburg by changing quantity using input near each good or service. Resulting total will appear in a floating box in the bottom of your screen.

Restaurants prices

If you're traveling to Gothenburg, you'll be pleased to know that the restaurant scene here is diverse and exciting. Whether you're a foodie seeking a fine dining experience or simply looking for a delicious casual meal, there's something for everyone. The city has an abundance of restaurants that serve international cuisines, such as Indian, Italian, Thai, and Mexican, as well as traditional Swedish cuisine. You can easily find vegan and vegetarian options as well. Many restaurants have stunning waterfront views. For those who want to grab a quick bite or enjoy a picnic-style meal, there are food trucks and street vendors all over town.

A popular attraction that many tourists enjoy is a visit to the fish market at Feskekôrka. Here, you'll be able to try some of the finest seafood in Sweden. The market has a variety of vendors that sell everything from lobster and crab to salmon and herring. You can also find a few small restaurants and cafes that offer seafood dishes. Gothenburg has a long history of fishing, and the industry is still thriving today. Eating at the fish market is an experience that's sure to please seafood lovers.

Markets prices

If you're planning a trip to Gothenburg, Sweden, you might be wondering about the market prices in this bustling city. While prices can vary depending on the specific goods or services you're looking for, in general, Gothenburg is known for being a bit pricier than some other popular tourist destinations in Europe. However, it's also a city that's full of unique and high-quality offerings, from delicious seafood to locally-made crafts and souvenirs. So if you're willing to spend a bit more to experience the best of what Gothenburg has to offer, you won't be disappointed!

One thing to keep in mind when it comes to market prices in Gothenburg is that the city is home to a strong economy and a high standard of living. This means that goods and services tend to be priced higher than they might be in other parts of the world, but that you'll also find a wide range of high-quality and innovative offerings. Additionally, the Swedish krona is used as the local currency, which can be a bit confusing if you're used to Euros or other currencies. However, most businesses in Gothenburg will accept credit cards or offer currency exchange services, so you shouldn't have any trouble paying for your purchases while you're exploring this beautiful city.

Transportation prices

Gothenburg, Sweden is a beautiful and vibrant city that offers a variety of transportation options for visitors to explore and enjoy. One of the most popular forms of transportation in Gothenburg is the tram system, which provides easy access to many of the city's top tourist attractions, including the famous Liseberg Amusement Park. The trams are convenient, easy to use, and offer a great way to see the city while traveling between destinations. Visitors can purchase tickets at machines located at the tram stops or through a mobile app, making it a hassle-free option to explore the city.

For those who prefer a more active mode of transportation, Gothenburg also offers a bike-share program that allows visitors to rent bikes and travel around the city at their own pace. The bikes are stationed throughout the city and can easily be rented using an app on your phone. Gothenburg is a bike-friendly city, with dedicated bike lanes and scenic paths that offer a unique perspective of the city. This transportation option is perfect for visitors who prefer to explore the city on their own, while getting some exercise in the process.

Utilities Per Month prices

When it comes to utilities cost in Gothenburg, visitors may find it slightly higher than what they might be used to in their home country. This includes costs such as electricity, water, and heating. However, it's important to note that the quality of the services provided is exceptional. The tap water in Gothenburg is some of the cleanest in the world, and the heating systems are highly efficient. Visitors may also find that many accommodations will include these utility costs within the rental fee, so it's worth checking beforehand to avoid any surprises.

Another important utility cost to consider while visiting Gothenburg is transportation. While the city has an excellent public transportation system, visitors may find it more expensive than they expected. However, there are several options for discounted travel, such as the Gothenburg Pass, which includes free travel on buses, trams, and boats, as well as discounts on attractions and tours. Overall, while utilities costs may be higher in Gothenburg than other places, visitors can rest assured that they are getting high-quality services and can find ways to save money on transportation costs.

Sports And Leisure prices

Gothenburg, Sweden is the perfect destination for sports enthusiasts and lovers of leisurely activities. The city has an abundance of outdoor spaces, including parks, beaches, and nature reserves, ideal for those looking to get active. With 65 km of jogging and bicycle paths, visitors can explore the city on foot or by bike. If you are a water lover, Gothenburg's many canals and harbors provide an opportunity to kayak or paddleboard.

If you prefer watching sports, Gothenburg provides you with plenty of options. Football is by far the most popular sport in the city, with two top-flight clubs battling for supremacy. Hockey and baseball fans will also find facilities that host games throughout the year. Gothenburg is also home to various sports events, including the Gothia Cup, the world's most significant youth football tournament, attracting over 1,700 teams from around the world. Whatever your sporting preference, Gothenburg has plenty to offer, from taking part in games to cheering for your favorite teams.

Salaries And Financing prices

Gothenburg, Sweden is known for its high salaries and strong economy, making it an attractive destination for job seekers and entrepreneurs alike. With a thriving tech and startup scene, the city offers plenty of opportunities for those looking to build their careers or start their own businesses. Financing options are also readily available, with a range of funding programs and venture capital firms supporting entrepreneurs in the region.

For travelers, the high salaries in Gothenburg mean that there is a wide range of high-quality services and amenities available. From luxury hotels to fine dining restaurants, visitors can expect to find top-notch experiences throughout the city. This also means that there are plenty of opportunities to indulge in the local culture and lifestyle, whether that means exploring the city's museums and galleries or enjoying the nightlife scene. Overall, Gothenburg's strong financial standing creates a vibrant and dynamic environment that visitors are sure to enjoy.

Childcare prices

Childcare prices in Gothenburg, Sweden are among the highest in the world. This is particularly true when it comes to schools and kindergartens. Families with young children can expect to pay a significant amount of money each month to ensure that their children are cared for properly. Many families are finding it difficult to afford these costs, which has led to a growing debate over the state of childcare in Gothenburg and Sweden as a whole.

Despite the high prices of childcare in Gothenburg, there is a strong basis of support for families with young children. Many kindergartens and schools offer high-quality care and education, ensuring that children get the best possible start in life. However, the high costs of these services are leading some families to consider alternative options such as staying at home to care for their children or relying on family members for support. Ultimately, childcare prices in Gothenburg are likely to remain a significant challenge for parents and policymakers alike.

Clothing And Shoes prices

Gothenburg, Sweden is a fashion-forward city with a wide range of options for clothing and shoes. Whether you're looking for high-end designer brands or affordable fashion, you're bound to find something that suits your taste and budget. From trendy boutiques to department stores, Gothenburg is a shopping paradise where you can find unique styles and one-of-a-kind pieces. In addition to the many shopping districts throughout the city, Gothenburg also offers a variety of flea markets and second-hand stores where you can score some great deals on vintage clothing and accessories.

If you're looking for the latest trends in clothing and shoes, Gothenburg has plenty of options. Some of the most popular places to shop include Nordstan, the largest shopping center in the city, and Magasinsgatan, a trendy street filled with independent boutiques and cafes. For high-end designer brands, head to Kungsgatan or Avenyn, where you'll find luxury retailers like Louis Vuitton and Prada. If you're on a budget, don't worry - Gothenburg also has plenty of affordable options, including popular fast-fashion chains like H&M and Zara. No matter your style or budget, there's something for everyone in Gothenburg's lively fashion scene.

Rent Per Month prices

If you're planning a visit to Gothenburg, Sweden, there are plenty of options for short-term rentals and stays. From cozy apartments to stylish hotels, you'll find a range of accommodations that suit your budget and preferences. Short-term rentals can be a great option for those who want more space and privacy, while hotels offer convenience and luxury. Whichever option you choose, you'll find plenty of great deals and discounts during off-seasons and holiday periods.

When it comes to prices, there are plenty of great options for budget-conscious travelers in Gothenburg. You can find small apartments or rooms for rent at affordable prices, especially if you're willing to stay a bit further from the city center. If you're looking for something more luxurious, there are plenty of high-end hotels and apartments that offer top-notch amenities and services. Whether you're looking for a cozy, value-packed stay or a luxurious retreat, Gothenburg has something for everyone.

Buy Apartment prices

If you're interested in purchasing real estate in Gothenburg, Sweden, you have a number of options to choose from. There are a variety of properties available, from apartments and townhouses to large villas and estates. Additionally, you can find homes in different neighborhoods throughout the city, each with its own unique character and charm.

The cost of purchasing real estate in Gothenburg can vary depending on a number of factors, including the location of the property, its size and amenities, and the overall state of the local real estate market. Regardless of your budget, however, it's likely that you'll be able to find a home that meets your needs and preferences in this vibrant and dynamic city.

Cost of living in the cities nearby

• Borås, Sweden
• Trollhättan, Sweden
• Varberg, Sweden
• Uddevalla, Sweden
• Smögen, Sweden
• Frederikshavn, Denmark
• Skara, Sweden
• Hjørring, Denmark
• Halmstad, Sweden
• Jönköping, Sweden

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Europe , Gothenburg , Sweden · July 3, 2022

A Weekend in Gothenburg – The Ultimate 2 to 4 Day Itinerary

Gothenburg is the perfect city for a weekend escape, with a lot of great things to see and do cosy cafes for fika, and a beautiful archipelago. If you are visiting Gothenburg for the first time, or a return visitor, there is always something new to enjoy. Having lived in Gothenburg for 2 years, I have put together this 2 to 4 day itinerary for all my friends and family who come to visit it really shows the best for the city! The first two days are set with activities and different areas to explore, while day 3 and 4 of this Gothenburg itinerary are optional! This is the perfect opportunity to take a day trip from Gothenburg and explore the west coast or head into the archipelago. So, without further ado, here is the perfect itinerary for a weekend in Gothenburg.

Please note that this post contains affiliate links meaning that if you make a purchase through the link, I receive a small commission at no additional cost to you. I make sure to only ever promote products and brands I have used and like, and that all links are to trusted websites.

About Gothenburg

Gothenburg is Sweden ’s second-largest city. It is located on the South-West Coast of Sweden, with a large archipelago , filled with inhabited fishing villages and lovely swimming spots! In the summer, Gothenburg is a paradise for exploring the islands and getting a taste of the magic of Swedish summer. In the winter, you will find lots of super cosy cafes and Christmas markets to explore! 

How to travel around Gothenburg

Gothenburg is a city with a great infrastructure. The city is easy to reach, with a private airport bus which takes you directly from Göteborg Landvetter Airport to Nils Eriksson Bus Terminal by Gothenburg Central Station. Alternatively, there are bus and train connections to most major cities, including Stockholm , Malmö, Copenhagen and Oslo.

While in Gothenburg, you can travel around using buses and trams. These run regularly and cover the entire city. You can buy this ticket from Västtrafik , either through the app or by purchasing a physical travel card. The app is the easiest and most cost-effective way to travel. You can either buy individual tickets or a day ticket. The day ticket is definitely worth it if you plan to take several trips. The individual tickets for inner-city travel (zone A) last 90 minutes and cost 35kr. This allows you to travel unlimited journeys within the city for 1 hour and a half.

A Weekend in Gothenburg – 2, 3 or 4 Day Itinerary

Gothenburg itinerary: day 1.

This guide to Gothenburg doesn’t include breakfast or brunch ideas as this is often included in most hotels! But if you want to eat out in the morning then make sure to read this post for Gothenburg’s best brunch spots ! 

Trädgårdsföreningen and Palmhuset

Start the day with a walk through Trädgårdsföreningen. This is the Central Park of Gothenburg, a popular spot for a summer picnic, or a short walk through the winding pathways behind the cafe. Make sure to stop at Palmhuset for a wander around the tropical palms. 

Lunch in Saluhallen

Saluhallen is the biggest food hall in Gothenburg, filled with delis, speciality cheese shops, fishmongers, boutiques cafes and bakeries. There is a great restaurant on the second floor called Kajutan. They serve traditional Swedish food with a bit of a twist, and it is a great experience to sit and watch the market below. 

Saluhallen is closed on Sundays so make sure to visit on another day! 

Kungsparken

Following Saluhall take a walk along the canal through Kungsparken. This is one of the best spots to hang out in the summer. Make sure to stop at Gelateria Göteborg for ice cream on the way past.

Magasinsgatan

Magasinsgatan is a long road that connects the two canals, lined with shops and cafes. The most popular spot on Magasinsgatan is the courtyard where you will find Da Matteo, probably the most popular Gothenburg coffee roasters and cafe. Here there are two cafes, Magasinsgatan, a great place to study with the coffee roasters on the upper level, and Vallgatan, a smaller, cosier cafe. In the summer you can sit outside and enjoy a coffee with a bao bun from Jinx Food Truck (the best in the city!) 

Nearby are the restaurants Hello Monkey, Fiskebar 17, and Tavolo, three of Gothenburg’s best eateries! Make sure to visit Grandpa’s or Artilleriet if you fancy a bit of shopping, or head round to HUMANA Second Hand for one of Gothenburg’s best second-hand shops! Round the corner, you will find Floramor och Krukatös, an incredibly picturesque flower shop with an entrance to Da Matteo Magasinsgatan through the courtyard.

Make sure to read these posts if you want to know more about Gothenburg’s best fika places , the best restaurants , or the best second-hand shops in the city !

Fiskekyrkan

Fiskekyrkan is Gothenburg’s fish market, where fishermen bring their catch of the day to sell at the fish counters. Here you will also find some great prepped food perfect to take on a little day trip from Gothenburg, and two restaurants with great Swedish fish dishes. 

Make sure to add a visit to Haga to your itinerary during your three days in Gothenburg! This is one of the oldest parts of Gothenburg and is known for its cosy cafes and boutiques. 

Haga is where you will find Cafe Husaren, serving the famous giant cinnamon buns. Make sure to visit early if you want a fresh one as they often sell out fast! 

If you’re not a fan of cinnamon buns you will still find some of the best Swedish fika in Gothenburg on this street – make sure to try a Chokladboll or Dammsugare if you want something really traditional! 

Skansen Kronan

Skansen Kronan is one of the two towers built to defend Gothenburg from invasion back in the 17th century. Today it is more of a museum and function centre located on top of a hill that looks out over Haga. The view here is one of the best in Gothenburg, especially at sunset! Make sure to stop off at the cosy little Waffle Cafe on one side of the tower! 

There are a lot of great places for dinner in this area of Gothenburg! You can find all my recommendations in this post on Gothenburg’s best restaurants. 

For now, I will mention Taco’s and Tequila, a really lovely taco restaurant located on Tredje Långgatan. This is a personal favourite and somewhere we visit regularly! Make sure to try the surf and turf taco and their frozen margaritas! If you are eating early, it’s always nice to sit out in the courtyard with a drink from Cafe Magasinet before heading in for dinner! Another great taco restaurant is Mucho Macho located on Övrehusargatan. Here they have great drinks and it is possible to book.

If you are on a budget then one of the best restaurants for dinner is Benne Pasta! Here they serve delicious fresh pasta and have a good selection of sauces! The dishes range from 50-100kr each and are really tasty!

Find the rest of my Gothenburg restaurant recommendations here!

Gothenburg Itinerary: Day 2 

Day 2 of this Gothenburg itinerary takes you to the other side of the city, Lindholmen. There are a few ways to get to Lindholmen, but the best is definitely by ferry! The ferry leaves from Stenpiren and takes around 10 minutes to reach Lindholmspiren. From the ferry, you get a great view of Gothenburg from the water. The other way to get to Lindholmen is to take the bus. You can catch the 52, 16 or X1 from the central station over the bridge. This trip takes around 10 minutes.

When you reach Lindholmen, take a walk around the harbour and across Lindholmsbron. If you want a bit of a walk then head over to Ramberget. It is only a short walk up to Keillers Park, the top of the mountain, where you get a great view of the city and the river.

Lunch at Lindholmen Street Food Market 

If it’s a Saturday then head to Lindholmen Street Food Market. Located inside an old ship hanger, Lindholmen Street Food Market is a themed market experience of sorts, often with a live band playing, a tattoo artist upstairs and a arts and crafts market. 

Every week they have different local restaurants come and prepare 2-3 dishes. At the door, you can buy tickets (around 70kr each) which are then swapped out for food at the different counters! They often have a different theme, so check the website before heading over to know what to expect!

Lunch at Dirty Dough

If you are exploring Lindholmen on any other day of the week then the best lunch spot on this side of the river is definitely Dirty Dough. This is a very cosy Italian restaurant, located on the edge of the harbour with great views back across to the city. On a sunny day, you can sit outside and enjoy the sun. They serve fresh-made pasta, salads and really delicious pizzas!

Slottskogen 

After lunch, take the ferry back into the city centre and head over to Slottskogen. You can either walk or catch the tram from Stenpiren. Slottskogen is the biggest park in Gothenburg and a popular place for locals to meet in the summertime.

At one edge, with Linneplatsen, there is a mini-golf course with a small kiosk, and at the other the barn zoo, a children’s animal park. Here you can find all sorts of animals spread out amongst the parkland, including seals, moose, goats and penguins. 

You can walk around Slottskogen all afternoon, exploring different areas such as Azaleadalen, Lilla Dammen, and the beautiful August Kobb Pond Waterfall. If you fancy a fika stop or a drink then head to Villa Belparc. They have a lovely outdoor seating area with a great view over the park and the small lake.

Botaniska Trädgården

Botaniska Trädgården is Gothenburg’s Botanical Gardens. It is a lovely place for a walk, with different themed gardens which are constantly in bloom throughout the spring and summer. For a good view over the park head up to the top of the little mountain, Klippträdgården, or alternatively, extend you walk to Änggårdsbergen nature reserve behind the park.

End the day enjoying a drink in one of Gothenburg’s cosy bars. A few recommendations are Björns Bar or Wolfgang Vincafé for good wine and charcuterie or The Bishops Arms on Avenyn for a cosy English pub feeling. If you like cocktails then head to Grumman Elvira or Stranger Bar. 

If it’s a warm sunny day and you want somewhere you can sit outside then make sure to try Skansenhof or Tyska Bron Havsbar. For cheap drinks head to any of the bars along Andra Långgatan!

Gothenburg Itinerary: Days 3 and 4

Spend days 3 and/or 4 doing an activity of some sort! Here are a few different things to do in Gothenburg but if you want more make sure to read this post with 70 things to see and do in Gothenburg ! Another option is to take a day trip ; out to an island , up the coast , or to a small nearby town. You can find all Gothenburg day trips here !

Gothenburg Archipelago 

In the summer one of the best things you can do in Gothenburg is to take a ferry out to one of the islands in the Gothenburg archipelago . The ferries go from Saltholmen, the small harbour and swimming spot at the end of tram line 11. The ferries are a great way to island-hop if you want to explore a few islands, or spend the day on one walking through nature, eating at a restaurant, enjoying the Swedish summer feeling and taking a swim! 

If you’re spending three days in Gothenburg in the summer then this is something you have to add to your itinerary! The islands are still lovely at other times of the year, however many of the shops and restaurants are only seasonally open, often from the end of May to the middle of September. 

Two of the more popular islands are Styrsö and Vrångö ! Both are known for their beautiful beaches and small cafes.

Another fun thing to do is take the paddan around the canal. This is an open-air canal boat which does a round-trip guided tour through the canal and into the river. The tour takes 50 minutes and is a lovely way to spend the morning exploring the city in a different way. Tickets cost 220kr per person.

Gothenburg City Museum (Göteborg Stadsmuseet)

One of Gothenburg’s best museums is the Gothenburg City Museum (Göteborg Stadsmuseet). This is located on Norra Hamngatan, just by the canal. The museum is a great way to learn about the history of Gothenburg, from the Vikings, its early time as a harbour town, to now. The museum is open every day except Mondays, from 11-18 and adult tickets cost 60kr. People under the age of 20 and students have free entry!

Visit the island of Vinga

Vinga island is the most westerly island in the archipelago. The island itself is very unique, with a lighthouse that has played a massive role in the protection over the Gothenburg harbour throughout history. The ferry here leaves from Lilla Bommen, meaning you get a very unique tour through the harbour and out into the archipelago.

If you want to know more about this trip – make sure to read my Vinga Lighthouse guide .

If you want a bit of fun then head to Liseberg for the day. This is Gothenburg’s amusement park, filled with rides both for adults and children. The park is always themed, with a reputation for having some of the best Halloween and Christmas festivities. Their Christmas market is known all over Sweden and visitors often come for a weekend in Gothenburg just to experience this magic.

Make sure to read this post if you want to know more about Christmas markets in Gothenburg!

A weekend in Gothenburg – The perfect 3-day itinerary overview

There are so many places to visit and things to do while spending the weekend in Gothenburg that three days is almost never enough! However, what makes this city so special is its slow pace and the cosy cafes, restaurants and bars which populate the streets. So make sure to take it slow and enjoy the city at the pace the locals do, making time to take a fika in the afternoon.

Spending longer in Gothenburg? You might also enjoy these posts!

The Ultimate Marstrand Sweden Island Guide

Åstol – The Most Picturesque Island in West Sweden

Asperö Island: A Great Gothenburg Archipelago Day Trip

The Best 11 Fortresses and Castles near Gothenburg To Visit

The Ultimate Guide to the Gothenburg Christmas Markets (2023)

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Cost of living in Gothenburg, Sweden

Summary of cost of living in gothenburg.

• Family of four estimated monthly costs: 44,572 kr
• Single person estimated monthly costs: 20,516 kr

List of prices in Gothenburg Current as of Apr 2024.

Did you know that ....

• Cost of living in Gothenburg is 64% more expensive than in Georgetown ?
• Cost of living in Gothenburg is 25% cheaper than in Portland, Oregon ?
• Cost of living in Gothenburg is 8% cheaper than in Stockholm ?
• Cost of living in Gothenburg is 30% more expensive than in Dresden ?

Do you live in Gothenburg ? We need your help!

What is the price of

Volkswagen Golf 1.4 TSI 150 CV (or equivalent), with no extras, new

in Gothenburg ?

International Cost of Living Index

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Cost of Living in Gothenburg, Sweden

How much does it cost to live in gothenburg.

Deciding to relocate is not easy and it especially requires a lot of thinking so as to make the right choice about your future place of residence.

No matter whether you have the cheapest paid profession on the planet or your degree enables you earn pretty high amount of money, it is necessary to get acquainted with the possible expenses wherever in the world you go, and especially in Sweden .

Being less expensive than Stockholm and at the same time offering equal opportunities, Gothernburg might be an ideal city for you.

Sweden : Cost of Living by City

Restaurants.

When spending money in restaurants is in question, your personal habits can influence the numbers quite a bit.

Daily eating out would require quite a lot of money, as the meals are not affordable, and having a drink with your meal might double the price of the bill.

Grocery shopping is daily expense which is of utmost importance for a living and purchasing foodstuff at lower prices is possible in huge supermarkets which frequently offer discounts.

Cooking at home is a crucial skill if you want to make your eating expenses affordable.

TRANSPORTATION

After groceries, as the second biggest expense in Gothenburg, there comes the transport.

It is necessary to commute daily, and obtaining a monthly pass would be a wise decision.

Driving here is not advised due to difficulties in maintaining the vehicle and high gasoline prices.

UTILITIES (MONTHLY)

Having in mind that you should support yourself and your family during your staying in Gothenburg, you will need to devote enough money for the services to be paid.

All in all, it can be said that Sweden is not expensive when it comes to utilities, as $100 per month would be enough to pay for them.

SPORTS & LEISURE

If you are interested in sports, you might find the prices of fitness clubs and tennis courts very useful.

Actually, they are quite high, especially a tennis court rent, where one hour of tennis costs almost as whole month exercising in the gym.

CLOTHING & SHOES

The first thing you need to know is that you will need to have sufficient amount of money to cover all the other expenses, and then start thinking about buying some designer clothes here.

The apparel is quite expensive and unaffordable, and if you are a savvy person, you would not buy branded items.

RENT PER MONTH

The biggest expense that you can expect to make every month is for your accommodation here.

It is not as expensive as in Stockholm, but it is still above the national average.

You will be able to save around $300, if you do not mind living out of the city center.

Cost of Living Averages Table for Gothenburg

How does the average person spend their money in gothenburg.

Getting the information about how Gothenburg’s citizens organize their budgets might be helpful for you to know how to navigate your own expenses once you get there.

Providing for the rent and paying it every month has a huge impact on your budget.

It usually takes the third of monthly income, and the rent in Gothenburg is quite high.

However, besides paying for the rent, you will still need to eat, watch a movie, go out and commute to work, which are all additional and very important monthly expenses.

Average Costs Breakdown

Gothenburg: average salary, minimum wage & mortgages.

In order to be able to take care of your monthly living cost, it is necessary to make a plan of your earnings and spendings and devote enough money for the most important things.

What is left can be spent on non-essential items, such as clothing, entertainment and sports.

If you are lucky enough to have a job with the salary above the average, you will manage to cover all the expenses and your living conditions in Gothenburg will be ideal.

Gothenburg Safety Overview

READ THE FULL REPORT: Gothenburg Safety Review

• OVERALL RISK: LOW
• TRANSPORT & TAXIS RISK: MEDIUM
• PICKPOCKETS RISK: MEDIUM
• NATURAL DISASTERS RISK: MEDIUM
• MUGGING RISK: MEDIUM
• TERRORISM RISK: LOW
• SCAMS RISK: MEDIUM
• WOMEN TRAVELERS RISK: LOW

Cost of Living by City in Gothenburg

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Cost of Living Estimator in Gothenburg, Sweden

Currency: EUR USD --- AED AFN ALL AMD ANG AOA AUD AWG AZN BAM BBD BDT BGN BHD BIF BMD BND BOB BRL BSD BTN BWP BYN BZD CAD CDF CHF CLF CLP CNH CNY COP CRC CUC CVE CZK DJF DKK DOP DZD EGP ERN EUR FJD FKP GBP GEL GGP GHS GIP GMD GNF GTQ GYD HKD HNL HRK HTG HUF IDR ILS IMP INR IQD IRR ISK JEP JMD JOD JPY KES KGS KHR KMF KPW KRW KWD KYD KZT LAK LKR LRD LSL LYD MAD MDL MGA MKD MNT MOP MRU MUR MVR MWK MXN MYR MZN NAD NGN NIO NOK NPR NZD OMR PAB PEN PGK PHP PKR PLN PYG QAR RON RSD RUB RWF SAR SBD SCR SDG SEK SGD SHP SLL SOS SRD STD STN SVC SYP SZL THB TJS TMT TND TOP TRY TTD TWD TZS UAH UGX USD UYU UZS VES VND VUV WST XAF XAG XCD XDR XOF XPF YER ZAR ZMW ZWL Sticky Currency

Members of your household:

Eating lunch or dinner in restaurants: 0.0% 2.0% 5.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% of the time

When eating in restaurants, you are choosing inexpensive restaurants: 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% of the time

Drinking Coffee outside of your home: A lot High Moderate Low No

Going out (cinema, nightlife, etc.): none very low (twice per month per household member) low (three times per month per household member) average (once per week per household member) high (twice per week per household member) very high (3-4 times per week per household member)

Smoking (household overall): packs of cigarettes per day

Alcoholic beverages (consume): A lot Moderate Low No

At home, we are eating: Western Asian food

Driving car: A lot Moderate Low No

Taking Taxi: Daily one round trip Two round trips per Week One round trip per Week One round trip per Month No

Paying for public transport tickets: Monthly, All Members Monthly, 2 Family Members Monthly, 1 Family Members On-Demand, around 5 round trips weekly per family member On-Demand, around 4 round trips weekly per family member On-Demand, around 3 round trips weekly per family member On-Demand, around 2 round trips weekly per family member On-Demand, around 1 round trip weekly per family member None

Sport Memberships: All Household Members 1 Household Member 2 Household Members No

Vacation and Travel: Three per year (one week each), relatively expensive Two per year (one week each), relatively expensive Once per year (one week each), relatively expensive Twice per year (one week each), relatively inexpensive Once per year (one week each), relatively inexpensive None

Buying Clothing and Shoes : A Lot Moderate Low

Rent: none Apartment (1 bedroom) in City Centre Apartment (1 bedroom) Outside of Centre Apartment (3 bedrooms) in City Centre Apartment (3 bedrooms) Outside of Centre Sharing a Room in 3 Bedroom apartment City Centre Sharing a Room in 3 Bedroom apartment Outside of Centre Mortgage for 1 bedroom apartment (approximate) Mortgage for 3 bedroom apartment (approximate)

Number of your children going to kindergarten:

Number of your children going to the private school:

* Our estimator doesn't include insurance, health-related expenses, parking fees, or domestic help. It doesn't take into calculations income tax.

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Cost of living

Although Sweden is considered somewhat expensive, your cost of living will in many ways depend on your individual lifestyle. A number of commodities are more costly than the European mean, while others might be cheaper. However, by planning a monthly budget most newcomers find it easy to adjust.

Accommodation in Gothenburg

The cost of accommodation can vary widely throughout Gothenburg. A good way to find housing with a lower rent is being flexible regarding the location and the type of accommodation you are looking for. Kitchens are almost always furnished (with kitchen appliances like fridge, freezer, and stove), but electricity and internet are not normally included in the rent. 

Read more about housing in Gothenburg

Transportation

The company that is responsible for public transport services in and around Gothenburg is called Västtrafik. A monthly Västtrafik pass costs SEK 815. With the pass, you can travel by bus, tram, and ferry within the city limits. There are also affordable passes available if you live outside of Gothenburg and are commuting. 

If you are a student (or under 20 years old), a monthly pass for public transportation within Gothenburg costs SEK 625 ( 835 SEK full price).

About public transportation at Västtrafik's website. 

Gothenburg is a bicycle-friendly city. Riding a bicycle will not only save money but, in some cases, get you faster from one place to another. If you do not want to buy a bicycle, Styr & Ställ is a service which lets you subscribe to bicycles. With a subscription you can borrow bicycles that are placed around the city for a small fee.

Styr & Ställ's website.

Dining out and food

Dining out at restaurants can be somewhat expensive in Sweden. Lunch at a campus restaurant, café, or lunch place can cost SEK 65–115. Dinner starts at about SEK 130, not including drinks. At most restaurants and bars, an inexpensive beer or glass of wine will cost about SEK 70.

If you are a student, many cafés and restaurants offer a student discount, and prices can be significantly lower at events arranged by student unions.

A common practice in Sweden, regardless of whether you work or are a student, is bringing your own boxed lunch from home, as this is a good way to save some money. Almost every break room has at least a couple of microwave ovens available for reheating food. 

Being a new consumer in Sweden 

Online shopping, signing agreements, and paying bills can be tricky in a new country. "Hallå konsument" is a national service with information in many languages about rights and obligations as a consumer in Sweden. 

 Hallå Konsument's webpage.

Take part in the growing circular economy

In many ways, Gothenburg is at the forefront of sustainable consumption and effective use of resources. In the last decade, a huge number of second hand boutiques and initiatives based in lending, borrowing, and giving things have sprung up throughout the city landscape.

About vintage and second-hand shopping on Gothenburg.com

One of the many tools resulting from the convergence of innovation and circular economy is Smarta kartan, or the smart map. This interactive map shows a steadily increasing number of places in the city where you can get, rent, borrow, or give things or services. 

smartakartan.se

Monthly budget for a student

If you are coming to Gothenburg to study and want to calculate your approximate monthly living expenses, here is a guide to help you. Please note that this is an estimate, not an exact number for all students in Gothenburg or Sweden. 

Monthly budget in Swedish krona

When you are a student, it is important to keep a close eye on your monthly expenses. The following estimate can hopefully prove useful and help you get an idea about what you can expect.

Accommodation This will most likely be your biggest expense. The cost of rent can vary a lot and generally, the more central an apartment or a room is, the pricier it will be. Renting a fully furnished or unfurnished accommodation can also influence the rent.  The following estimate can hopefully prove useful and help you get an idea about what you can expect: student housing, single household 4000-7500 SEK student housing and private accommodation, small apartments 6000-10 000 SEK

Telephone and internet The charge for telephone service and internet can vary greatly but count on a monthly cost of at least SEK 300. Usually when you rent an apartment in Sweden, internet access is not included. 

Food Monthly food expenses will naturally depend a lot on how often you eat out, how often you cook your own meals, and so on. Around SEK 3000–4000 would not be unreasonable. The lower estimate assumes you do most of the cooking yourself. Read more under the heading “Dining out and food” above.

Public transportation A monthly pass for public transportation within Gothenburg costs SEK 625  for students. With the pass, you can travel by bus, tram and ferry within the city limits. Read more under the heading “Transportation” above.

Course literature Course literature is, of course, not something you buy every month, but spread out over a year it is not unreasonable to budget for SEK 500 per month. A good suggestion to reduce your costs on course literature is to borrow the books you need from one of the University’s libraries whenever possible.

Clothing, leisure, insurance, care and any other expenses This cost can differ but expect it to total at least SEK 2,000.

Monthly total This brings you monthly total to roughly SEK 10,000–14,000, but do not forget that this is only an estimation.

Cost calculator

Move to Gothenburg has developed a tool that will help you understand your possible cost of living in Sweden. The costs benefit calculator will give you an estimate based on your profession and family situation, calculate daily living costs and showcase your disposable income and benefits. NB: The calculator is intended for PhD students and people with employment (monthly salary) in Sweden. It is not intended to calculate a student budget. Costs benefits calculator

Links for more information

More From Forbes

Expert: here’s what you should do about airline luggage fee increases.

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Sasha Gainullin, CEO of the travel insurance company battleface.

Since the beginning of the year, most of the major U.S. airlines have raised their baggage fees. It now costs an average of $35 to check your bag on a domestic flight.

In the travel industry, charging separately for luggage is called unbundling. And it turns out there are experts who specialize in unbundling and have a deep knowledge of what's happening behind the scenes.

Sasha Gainullin, CEO of the travel insurance company battleface , is one of the world's leading authorities on unbundling. I asked him for his thoughts on the latest airline baggage fee increases — and what passengers should do about it.

Here's our interview.

What do you think of the way airlines have unbundled their product, and specifically luggage fees?

I think unbundling is necessary for any customer-driven industry. But as an airline customer, making things more expensive without transparency is something I generally disagree with. While unbundling allows airlines to become more profitable, they should also be more transparent with customers.

How would you make it more transparent?

In general, airfares are being promoted across multiple comparison sites, and travelers aren't loyal to one specific airline. They will more than likely choose a ticket based on the actual flight cost without factoring in the additional costs that will be presented to them in an online purchase experience.

Best Travel Insurance Companies

Best covid travel insurance plans.

Unbundling ancillary additions like bags, seats and meals potentially lowers the base price for an airline ticket, so there’s an opportunity to present negatively viewed fees into something positive.

Unbundling allows choice and the ability to pay for what you want, which is a positive for the customer. I think they’ve done a good job rolling out “basic economy” seats. There’s definitely a market out there for people who just want cheap airfare without the bells and whistles.

So how would you handle it?

There is so much about airfare costs that the general public doesn’t understand. Why is the J fare more expensive than the L fare? Why does seat 10D cost $85, but seat 11D costs $40?

I'd invest heavily in teams that have a full understanding of the products being offered, including product, data and marketing. Then, through extensive testing, I'd focus on optimizing the e-commerce information architecture to improve customer experience, which in turn leads to loyalty and repeat customers.

Finally, I'd look to using the data obtained to build out AI models to help guide customers by giving them recommendations based on their profile, leading to an exceptional experience, because choice can also be overwhelming when trying to make decisions.

What's your advice to air travelers on dealing with these new fees?

My advice would be to choose what you — and your wallet — feel comfortable with in the most direct route possible.

With travel back to or at times exceeding pre-COVID levels, extra fees don’t seem to be a deal-breaker for customers. The hard reality is that most low-cost airlines have multiple unbundled charges, except for Southwest, which still offers the first two checked bags for free and does not charge any change fees.

Many airlines are also starting to add value items back into the fare. JetBlue is unique in that it does not charge for Wi-Fi, and Delta has recently moved in that direction for domestic flights if you are a member of SkyMiles rewards, which is free to join.

So fly the right airline. Beyond that, what would you do with these fees?

Buy what you need and read each step of the buying process thoroughly. Also, packing light to fit everything into a carry-on and a personal item is important, too. This, of course, will not save you money when flying on an airline like Frontier, which probably has the most unbundled add-ons in the airline industry. This includes paying for a carry-on, or, if you don’t, you’re subjected to boarding the plane last, with limited to no room for overhead storage.

I wanted to ask you about hotels, since they've had some interesting fees, too. You get charged extra for a lot of things now, but perhaps most notably, you often have to pay a mandatory resort fee that covers items like pool towels and free Wi-Fi. Any thoughts on hotel fees?

I don't think mandatory resort fees are a choice. Therefore, they can't be considered unbundling. Although it seems transparent now, it is still an imposed fee and should remain in that category, like taxes.

You've been one of the innovators in unbundling travel insurance. How does the way you've unbundled insurance compare to the way airlines have unbundled their products?

Very similar. Giving choice back to the customer and making it specific to their actual needs and travel type.

The more items you add to your cart, the more expensive your airfare or travel insurance is going to be. I think customers get this by now and are willing to pay for it if it makes sense to them based on what they are looking for.

But you're doing more than just unbundling here — you're doing demand-based pricing, just like the airlines, right?

When you think about the process of buying a seat on a flight, the rates will vary depending on a myriad of factors like day of travel, destination, departure time, plane capacity, or where the seat is on the plane. A short flight may not be worth $80 to sit in a seat with extra legroom. But a six-hour flight may be worth premium economy or business class.

These rating factors are different with travel insurance, but they are similar in that the pricing can vary based on other factors. Our rates are dependent on multiple risk factors, including age of travelers, trip length, benefits selected, and trip cost.

Customization of your travel insurance policy should be based on your destination and the type of trip you’re on. For example, when traveling domestically, many do not need travel medical insurance, so why include that in your policy?

How do you sell travel insurance? How is it different from traditional travel insurance?

The travel insurance industry is extremely fragmented, with several independent parties responsible for technology, underwriting, product creation, customer service, claims, and emergency assistance. Often, none of them speak or connect to each other. Our vision for battleface is to change that and to support the travel insurance industry globally.

We have diversified our distribution channels in a big way since 2022. When we first launched in the U.S., we leaned into a direct-to-customer approach, selling travel insurance to build our brand.

An unbundled approach gave us an opportunity to be transparent about what each benefit costs, allowing customers to weigh the importance of each benefit to purchase — a self-assessment, in a way, while also allowing us to test our theory that unbundling increases the likelihood that customers will buy more travel insurance when presented with choice. Now we’ve taken the same model to our partners, who create their own products that are relevant and make the most sense to their customers.

You have a highly regarded business-to-business product called Robin Assist that provides claims handling and assistance services. So I wanted to ask you about the role of technology in unbundling. Is there a way that technology can make this process better — in other words, to give travelers what they want without making them overpay?

The unbundled philosophy is firmly ingrained in everything we do on the platform, from our travel insurance offerings to our assistance and claims services. Without tech, none of this would be possible.

We’re fortunate to have highly skilled product and engineering teams that helped us build the platform and continually update it for faster and faster feature development releases. This rapid release cycle has allowed us to move into an unbundled platform powering API-led distribution, product creation, policy administration, travel assistance services, and claims automation.

Which extras do you buy when you travel? And how has that changed since the beginning of the year?

It all depends on where I’m traveling and how long my flight is. For longer flights, I would buy Wi-Fi. When selecting my preferred seat, I’d pay extra. In addition, I’ve started to opt for more flexible fares in case of changes and cancellations. I also continue to travel with the same airline as much as possible to take advantage of the extra perks.

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Travel expenses defined.

Members of the Armed Forces.

Main place of business or work.

No main place of business or work.

Factors used to determine tax home.

Tax Home Different From Family Home

Temporary assignment vs. indefinite assignment.

Exception for federal crime investigations or prosecutions.

Determining temporary or indefinite.

Going home on days off.

Probationary work period.

Separating costs.

Travel expenses for another individual.

Business associate.

Bona fide business purpose.

Lavish or extravagant.

50% limit on meals.

Actual Cost

Incidental expenses.

Incidental-expenses-only method.

50% limit may apply.

Who can use the standard meal allowance.

Use of the standard meal allowance for other travel.

Amount of standard meal allowance.

Federal government's fiscal year.

Standard meal allowance for areas outside the continental United States.

Special rate for transportation workers.

Travel for days you depart and return.

Trip Primarily for Business

Trip primarily for personal reasons.

Public transportation.

Private car.

Travel entirely for business.

Travel considered entirely for business.

Exception 1—No substantial control.

Exception 2—Outside United States no more than a week.

Exception 3—Less than 25% of time on personal activities.

Exception 4—Vacation not a major consideration.

Travel allocation rules.

Counting business days.

Transportation day.

Presence required.

Day spent on business.

Certain weekends and holidays.

Nonbusiness activity on the way to or from your business destination.

Nonbusiness activity at, near, or beyond business destination.

Other methods.

Travel Primarily for Personal Reasons

Daily limit on luxury water travel.

Meals and entertainment.

Not separately stated.

Convention agenda.

North American area.

Reasonableness test.

Cruise Ships

Deduction may depend on your type of business.

Exceptions to the Rules

Entertainment events.

Entertainment facilities.

Club dues and membership fees.

Gift or entertainment.

Other rules for meals and entertainment expenses.

Costs to include or exclude.

Application of 50% limit.

When to apply the 50% limit.

Taking turns paying for meals.

1—Expenses treated as compensation.

2—Employee's reimbursed expenses.

3—Self-employed reimbursed expenses.

4—Recreational expenses for employees.

5—Advertising expenses.

6—Sale of meals.

Individuals subject to “hours of service” limits.

Incidental costs.

Exceptions.

• Illustration of transportation expenses.

Temporary work location.

No regular place of work.

Two places of work.

Armed Forces reservists.

Commuting expenses.

Parking fees.

Advertising display on car.

Hauling tools or instruments.

Union members' trips from a union hall.

Office in the home.

Examples of deductible transportation.

Choosing the standard mileage rate.

Standard mileage rate not allowed.

Five or more cars.

Personal property taxes.

Parking fees and tolls.

Sale, trade-in, or other disposition.

Business and personal use.

Employer-provided vehicle.

Interest on car loans.

Taxes paid on your car.

Sales taxes.

Fines and collateral.

Casualty and theft losses.

Depreciation and section 179 deductions.

Car defined.

Qualified nonpersonal use vehicles.

More information.

More than 50% business use requirement.

Limit on the amount of the section 179 deduction.

Limit for sport utility and certain other vehicles.

Limit on total section 179 deduction, special depreciation allowance, and depreciation deduction.

Cost of car.

Basis of car for depreciation.

When to elect.

How to elect.

Revoking an election.

Recapture of section 179 deduction.

Dispositions.

Combined depreciation.

Qualified car.

Election not to claim the special depreciation allowance.

Placed in service.

Car placed in service and disposed of in the same year.

Methods of depreciation.

More-than-50%-use test.

Qualified business use.

Use of your car by another person.

Business use changes.

Use for more than one purpose.

Change from personal to business use.

Unadjusted basis.

Improvements.

Car trade-in.

Effect of trade-in on basis.

Traded car used only for business.

Traded car used partly in business.

Modified Accelerated Cost Recovery System (MACRS).

Recovery period.

Depreciation methods.

MACRS depreciation chart.

Depreciation in future years.

Disposition of car during recovery period.

How to use the 2023 chart.

Trucks and vans.

Car used less than full year.

Reduction for personal use.

Section 179 deduction.

Deductions in years after the recovery period.

Unrecovered basis.

The recovery period.

How to treat unrecovered basis.

• Table 4-1. 2023 MACRS Depreciation Chart      (Use To Figure Depreciation for 2023)

Qualified business use 50% or less in year placed in service.

Qualified business use 50% or less in a later year.

Excess depreciation.

Deductible payments.

Fair market value.

Figuring the inclusion amount.

Leased car changed from business to personal use.

Leased car changed from personal to business use.

Reporting inclusion amounts.

Casualty or theft.

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Depreciation deduction for the year of disposition.

Documentary evidence.

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Timely kept records.

Proving business purpose.

Confidential information.

Exceptional circumstances.

Destroyed records.

Separating expenses.

Combining items.

Car expenses.

Gift expenses.

Allocating total cost.

If your return is examined.

Reimbursed for expenses.

Examples of Records

Self-employed.

Both self-employed and an employee.

Statutory employees.

Reimbursement for personal expenses.

Income-producing property.

Value reported on Form W-2.

Full value included in your income.

Less than full value included in your income.

No reimbursement.

Reimbursement, allowance, or advance.

Reasonable period of time.

Employee meets accountable plan rules.

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Adequate Accounting

Related to employer.

The federal rate.

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High-low rate.

Prorating the standard meal allowance on partial days of travel.

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Fixed and variable rate (FAVR).

Reporting your expenses with a per diem or car allowance.

Allowance less than or equal to the federal rate.

Allowance more than the federal rate.

Travel advance.

Unproven amounts.

Per diem allowance more than federal rate.

Reporting your expenses under a nonaccountable plan.

Adequate accounting.

How to report.

Contractor adequately accounts.

Contractor doesn’t adequately account.

High-low method.

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Federal per diem rate method.

Information on use of cars.

Standard mileage rate.

Actual expenses.

Car rentals.

Transportation expenses.

Employee business expenses other than nonentertainment meals.

Non-entertainment-related meal expenses.

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Reimbursements.

Allocating your reimbursement.

After you complete the form.

Limits on employee business expenses.

1. Limit on meals and entertainment.

2. Limit on total itemized deductions.

Member of a reserve component.

Officials Paid on a Fee Basis

Special rules for married persons.

Where to report.

Impairment-Related Work Expenses of Disabled Employees

Preparing and filing your tax return.

Free options for tax preparation.

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Need someone to prepare your tax return?

Employers can register to use Business Services Online.

IRS social media.

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Access your online account (individual taxpayers only).

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Tax Pro Account.

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What if I can’t pay now?

Filing an amended return.

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Responding to an IRS notice or letter.

Contacting your local TAC.

What Is TAS?

How can you learn about your taxpayer rights, what can tas do for you, how can you reach tas, how else does tas help taxpayers, low income taxpayer clinics (litcs), appendix a-1. inclusion amounts for passenger automobiles first leased in 2018, appendix a-2. inclusion amounts for passenger automobiles first leased in 2019, appendix a-3. inclusion amounts for passenger automobiles first leased in 2020, appendix a-4. inclusion amounts for passenger automobiles first leased in 2021, appendix a-5. inclusion amounts for passenger automobiles first leased in 2022, appendix a-6. inclusion amounts for passenger automobiles first leased in 2023, publication 463 - additional material, publication 463 (2023), travel, gift, and car expenses.

For use in preparing 2023 Returns

Publication 463 - Introductory Material

For the latest information about developments related to Pub. 463, such as legislation enacted after it was published, go to IRS.gov/Pub463 .

Standard mileage rate. For 2023, the standard mileage rate for the cost of operating your car for business use is 65.5 cents ($0.655) per mile. Car expenses and use of the standard mileage rate are explained in chapter 4.

Depreciation limits on cars, trucks, and vans. The first-year limit on the depreciation deduction, special depreciation allowance, and section 179 deduction for vehicles acquired before September 28, 2017, and placed in service during 2023, is $12,200. The first-year limit on depreciation, special depreciation allowance, and section 179 deduction for vehicles acquired after September 27, 2017, and placed in service during 2023 increases to $20,200. If you elect not to claim a special depreciation allowance for a vehicle placed in service in 2023, the amount increases to $12,200. Depreciation limits are explained in chapter 4.

Section 179 deduction. The maximum amount you can elect to deduct for section 179 property (including cars, trucks, and vans) you placed in service in tax years beginning in 2023 is $1,160,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,890,000. Section 179 deduction is explained in chapter 4.Also, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2023 is $28,900.

Temporary deduction of 100% business meals. The 100% deduction on certain business meals expenses as amended under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, and enacted by the Consolidated Appropriations Act, 2021, has expired. Generally, the cost of business meals remains deductible, subject to the 50% limitation. See 50% Limit in chapter 2 for more information.

Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC) . Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 800-THE-LOST (800-843-5678) if you recognize a child.

Per diem rates. Current and prior per diem rates may be found on the U.S. General Services Administration (GSA) website at GSA.gov/travel/plan-book/per-diem-rates .

Introduction

You may be able to deduct the ordinary and necessary business-related expenses you have for:

Non-entertainment-related meals,

Transportation.

This publication explains:

What expenses are deductible,

How to report them on your return,

What records you need to prove your expenses, and

How to treat any expense reimbursements you may receive.

You should read this publication if you are an employee or a sole proprietor who has business-related travel, non-entertainment-related meals, gift, or transportation expenses.

If an employer-provided vehicle was available for your use, you received a fringe benefit. Generally, your employer must include the value of the use or availability of the vehicle in your income. However, there are exceptions if the use of the vehicle qualifies as a working condition fringe benefit (such as the use of a qualified nonpersonal use vehicle).

A working condition fringe benefit is any property or service provided to you by your employer, the cost of which would be allowable as an employee business expense deduction if you had paid for it.

A qualified nonpersonal use vehicle is one that isn’t likely to be used more than minimally for personal purposes because of its design. See Qualified nonpersonal use vehicles under Actual Car Expenses in chapter 4.

For information on how to report your car expenses that your employer didn’t provide or reimburse you for (such as when you pay for gas and maintenance for a car your employer provides), see Vehicle Provided by Your Employer in chapter 6.

Partnerships, corporations, trusts, and employers who reimburse their employees for business expenses should refer to the instructions for their required tax forms, for information on deducting travel, meals, and entertainment expenses.

If you are an employee, you won’t need to read this publication if all of the following are true.

You fully accounted to your employer for your work-related expenses.

You received full reimbursement for your expenses.

Your employer required you to return any excess reimbursement and you did so.

There is no amount shown with a code L in box 12 of your Form W-2, Wage and Tax Statement.

If you perform services as a volunteer worker for a qualified charity, you may be able to deduct some of your costs as a charitable contribution. See Out-of-Pocket Expenses in Giving Services in Pub. 526, Charitable Contributions, for information on the expenses you can deduct.

We welcome your comments about this publication and suggestions for future editions.

You can send us comments through IRS.gov/FormComments . Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or payments to the above address.

If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS Interactive Tax Assistant page at IRS.gov/Help/ITA where you can find topics by using the search feature or viewing the categories listed.

Go to IRS.gov/Forms to download current and prior-year forms, instructions, and publications.

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Useful Items

Publication

946 How To Depreciate Property

Form (and Instructions)

Schedule A (Form 1040) Itemized Deductions

Schedule C (Form 1040) Profit or Loss From Business (Sole Proprietorship)

Schedule F (Form 1040) Profit or Loss From Farming

2106 Employee Business Expenses

4562 Depreciation and Amortization (Including Information on Listed Property)

See How To Get Tax Help for information about getting these publications and forms.

If you temporarily travel away from your tax home, you can use this chapter to determine if you have deductible travel expenses.

This chapter discusses:

Traveling away from home,

Temporary assignment or job, and

What travel expenses are deductible.

For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job.

An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense doesn’t have to be required to be considered necessary.

You will find examples of deductible travel expenses in Table 1-1 .

Traveling Away From Home

You are traveling away from home if:

Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and

You need to sleep or rest to meet the demands of your work while away from home.

You are a railroad conductor. You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. You are considered to be away from home.

You are a truck driver. You leave your terminal and return to it later the same day. You get an hour off at your turnaround point to eat. Because you aren’t off to get necessary sleep and the brief time off isn’t an adequate rest period, you aren’t traveling away from home.

If you are a member of the U.S. Armed Forces on a permanent duty assignment overseas, you aren’t traveling away from home. You can’t deduct your expenses for meals and lodging. You can’t deduct these expenses even if you have to maintain a home in the United States for your family members who aren’t allowed to accompany you overseas. If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Pub. 3, Armed Forces' Tax Guide.

A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home (explained next) aboard the ship for travel expense purposes.

To determine whether you are traveling away from home, you must first determine the location of your tax home.

Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. It includes the entire city or general area in which your business or work is located.

If you have more than one regular place of business, your tax home is your main place of business. See Main place of business or work , later.

If you don’t have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. See No main place of business or work , later.

If you don’t have a regular or main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. As an itinerant, you can’t claim a travel expense deduction because you are never considered to be traveling away from home.

If you have more than one place of work, consider the following when determining which one is your main place of business or work.

The total time you ordinarily spend in each place.

The level of your business activity in each place.

Whether your income from each place is significant or insignificant.

You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Cincinnati is your main place of work because you spend most of your time there and earn most of your income there.

You may have a tax home even if you don’t have a regular or main place of work. Your tax home may be the home where you regularly live.

If you don’t have a regular or main place of business or work, use the following three factors to determine where your tax home is.

You perform part of your business in the area of your main home and use that home for lodging while doing business in the area.

You have living expenses at your main home that you duplicate because your business requires you to be away from that home.

You haven’t abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging.

If you satisfy all three factors, your tax home is the home where you regularly live. If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you can’t deduct travel expenses.

You are single and live in Boston in an apartment you rent. You have worked for your employer in Boston for a number of years. Your employer enrolls you in a 12-month executive training program. You don’t expect to return to work in Boston after you complete your training.

During your training, you don’t do any work in Boston. Instead, you receive classroom and on-the-job training throughout the United States. You keep your apartment in Boston and return to it frequently. You use your apartment to conduct your personal business. You also keep up your community contacts in Boston. When you complete your training, you are transferred to Los Angeles.

You don’t satisfy factor (1) because you didn’t work in Boston. You satisfy factor (2) because you had duplicate living expenses. You also satisfy factor (3) because you didn’t abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Therefore, you have a tax home in Boston.

You are an outside salesperson with a sales territory covering several states. Your employer's main office is in Newark, but you don’t conduct any business there. Your work assignments are temporary, and you have no way of knowing where your future assignments will be located. You have a room in your married sister's house in Dayton. You stay there for one or two weekends a year, but you do no work in the area. You don’t pay your sister for the use of the room.

You don’t satisfy any of the three factors listed earlier. You are an itinerant and have no tax home.

If you (and your family) don’t live at your tax home (defined earlier), you can’t deduct the cost of traveling between your tax home and your family home. You also can’t deduct the cost of meals and lodging while at your tax home. See Example 1 , later.

If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. See Example 2 , later.

You are a truck driver and you and your family live in Tucson. You are employed by a trucking firm that has its terminal in Phoenix. At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. You can’t deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. This is because Phoenix is your tax home.

Your family home is in Pittsburgh, where you work 12 weeks a year. The rest of the year you work for the same employer in Baltimore. In Baltimore, you eat in restaurants and sleep in a rooming house. Your salary is the same whether you are in Pittsburgh or Baltimore.

Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. You can’t deduct any expenses you have for meals and lodging there. However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. You can deduct the cost of your round trip between Baltimore and Pittsburgh. You can also deduct your part of your family's living expenses for non-entertainment-related meals and lodging while you are living and working in Pittsburgh.

Temporary Assignment or Job

You may regularly work at your tax home and also work at another location. It may not be practical to return to your tax home from this other location at the end of each workday.

If your assignment or job away from your main place of work is temporary, your tax home doesn’t change. You are considered to be away from home for the whole period you are away from your main place of work. You can deduct your travel expenses if they otherwise qualify for deduction. Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less.

However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you can’t deduct your travel expenses while there. An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year.

If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called “travel allowances” and you account to your employer for them. You may be able to deduct the cost of relocating to your new tax home as a moving expense. See Pub. 3 for more information.

If you are a federal employee participating in a federal crime investigation or prosecution, you aren’t subject to the 1-year rule. This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year provided you meet the other requirements for deductibility.

For you to qualify, the Attorney General (or their designee) must certify that you are traveling:

For the federal government;

In a temporary duty status; and

To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime.

You must determine whether your assignment is temporary or indefinite when you start work. If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. An assignment or job that is initially temporary may become indefinite due to changed circumstances. A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment.

The following examples illustrate whether an assignment or job is temporary or indefinite.

You are a construction worker. You live and regularly work in Los Angeles. You are a member of a trade union in Los Angeles that helps you get work in the Los Angeles area. Your tax home is Los Angeles. Because of a shortage of work, you took a job on a construction project in Fresno. Your job was scheduled to end in 8 months. The job actually lasted 10 months.

You realistically expected the job in Fresno to last 8 months. The job actually did last less than 1 year. The job is temporary and your tax home is still in Los Angeles.

The facts are the same as in Example 1 , except that you realistically expected the work in Fresno to last 18 months. The job was actually completed in 10 months.

Your job in Fresno is indefinite because you realistically expected the work to last longer than 1 year, even though it actually lasted less than 1 year. You can’t deduct any travel expenses you had in Fresno because Fresno became your tax home.

The facts are the same as in Example 1 , except that you realistically expected the work in Fresno to last 9 months. After 8 months, however, you were asked to remain for 7 more months (for a total actual stay of 15 months).

Initially, you realistically expected the job in Fresno to last for only 9 months. However, due to changed circumstances occurring after 8 months, it was no longer realistic for you to expect that the job in Fresno would last for 1 year or less. You can deduct only your travel expenses for the first 8 months. You can’t deduct any travel expenses you had after that time because Fresno became your tax home when the job became indefinite.

If you go back to your tax home from a temporary assignment on your days off, you aren’t considered away from home while you are in your hometown. You can’t deduct the cost of your meals and lodging there. However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work.

If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work.

If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. You can’t deduct any of your expenses for meals and lodging during the probationary period.

What Travel Expenses Are Deductible?

Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible.

You can deduct ordinary and necessary expenses you have when you travel away from home on business. The type of expense you can deduct depends on the facts and your circumstances.

Table 1-1 summarizes travel expenses you may be able to deduct. You may have other deductible travel expenses that aren’t covered there, depending on the facts and your circumstances.

If you have one expense that includes the costs of non-entertainment-related meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of non-entertainment-related meals, and entertainment and the cost of other services. You must have a reasonable basis for making this allocation. For example, you must allocate your expenses if a hotel includes one or more meals in its room charge.

If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally can’t deduct their travel expenses.

You can deduct the travel expenses of someone who goes with you if that person:

Is your employee,

Has a bona fide business purpose for the travel, and

Would otherwise be allowed to deduct the travel expenses.

If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. A business associate is someone with whom you could reasonably expect to actively conduct business. A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor.

Table 1-1. Travel Expenses You Can Deduct

A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Incidental services, such as typing notes or assisting in entertaining customers, aren’t enough to make the expenses deductible.

You drive to Chicago on business and take your spouse with you. Your spouse isn’t your employee. Your spouse occasionally types notes, performs similar services, and accompanies you to luncheons and dinners. The performance of these services doesn’t establish that your spouse’s presence on the trip is necessary to the conduct of your business. Your spouse’s expenses aren’t deductible.

You pay $199 a day for a double room. A single room costs $149 a day. You can deduct the total cost of driving your car to and from Chicago, but only $149 a day for your hotel room. If both you and your spouse use public transportation, you can only deduct your fare.

You can deduct a portion of the cost of meals if it is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Meal and entertainment expenses are discussed in chapter 2 .

You can't deduct expenses for meals that are lavish or extravagant. An expense isn't considered lavish or extravagant if it is reasonable based on the facts and circumstances. Meal expenses won't be disallowed merely because they are more than a fixed dollar amount or because the meals take place at deluxe restaurants, hotels, or resorts.

You can figure your meal expenses using either of the following methods.

Actual cost.

If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. If you aren’t reimbursed, the 50% limit applies even if the unreimbursed meal expense is for business travel. Chapter 2 discusses the 50% Limit in more detail, and chapter 6 discusses accountable and nonaccountable plans.

You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. If you use this method, you must keep records of your actual cost.

Standard Meal Allowance

Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. The set amount varies depending on where and when you travel. In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . If you use the standard meal allowance, you must still keep records to prove the time, place, and business purpose of your travel. See the recordkeeping rules for travel in chapter 5 .

The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships.

Incidental expenses don’t include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings.

You can use an optional method (instead of actual cost) for deducting incidental expenses only. The amount of the deduction is $5 a day. You can use this method only if you didn’t pay or incur any meal expenses. You can’t use this method on any day that you use the standard meal allowance. This method is subject to the proration rules for partial days. See Travel for days you depart and return , later, in this chapter.

The incidental-expenses-only method isn’t subject to the 50% limit discussed below.

If you use the standard meal allowance method for non-entertainment-related meal expenses and you aren’t reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. The 50% Limit is discussed in more detail in chapter 2, and accountable and nonaccountable plans are discussed in chapter 6.

You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses.

You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. You can also use it to figure your meal expenses when you travel for qualifying educational purposes. You can’t use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes.

The standard meal allowance is the federal M&IE rate. For travel in 2023, the rate for most small localities in the United States is $59 per day.

Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances.

If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. If you work in the transportation industry, however, see Special rate for transportation workers , later.

Per diem rates are listed by the federal government's fiscal year, which runs from October 1 to September 30. You can choose to use the rates from the 2022 fiscal year per diem tables or the rates from the 2023 fiscal year tables, but you must consistently use the same tables for all travel you are reporting on your income tax return for the year. See Transition Rules , later.

The standard meal allowance rates above don’t apply to travel in Alaska, Hawaii, or any other location outside the continental United States. The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U.S. Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. The Department of State establishes per diem rates for all other foreign areas.

You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work:

Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck; and

Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates.

Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year.

For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). You can do so by one of two methods.

Method 1: You can claim 3 / 4 of the standard meal allowance.

Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice.

You are employed in New Orleans as a convention planner. In March, your employer sent you on a 3-day trip to Washington, DC, to attend a planning seminar. You left your home in New Orleans at 10 a.m. on Wednesday and arrived in Washington, DC, at 5:30 p.m. After spending 2 nights there, you flew back to New Orleans on Friday and arrived back home at 8 p.m. Your employer gave you a flat amount to cover your expenses and included it with your wages.

Under Method 1 , you can claim 2½ days of the standard meal allowance for Washington, DC: 3 / 4 of the daily rate for Wednesday and Friday (the days you departed and returned), and the full daily rate for Thursday.

Under Method 2 , you could also use any method that you apply consistently and that is in accordance with reasonable business practice. For example, you could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days.

Travel in the United States

The following discussion applies to travel in the United States. For this purpose, the United States includes the 50 states and the District of Columbia. The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. See Part of Trip Outside the United States , later.

You can deduct all of your travel expenses if your trip was entirely business related. If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct only your business-related travel expenses. These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination.

You work in Atlanta and take a business trip to New Orleans in May. Your business travel totals 900 miles round trip. On your way home, you stop in Mobile to visit your parents. You spend $2,165 for the 9 days you are away from home for travel, non-entertainment-related meals, lodging, and other travel expenses. If you hadn’t stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,633.50. You can deduct $1,633.50 for your trip, including the cost of round-trip transportation to and from New Orleans. The deduction for your non-entertainment-related meals is subject to the 50% limit on meals mentioned earlier.

If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. However, you can deduct any expenses you have while at your destination that are directly related to your business.

A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, won’t change what is really a vacation into a business trip.

Part of Trip Outside the United States

If part of your trip is outside the United States, use the rules described later in this chapter under Travel Outside the United States for that part of the trip. For the part of your trip that is inside the United States, use the rules for travel in the United States. Travel outside the United States doesn’t include travel from one point in the United States to another point in the United States. The following discussion can help you determine whether your trip was entirely within the United States.

If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States , later.

You fly from New York to Puerto Rico with a scheduled stop in Miami. Puerto Rico isn’t considered part of the United States for purposes of travel. You return to New York nonstop. The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States.

Travel by private car in the United States is travel between points in the United States, even though you are on your way to a destination outside the United States.

You travel by car from Denver to Mexico City and return. Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. The rules below under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border.

Travel Outside the United States

If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. For this purpose, the United States includes the 50 states and the District of Columbia.

How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related.

Travel Entirely for Business or Considered Entirely for Business

You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business.

If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses.

Even if you didn’t spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions.

Your trip is considered entirely for business if you didn’t have substantial control over arranging the trip. The fact that you control the timing of your trip doesn’t, by itself, mean that you have substantial control over arranging your trip.

You don’t have substantial control over your trip if you:

Are an employee who was reimbursed or paid a travel expense allowance, and

Aren’t related to your employer, or

Aren’t a managing executive.

“Related to your employer” is defined later in chapter 6 under Per Diem and Car Allowances .

A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel.

A self-employed person generally has substantial control over arranging business trips.

Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. One week means 7 consecutive days. In counting the days, don’t count the day you leave the United States, but do count the day you return to the United States.

You traveled to Brussels primarily for business. You left Denver on Tuesday and flew to New York. On Wednesday, you flew from New York to Brussels, arriving the next morning. On Thursday and Friday, you had business discussions, and from Saturday until Tuesday, you were sightseeing. You flew back to New York, arriving Wednesday afternoon. On Thursday, you flew back to Denver.

Although you were away from your home in Denver for more than a week, you weren’t outside the United States for more than a week. This is because the day you depart doesn’t count as a day outside the United States.

You can deduct your cost of the round-trip flight between Denver and Brussels. You can also deduct the cost of your stay in Brussels for Thursday and Friday while you conducted business. However, you can’t deduct the cost of your stay in Brussels from Saturday through Tuesday because those days were spent on nonbusiness activities.

Your trip is considered entirely for business if:

You were outside the United States for more than a week, and

You spent less than 25% of the total time you were outside the United States on nonbusiness activities.

You flew from Seattle to Tokyo, where you spent 14 days on business and 5 days on personal matters. You then flew back to Seattle. You spent 1 day flying in each direction.

Because only 5 / 21 (less than 25%) of your total time abroad was for nonbusiness activities, you can deduct as travel expenses what it would have cost you to make the trip if you hadn’t engaged in any nonbusiness activity. The amount you can deduct is the cost of the round-trip plane fare and 16 days of non-entertainment-related meals (subject to the 50% Limit ), lodging, and other related expenses.

Your trip is considered entirely for business if you can establish that a personal vacation wasn’t a major consideration, even if you have substantial control over arranging the trip.

Travel Primarily for Business

If you travel outside the United States primarily for business but spend some of your time on other activities, you generally can’t deduct all of your travel expenses. You can only deduct the business portion of your cost of getting to and from your destination. You must allocate the costs between your business and other activities to determine your deductible amount. See Travel allocation rules , later.

If your trip outside the United States was primarily for business, you must allocate your travel time on a day-to-day basis between business days and nonbusiness days. The days you depart from and return to the United States are both counted as days outside the United States.

To figure the deductible amount of your round-trip travel expenses, use the following fraction. The numerator (top number) is the total number of business days outside the United States. The denominator (bottom number) is the total number of business and nonbusiness days of travel.

Your business days include transportation days, days your presence was required, days you spent on business, and certain weekends and holidays.

Count as a business day any day you spend traveling to or from a business destination. However, if because of a nonbusiness activity you don’t travel by a direct route, your business days are the days it would take you to travel a reasonably direct route to your business destination. Extra days for side trips or nonbusiness activities can’t be counted as business days.

Count as a business day any day your presence is required at a particular place for a specific business purpose. Count it as a business day even if you spend most of the day on nonbusiness activities.

If your principal activity during working hours is the pursuit of your trade or business, count the day as a business day. Also, count as a business day any day you are prevented from working because of circumstances beyond your control.

Count weekends, holidays, and other necessary standby days as business days if they fall between business days. But if they follow your business meetings or activity and you remain at your business destination for nonbusiness or personal reasons, don’t count them as business days.

Your tax home is New York City. You travel to Quebec, where you have a business meeting on Friday. You have another meeting on the following Monday. Because your presence was required on both Friday and Monday, they are business days. Because the weekend is between business days, Saturday and Sunday are counted as business days. This is true even though you use the weekend for sightseeing, visiting friends, or other nonbusiness activity.

If, in Example 1 , you had no business in Quebec after Friday, but stayed until Monday before starting home, Saturday and Sunday would be nonbusiness days.

If you stopped for a vacation or other nonbusiness activity either on the way from the United States to your business destination, or on the way back to the United States from your business destination, you must allocate part of your travel expenses to the nonbusiness activity.

The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your nonbusiness destination and a return to the point where travel outside the United States ends.

You determine the nonbusiness portion of that expense by multiplying it by a fraction. The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States, and the denominator (bottom number) is the total number of days you spend outside the United States.

You live in New York. On May 4, you flew to Paris to attend a business conference that began on May 5. The conference ended at noon on May 14. That evening, you flew to Dublin where you visited with friends until the afternoon of May 21, when you flew directly home to New York. The primary purpose for the trip was to attend the conference.

If you hadn’t stopped in Dublin, you would have arrived home the evening of May 14. You don’t meet any of the exceptions that would allow you to consider your travel entirely for business. May 4 through May 14 (11 days) are business days and May 15 through May 21 (7 days) are nonbusiness days.

You can deduct the cost of your non-entertainment-related meals (subject to the 50% Limit ), lodging, and other business-related travel expenses while in Paris.

You can’t deduct your expenses while in Dublin. You also can’t deduct 7 / 18 of what it would have cost you to travel round trip between New York and Dublin.

You paid $750 to fly from New York to Paris, $400 to fly from Paris to Dublin, and $700 to fly from Dublin back to New York. Round-trip airfare from New York to Dublin would have been $1,250.

You figure the deductible part of your air travel expenses by subtracting 7 / 18 of the round-trip airfare and other expenses you would have had in traveling directly between New York and Dublin ($1,250 × 7 / 18 = $486) from your total expenses in traveling from New York to Paris to Dublin and back to New York ($750 + $400 + $700 = $1,850).

Your deductible air travel expense is $1,364 ($1,850 − $486).

If you had a vacation or other nonbusiness activity at, near, or beyond your business destination, you must allocate part of your travel expenses to the nonbusiness activity.

The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your business destination and a return to the point where travel outside the United States ends.

None of your travel expenses for nonbusiness activities at, near, or beyond your business destination are deductible.

Assume that the dates are the same as in the previous example but that instead of going to Dublin for your vacation, you fly to Venice, Italy, for a vacation.

You can’t deduct any part of the cost of your trip from Paris to Venice and return to Paris. In addition, you can’t deduct 7 / 18 of the airfare and other expenses from New York to Paris and back to New York.

You can deduct 11 / 18 of the round-trip plane fare and other travel expenses from New York to Paris, plus your non-entertainment-related meals (subject to the 50% Limit ), lodging, and any other business expenses you had in Paris. (Assume these expenses total $4,939.) If the round-trip plane fare and other travel-related expenses (such as food during the trip) are $1,750, you can deduct travel costs of $1,069 ( 11 / 18 × $1,750), plus the full $4,939 for the expenses you had in Paris.

You can use another method of counting business days if you establish that it more clearly reflects the time spent on other than business activities outside the United States.

If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. However, if you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business.

The university from which you graduated has a continuing education program for members of its alumni association. This program consists of trips to various foreign countries where academic exercises and conferences are set up to acquaint individuals in most occupations with selected facilities in several regions of the world. However, none of the conferences are directed toward specific occupations or professions. It is up to each participant to seek out specialists and organizational settings appropriate to their occupational interests.

Three-hour sessions are held each day over a 5-day period at each of the selected overseas facilities where participants can meet with individual practitioners. These sessions are composed of a variety of activities including workshops, mini-lectures, roleplaying, skill development, and exercises. Professional conference directors schedule and conduct the sessions. Participants can choose those sessions they wish to attend.

You can participate in this program because you are a member of the alumni association. You and your family take one of the trips. You spend about 2 hours at each of the planned sessions. The rest of the time you go touring and sightseeing with your family. The trip lasts less than 1 week.

Your travel expenses for the trip aren’t deductible since the trip was primarily a vacation. However, registration fees and any other incidental expenses you have for the five planned sessions you attended that are directly related and beneficial to your business are deductible business expenses. These expenses should be specifically stated in your records to ensure proper allocation of your deductible business expenses.

Luxury Water Travel

If you travel by ocean liner, cruise ship, or other form of luxury water transportation for business purposes, there is a daily limit on the amount you can deduct. The limit is twice the highest federal per diem rate allowable at the time of your travel. (Generally, the federal per diem is the amount paid to federal government employees for daily living expenses when they travel away from home within the United States for business purposes.)

The highest federal per diem rate allowed and the daily limit for luxury water travel in 2023 are shown in the following table.

You are a travel agent and traveled by ocean liner from New York to London, England, on business in May. Your expense for the 6-day cruise was $6,200. Your deduction for the cruise can’t exceed $4,776 (6 days × $796 daily limit).

If your expenses for luxury water travel include separately stated amounts for meals or entertainment, those amounts are subject to the 50% limit on non-entertainment-related meals and entertainment before you apply the daily limit. For a discussion of the 50% Limit , see chapter 2.

In the previous example, your luxury water travel had a total cost of $6,200. Of that amount, $3,700 was separately stated as non-entertainment-related meals and $1,000 was separately stated as entertainment. Considering that you are self-employed, you aren’t reimbursed for any of your travel expenses. You figure your deductible travel expenses as follows.

If your meal or entertainment charges aren’t separately stated or aren’t clearly identifiable, you don’t have to allocate any portion of the total charge to meals or entertainment.

The daily limit on luxury water travel (discussed earlier) doesn’t apply to expenses you have to attend a convention, seminar, or meeting on board a cruise ship. See Cruise Ships , later, under Conventions.

Conventions

You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. You can’t deduct the travel expenses for your family.

If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you can’t deduct the expenses.

The convention agenda or program generally shows the purpose of the convention. You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. The agenda doesn’t have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes.

Conventions Held Outside the North American Area

You can’t deduct expenses for attending a convention, seminar, or similar meeting held outside the North American area unless:

The meeting is directly related to the active conduct of your trade or business, and

It is as reasonable to hold the meeting outside the North American area as within the North American area. See Reasonableness test , later.

The North American area includes the following locations.

The following factors are taken into account to determine if it was as reasonable to hold the meeting outside the North American area as within the North American area.

The purpose of the meeting and the activities taking place at the meeting.

The purposes and activities of the sponsoring organizations or groups.

The homes of the active members of the sponsoring organizations and the places at which other meetings of the sponsoring organizations or groups have been or will be held.

Other relevant factors you may present.

You can deduct up to $2,000 per year of your expenses of attending conventions, seminars, or similar meetings held on cruise ships. All ships that sail are considered cruise ships.

You can deduct these expenses only if all of the following requirements are met.

The convention, seminar, or meeting is directly related to the active conduct of your trade or business.

The cruise ship is a vessel registered in the United States.

All of the cruise ship's ports of call are in the United States or in territories of the United States.

You attach to your return a written statement signed by you that includes information about:

The total days of the trip (not including the days of transportation to and from the cruise ship port),

The number of hours each day that you devoted to scheduled business activities, and

A program of the scheduled business activities of the meeting.

You attach to your return a written statement signed by an officer of the organization or group sponsoring the meeting that includes:

A schedule of the business activities of each day of the meeting, and

The number of hours you attended the scheduled business activities.

2. Meals and Entertainment

You can no longer take a deduction for any expense related to activities generally considered entertainment, amusement, or recreation. You can continue to deduct 50% of the cost of business meals if you (or your employee) are present and the food or beverages aren't considered lavish or extravagant.

Entertainment

Entertainment—defined.

Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. Entertainment may also include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families.

Your kind of business may determine if a particular activity is considered entertainment. For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally isn’t considered entertainment. This is because fashion shows are typical in your business. But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show is generally considered entertainment.

If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. You must have a reasonable basis for making this allocation. For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge.

In general, entertainment expenses are nondeductible. However, there are a few exceptions to the general rule, including:

Entertainment treated as compensation on your originally filed tax returns (and treated as wages to your employees);

Recreational expenses for employees such as a holiday party or a summer picnic;

Expenses related to attending business meetings or conventions of certain exempt organizations such as business leagues, chambers of commerce, professional associations, etc.; and

Entertainment sold to customers. For example, if you run a nightclub, your expenses for the entertainment you furnish to your customers, such as a floor show, aren’t subject to the nondeductible rules.

Examples of Nondeductible Entertainment

Generally, you can't deduct any expense for an entertainment event. This includes expenses for entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips.

Generally, you can’t deduct any expense for the use of an entertainment facility. This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection.

An entertainment facility is any property you own, rent, or use for entertainment. Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort.

You can’t deduct dues (including initiation fees) for membership in any club organized for business, pleasure, recreation, or other social purposes.

This rule applies to any membership organization if one of its principal purposes is either:

To conduct entertainment activities for members or their guests; or

To provide members or their guests with access to entertainment facilities, discussed later.

The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. You can’t deduct dues paid to:

Country clubs,

Golf and athletic clubs,

Airline clubs,

Hotel clubs, and

Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions.

Any item that might be considered either a gift or entertainment will generally be considered entertainment. However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift.

As discussed above, entertainment expenses are generally nondeductible. However, you may continue to deduct 50% of the cost of business meals if you (or an employee) is present and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant, or similar business contact.

Food and beverages that are provided during entertainment events are not considered entertainment if purchased separately from the entertainment, or if the cost of the food and beverages is stated separately from the cost of the entertainment on one or more bills, invoices, or receipts. However, the entertainment disallowance rule may not be circumvented through inflating the amount charged for food and beverages.

Any allowed expense must be ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense doesn't have to be required to be considered necessary. Expenses must not be lavish or extravagant. An expense isn't considered lavish or extravagant if it is reasonable based on the facts and circumstances.

For each example, assume that the food and beverage expenses are ordinary and necessary expenses under section 162(a) paid or incurred during the tax year in carrying on a trade or business and are not lavish or extravagant under the circumstances. Also assume that the taxpayer and the business contact are not engaged in a trade or business that has any relation to the entertainment activity.

Taxpayer A invites B, a business contact, to a baseball game. A purchases tickets for A and B to attend the game. While at the game, A buys hot dogs and drinks for A and B. The baseball game is entertainment as defined in Regulations section 1.274-11(b)(1)(i) and, thus, the cost of the game tickets is an entertainment expense and is not deductible by A. The cost of the hot dogs and drinks, which are purchased separately from the game tickets, is not an entertainment expense and is not subject to the section 274(a)(1) disallowance. Therefore, A may deduct 50% of the expenses associated with the hot dogs and drinks purchased at the game.

Taxpayer C invites D, a business contact, to a basketball game. C purchases tickets for C and D to attend the game in a suite, where they have access to food and beverages. The cost of the basketball game tickets, as stated on the invoice, includes the food and beverages. The basketball game is entertainment as defined in Regulations section 1.274-11(b)(1)(i) and, thus, the cost of the game tickets is an entertainment expense and is not deductible by C. The cost of the food and beverages, which are not purchased separately from the game tickets, is not stated separately on the invoice. Thus, the cost of the food and beverages is also an entertainment expense that is subject to the section 274(a)(1) disallowance. Therefore, C may not deduct any of the expenses associated with the basketball game.

Assume the same facts as in Example 2 , except that the invoice for the basketball game tickets separately states the cost of the food and beverages. As in Example 2 , the basketball game is entertainment as defined in Regulations section 1.274-2(b)(1)(i) and, thus, the cost of the game tickets, other than the cost of the food and beverages, is an entertainment expense and is not deductible by C. However, the cost of the food and beverages, which is stated separately on the invoice for the game tickets, is not an entertainment expense and is not subject to the section 274(a)(1) disallowance. Therefore, C may deduct 50% of the expenses associated with the food and beverages provided at the game.

In general, you can deduct only 50% of your business-related meal expenses, unless an exception applies. (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal expenses. See Individuals subject to hours of service limits , later.)

The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed.

Examples of meals might include:

Meals while traveling away from home (whether eating alone or with others) on business, or

Meal at a business convention or business league meeting.

Figure A. Does the 50% Limit Apply to Your Expenses?

There are exceptions to these rules. See Exceptions to the 50% Limit for Meals , later.

Figure A. Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions

Summary: This is a flowchart used to determine if employees and self-employed persons need to put a 50% limit on their business expense deductions.

This is the starting of the flowchart.

Decision (1)

Were your meal and entertainment expenses reimbursed? (Count only reimbursements your employer didn’t include in box 1 of your Form W-2. If self-employed, count only reimbursements from clients or customers that aren’t included on Form 1099-MISC, Miscellaneous Income.)

Decision (2)

If an employee, did you adequately account to your employer under an accountable plan? If self-employed, did you provide the payer with adequate records? (See Chapter 6.)

Decision (3)

Did your expenses exceed the reimbursement?

Decision (4)

Process (a)

Your meal and entertainment expenses are NOT subject to the limitations. However, since the reimbursement wasn’t treated as wages or as other taxable income, you can’t deduct the expenses.

Process (b)

Your nonentertainment meal expenses ARE subject to the 50% limit. Your entertainment expenses are nondeductible.

This is the ending of the flowchart.

Please click here for the text description of the image.

Taxes and tips relating to a business meal are included as a cost of the meal and are subject to the 50% limit. However, the cost of transportation to and from the meal is not treated as part of the cost and would not be subject to the limit.

The 50% limit on meal expenses applies if the expense is otherwise deductible and isn’t covered by one of the exceptions discussed later. Figure A can help you determine if the 50% limit applies to you.

The 50% limit also applies to certain meal expenses that aren’t business related. It applies to meal expenses you have for the production of income, including rental or royalty income. It also applies to the cost of meals included in deductible educational expenses.

The 50% limit will apply after determining the amount that would otherwise qualify for a deduction. You first have to determine the amount of meal expenses that would be deductible under the other rules discussed in this publication.

If a group of business acquaintances takes turns picking up each others' meal checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense.

You spend $200 (including tax and tip) for a business meal. If $110 of that amount isn’t allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Your deduction can’t be more than $45 (50% (0.50) × $90).

You purchase two tickets to a concert for $200 for you and your client. Your deduction is zero because no deduction is allowed for entertainment expenses.

Exception to the 50% Limit for Meals

Your meal expense isn’t subject to the 50% limit if the expense meets one of the following exceptions.

In general, expenses for goods, services, and facilities, to the extent the expenses are treated by the taxpayer, with respect to entertainment, amusement, or recreation, as compensation to an employee and as wages to the employee for tax purposes.

If you are an employee, you aren’t subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Accountable plans are discussed in chapter 6.

If you are self-employed, your deductible meal expenses aren’t subject to the 50% limit if all of the following requirements are met.

You have these expenses as an independent contractor.

Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform.

You provide adequate records of these expenses to your customer or client. (See chapter 5 .)

In this case, your client or customer is subject to the 50% limit on the expenses.

You are a self-employed attorney who adequately accounts for meal expenses to a client who reimburses you for these expenses. You aren’t subject to the limitation on meal expenses. If the client can deduct the expenses, the client is subject to the 50% limit.

If you (as an independent contractor) have expenses for meals related to providing services for a client but don’t adequately account for and seek reimbursement from the client for those expenses, you are subject to the 50% limit on non-entertainment-related meals and the entertainment-related meal expenses are nondeductible to you.

You aren't subject to the 50% limit for expenses for recreational, social, or similar activities (including facilities) such as a holiday party or a summer picnic.

You aren’t subject to the 50% limit if you provide meals to the general public as a means of advertising or promoting goodwill in the community. For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit.

You aren’t subject to the 50% limit if you actually sell meals to the public. For example, if you run a restaurant, your expense for the food you furnish to your customers isn’t subject to the 50% limit.

You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. The percentage is 80%.

Individuals subject to the Department of Transportation's “hours of service” limits include the following persons.

Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations.

Interstate truck operators and bus drivers who are under Department of Transportation regulations.

Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations.

Certain merchant mariners who are under Coast Guard regulations.

If you give gifts in the course of your trade or business, you may be able to deduct all or part of the cost. This chapter explains the limits and rules for deducting the costs of gifts.

You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift.

If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. This rule doesn’t apply if you have a bona fide, independent business connection with that family member and the gift isn’t intended for the customer's eventual use.

If you and your spouse both give gifts, both of you are treated as one taxpayer. It doesn’t matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. If a partnership gives gifts, the partnership and the partners are treated as one taxpayer.

You sell products to a local company. You and your spouse gave the local company three gourmet gift baskets to thank them for their business. You and your spouse paid $80 for each gift basket, or $240 total. Three of the local company's executives took the gift baskets home for their families' use. You and your spouse have no independent business relationship with any of the executives' other family members. You and your spouse can deduct a total of $75 ($25 limit × 3) for the gift baskets.

Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit.

A cost is incidental only if it doesn’t add substantial value to the gift. For example, the cost of gift wrapping is an incidental cost. However, the purchase of an ornamental basket for packaging fruit isn’t an incidental cost if the value of the basket is substantial compared to the value of the fruit.

The following items aren’t considered gifts for purposes of the $25 limit.

An item that costs $4 or less and:

Has your name clearly and permanently imprinted on the gift, and

Is one of a number of identical items you widely distribute. Examples include pens, desk sets, and plastic bags and cases.

Signs, display racks, or other promotional material to be used on the business premises of the recipient.

Figure B. When Are Transportation Expenses Deductible?

Most employees and self-employed persons can use this chart. (Don’t use this chart if your home is your principal place of business. See Office in the home , later.)

Figure B. When Are Local Transportation Expenses Deductible?TAs for Figure B are: Reg 1.162-1(a); RR 55–109; RR 94–47

Summary: This illustration depicts the rules used to determine if transportation expenses are deductible.

The image then lists definitions for words used in the graphic:

Any item that might be considered either a gift or entertainment will generally be considered entertainment. However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift.

4. Transportation

This chapter discusses expenses you can deduct for business transportation when you aren’t traveling away from home , as defined in chapter 1. These expenses include the cost of transportation by air, rail, bus, taxi, etc., and the cost of driving and maintaining your car.

Transportation expenses include the ordinary and necessary costs of all of the following.

Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Tax home is defined in chapter 1.

Visiting clients or customers.

Going to a business meeting away from your regular workplace.

Getting from your home to a temporary workplace when you have one or more regular places of work. These temporary workplaces can be either within the area of your tax home or outside that area.

Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. However, there may be exceptions to this general rule. You can deduct daily transportation expenses incurred going between your residence and a temporary work station outside the metropolitan area where you live. Also, daily transportation expenses can be deducted if (1) you have one or more regular work locations away from your residence; or (2) your residence is your principal place of business and you incur expenses going between the residence and another work location in the same trade or business, regardless of whether the work is temporary or permanent and regardless of the distance.

Illustration of transportation expenses.

Figure B above illustrates the rules that apply for deducting transportation expenses when you have a regular or main job away from your home. You may want to refer to it when deciding whether you can deduct your transportation expenses.

If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance.

If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise.

If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment isn’t temporary, regardless of whether it actually lasts for more than 1 year.

If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. It won’t be treated as temporary after the date you determine it will last more than 1 year.

If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. You may have deductible travel expenses, as discussed in chapter 1 .

If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area.

Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area.

You can’t deduct daily transportation costs between your home and temporary work sites within your metropolitan area. These are nondeductible commuting expenses.

If you work at two places in 1 day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. However, if for some personal reason you don’t go directly from one location to the other, you can’t deduct more than the amount it would have cost you to go directly from the first location to the second.

Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. You can’t deduct them.

A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work .

You usually can’t deduct the expense if the reserve meeting is held on a day on which you don’t work at your regular job. In this case, your transportation is generally a nondeductible commuting expense. However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work.

If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses.

If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. These expenses are discussed in chapter 1 .

If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to gross income rather than as an itemized deduction. For more information, see Armed Forces Reservists Traveling More Than 100 Miles From Home under Special Rules in chapter 6.

You can’t deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You can’t deduct commuting expenses no matter how far your home is from your regular place of work. You can’t deduct commuting expenses even if you work during the commuting trip.

You sometimes use your cell phone to make business calls while commuting to and from work. Sometimes business associates ride with you to and from work, and you have a business discussion in the car. These activities don’t change the trip from personal to business. You can’t deduct your commuting expenses.

Fees you pay to park your car at your place of business are nondeductible commuting expenses. You can, however, deduct business-related parking fees when visiting a customer or client.

Putting display material that advertises your business on your car doesn’t change the use of your car from personal use to business use. If you use this car for commuting or other personal uses, you still can’t deduct your expenses for those uses.

You can’t deduct the cost of using your car in a nonprofit car pool. Don’t include payments you receive from the passengers in your income. These payments are considered reimbursements of your expenses. However, if you operate a car pool for a profit, you must include payments from passengers in your income. You can then deduct your car expenses (using the rules in this publication).

Hauling tools or instruments in your car while commuting to and from work doesn’t make your car expenses deductible. However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car).

If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located.

If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. (See Pub. 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business.)

The following examples show when you can deduct transportation expenses based on the location of your work and your home.

You regularly work in an office in the city where you live. Your employer sends you to a 1-week training session at a different office in the same city. You travel directly from your home to the training location and return each day. You can deduct the cost of your daily round-trip transportation between your home and the training location.

Your principal place of business is in your home. You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business.

You have no regular office, and you don’t have an office in your home. In this case, the location of your first business contact inside the metropolitan area is considered your office. Transportation expenses between your home and this first contact are nondeductible commuting expenses. Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. While you can’t deduct the costs of these trips, you can deduct the costs of going from one client or customer to another.

Car Expenses

If you use your car for business purposes, you may be able to deduct car expenses. You can generally use one of the two following methods to figure your deductible expenses.

Actual car expenses.

The cost of using your car as an employee, whether measured using actual expenses or the standard mileage rate, will no longer be allowed to be claimed as an unreimbursed employee travel expense as a miscellaneous itemized deduction due to the suspension of miscellaneous itemized deductions that are subject to the 2% floor under section 67(a). The suspension applies to tax years beginning after December 2017 and before January 2026. Deductions for expenses that are deductible in determining adjusted gross income are not suspended. For example, Armed Forces reservists, qualified performing artists, and fee-basis state or local government officials are allowed to deduct unreimbursed employee travel expenses as an adjustment to total income on Schedule 1 (Form 1040), line 12.

If you use actual expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. See Leasing a Car , later.

In this publication, “car” includes a van, pickup, or panel truck. For the definition of “car” for depreciation purposes, see Car defined under Actual Car Expenses , later.

Standard Mileage Rate

For 2023, the standard mileage rate for the cost of operating your car for business use is 65.5 cents ($0.655) per mile.

You can generally use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. See chapter 6 for more information on reimbursements .

If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.

If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. For leases that began on or before December 31, 1997, the standard mileage rate must be used for the entire portion of the lease period (including renewals) that is after 1997.

You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. You can’t revoke the choice. However, in later years, you can switch from the standard mileage rate to the actual expenses method. If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation for the car’s remaining estimated useful life, subject to depreciation limits (discussed later).

For more information about depreciation included in the standard mileage rate, see Exception under Methods of depreciation , later.

You can’t use the standard mileage rate if you:

Use five or more cars at the same time (such as in fleet operations);

Claimed a depreciation deduction for the car using any method other than straight line for the car’s estimated useful life;

Used the Modified Accelerated Cost Recovery System (MACRS) (as discussed later under Depreciation Deduction );

Claimed a section 179 deduction (discussed later) on the car;

Claimed the special depreciation allowance on the car; or

Claimed actual car expenses after 1997 for a car you leased.

You can elect to use the standard mileage rate if you used a car for hire (such as a taxi) unless the standard mileage rate is otherwise not allowed, as discussed above.

If you own or lease five or more cars that are used for business at the same time, you can’t use the standard mileage rate for the business use of any car. However, you may be able to deduct your actual expenses for operating each of the cars in your business. See Actual Car Expenses , later, for information on how to figure your deduction.

You aren’t using five or more cars for business at the same time if you alternate using (use at different times) the cars for business.

The following examples illustrate the rules for when you can and can’t use the standard mileage rate for five or more cars.

A salesperson owns three cars and two vans that they alternate using for calling on their customers. The salesperson can use the standard mileage rate for the business mileage of the three cars and the two vans because they don’t use them at the same time.

You and your employees use your four pickup trucks in your landscaping business. During the year, you traded in two of your old trucks for two newer ones. You can use the standard mileage rate for the business mileage of all six of the trucks you owned during the year.

You own a repair shop and an insurance business. You and your employees use your two pickup trucks and van for the repair shop. You alternate using your two cars for the insurance business. No one else uses the cars for business purposes. You can use the standard mileage rate for the business use of the pickup trucks, the van, and the cars because you never have more than four vehicles used for business at the same time.

You own a car and four vans that are used in your housecleaning business. Your employees use the vans, and you use the car to travel to various customers. You can’t use the standard mileage rate for the car or the vans. This is because all five vehicles are used in your business at the same time. You must use actual expenses for all vehicles.

If you are an employee, you can’t deduct any interest paid on a car loan. This applies even if you use the car 100% for business as an employee.

However, if you are self-employed and use your car in your business, you can deduct that part of the interest expense that represents your business use of the car. For example, if you use your car 60% for business, you can deduct 60% of the interest on Schedule C (Form 1040). You can’t deduct the part of the interest expense that represents your personal use of the car.

If you itemize your deductions on Schedule A (Form 1040), you can deduct on line 5c state and local personal property taxes on motor vehicles. You can take this deduction even if you use the standard mileage rate or if you don’t use the car for business.

If you are self-employed and use your car in your business, you can deduct the business part of state and local personal property taxes on motor vehicles on Schedule C (Form 1040), or Schedule F (Form 1040). If you itemize your deductions, you can include the remainder of your state and local personal property taxes on the car on Schedule A (Form 1040).

In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses.)

If you sell, trade in, or otherwise dispose of your car, you may have a gain or loss on the transaction or an adjustment to the basis of your new car. See Disposition of a Car , later.

Actual Car Expenses

If you don’t use the standard mileage rate, you may be able to deduct your actual car expenses.

Actual car expenses include:

If you have fully depreciated a car that you still use in your business, you can continue to claim your other actual car expenses. Continue to keep records, as explained later in chapter 5 .

If you use your car for both business and personal purposes, you must divide your expenses between business and personal use. You can divide your expense based on the miles driven for each purpose.

You are a contractor and drive your car 20,000 miles during the year: 12,000 miles for business use and 8,000 miles for personal use. You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense.

If you use a vehicle provided by your employer for business purposes, you can deduct your actual unreimbursed car expenses. You can’t use the standard mileage rate. See Vehicle Provided by Your Employer in chapter 6.

If you are an employee, you can’t deduct any interest paid on a car loan. This interest is treated as personal interest and isn’t deductible. If you are self-employed and use your car in that business, see Interest , earlier, under Standard Mileage Rate.

If you are an employee, you can deduct personal property taxes paid on your car if you itemize deductions. Enter the amount paid on Schedule A (Form 1040), line 5c.

Generally, sales taxes on your car are part of your car's basis and are recovered through depreciation, discussed later.

You can’t deduct fines you pay or collateral you forfeit for traffic violations.

If your car is damaged, destroyed, or stolen, you may be able to deduct part of the loss not covered by insurance. See Pub. 547, Casualties, Disasters, and Thefts, for information on deducting a loss on your car.

Generally, the cost of a car, plus sales tax and improvements, is a capital expense. Because the benefits last longer than 1 year, you generally can’t deduct a capital expense. However, you can recover this cost through the section 179 deduction (the deduction allowed by section 179 of the Internal Revenue Code), special depreciation allowance, and depreciation deductions. Depreciation allows you to recover the cost over more than 1 year by deducting part of it each year. The section 179 deduction , special depreciation allowance , and depreciation deductions are discussed later.

Generally, there are limits on these deductions. Special rules apply if you use your car 50% or less in your work or business.

You can claim a section 179 deduction and use a depreciation method other than straight line only if you don’t use the standard mileage rate to figure your business-related car expenses in the year you first place a car in service.

If, in the year you first place a car in service, you claim either a section 179 deduction or use a depreciation method other than straight line for its estimated useful life, you can’t use the standard mileage rate on that car in any future year.

For depreciation purposes, a car is any four-wheeled vehicle (including a truck or van) made primarily for use on public streets, roads, and highways. Its unloaded gross vehicle weight (for trucks and vans, gross vehicle weight) must not be more than 6,000 pounds. A car includes any part, component, or other item physically attached to it or usually included in the purchase price.

A car doesn’t include:

An ambulance, hearse, or combination ambulance-hearse used directly in a business;

A vehicle used directly in the business of transporting persons or property for pay or hire; or

A truck or van that is a qualified nonpersonal use vehicle.

These are vehicles that by their nature aren’t likely to be used more than a minimal amount for personal purposes. They include trucks and vans that have been specially modified so that they aren’t likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat, are qualified nonpersonal use vehicles.

See Depreciation Deduction , later, for more information on how to depreciate your vehicle.

Section 179 Deduction

You can elect to recover all or part of the cost of a car that is qualifying section 179 property, up to a limit, by deducting it in the year you place the property in service. This is the section 179 deduction. If you elect the section 179 deduction, you must reduce your depreciable basis in the car by the amount of the section 179 deduction.

You can claim the section 179 deduction only in the year you place the car in service. For this purpose, a car is placed in service when it is ready and available for a specifically assigned use in a trade or business. Even if you aren’t using the property, it is in service when it is ready and available for its specifically assigned use.

A car first used for personal purposes can’t qualify for the deduction in a later year when its use changes to business.

In 2022, you bought a new car and used it for personal purposes. In 2023, you began to use it for business. Changing its use to business use doesn’t qualify the cost of your car for a section 179 deduction in 2023. However, you can claim a depreciation deduction for the business use of the car starting in 2023. See Depreciation Deduction , later.

You must use the property more than 50% for business to claim any section 179 deduction. If you used the property more than 50% for business, multiply the cost of the property by the percentage of business use. The result is the cost of the property that can qualify for the section 179 deduction.

You purchased a new car in April 2023 for $24,500 and used it 60% for business. Based on your business usage, the total cost of your car that qualifies for the section 179 deduction is $14,700 ($24,500 cost × 60% (0.60) business use). But see Limit on total section 179, special depreciation allowance, and depreciation deduction , discussed later.

There are limits on:

The amount of the section 179 deduction;

The section 179 deduction for sport utility and certain other vehicles; and

The total amount of the section 179 deduction, special depreciation allowance, and depreciation deduction (discussed later ) you can claim for a qualified property.

For tax years beginning in 2023, the total amount you can elect to deduct under section 179 can’t be more than $1,160,000.

If the cost of your section 179 property placed in service in tax years beginning in 2023 is over $2,890,000, you must reduce the $1,160,000 dollar limit (but not below zero) by the amount of cost over $2,890,000. If the cost of your section 179 property placed in service during tax years beginning in 2023 is $4,050,000 or more, you can’t take a section 179 deduction.

The total amount you can deduct under section 179 each year after you apply the limits listed above cannot be more than the taxable income from the active conduct of any trade or business during the year.

If you are married and file a joint return, you and your spouse are treated as one taxpayer in determining any reduction to the dollar limit, regardless of which of you purchased the property or placed it in service.

If you and your spouse file separate returns, you are treated as one taxpayer for the dollar limit. You must allocate the dollar limit (after any reduction) between you.

For more information on the above section 179 deduction limits, see Pub. 946, How To Depreciate Property.

You cannot elect to deduct more than $28,900 of the cost of any heavy sport utility vehicle (SUV) and certain other vehicles placed in service during the tax years beginning in 2023. This rule applies to any four-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways that isn’t subject to any of the passenger automobile limits explained under Depreciation Limits , later, and that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight. However, the $28,900 limit doesn’t apply to any vehicle:

Designed to have a seating capacity of more than nine persons behind the driver's seat;

Equipped with a cargo area of at least 6 feet in interior length that is an open area or is designed for use as an open area but is enclosed by a cap and isn’t readily accessible directly from the passenger compartment; or

That has an integral enclosure, fully enclosing the driver compartment and load carrying device, doesn’t have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.

The first-year limit on the depreciation deduction, special depreciation allowance, and section 179 deduction for vehicles acquired before September 28, 2017, and placed in service during 2023, is $12,200. The first-year limit on depreciation, special depreciation allowance, and section 179 deduction for vehicles acquired after September 27, 2017, and placed in service during 2023 increases to $20,200. If you elect not to claim a special depreciation allowance for a vehicle placed in service in 2023, the amount increases to $12,200. The limit is reduced if your business use of the vehicle is less than 100%. See Depreciation Limits , later, for more information.

In the earlier example under More than 50% business use requirement , you had a car with a cost (for purposes of the section 179 deduction) of $14,700. However, based on your business usage of the car, the total of your section 179 deduction, special depreciation allowance, and depreciation deductions is limited to $12,120 ($20,200 limit x 60% (0.60) business use) because the car was acquired after September 27, 2017, and placed in service during 2023.

For purposes of the section 179 deduction, the cost of the car doesn’t include any amount figured by reference to any other property held by you at any time. For example, if you buy a car as a replacement for a car that was stolen or that was destroyed in a casualty loss, and you use section 1033 to determine the basis in your replacement vehicle, your cost for purposes of the section 179 deduction doesn’t include your adjusted basis in the relinquished car. In that case, your cost includes only the cash you paid.

The amount of the section 179 deduction reduces your basis in your car. If you choose the section 179 deduction, you must subtract the amount of the deduction from the cost of your car. The resulting amount is the basis in your car you use to figure your depreciation deduction.

If you want to take the section 179 deduction, you must make the election in the tax year you place the car in service for business or work.

Employees use Form 2106, Employee Business Expenses, to make the election and report the section 179 deduction. All others use Form 4562, Depreciation and Amortization, to make an election.

File the appropriate form with either of the following.

Your original tax return filed for the year the property was placed in service (whether or not you file it timely).

An amended return filed within the time prescribed by law. An election made on an amended return must specify the item of section 179 property to which the election applies and the part of the cost of each such item to be taken into account. The amended return must also include any resulting adjustments to taxable income.

An election (or any specification made in the election) to take a section 179 deduction for 2023 can only be revoked with the Commissioner's approval.

To be eligible to claim the section 179 deduction, you must use your car more than 50% for business or work in the year you acquired it. If your business use of the car is 50% or less in a later tax year during the recovery period, you have to recapture (include in income) in that later year any excess depreciation. Any section 179 deduction claimed on the car is included in figuring the excess depreciation. For information on this calculation, see Excess depreciation , later in this chapter under Car Used 50% or Less for Business. For more information on recapture of a section 179 deduction, see Pub. 946.

If you dispose of a car on which you had claimed the section 179 deduction, the amount of that deduction is treated as a depreciation deduction for recapture purposes. You treat any gain on the disposition of the property as ordinary income up to the amount of the section 179 deduction and any allowable depreciation (unless you establish the amount actually allowed). For information on the disposition of a car, see Disposition of a Car , later. For more information on recapture of a section 179 deduction, see Pub. 946.

Special Depreciation Allowance

You may be able to claim the special depreciation allowance for your car, truck, or van if it is qualified property and was placed in service in 2023. The allowance for 2023 is an additional depreciation deduction for 100% of the car's depreciable basis (after any section 179 deduction, but before figuring your regular depreciation deduction under MACRS) if the vehicle was acquired after September 27, 2017, and placed in service during 2023. Further, while it applies to a new vehicle, it also applies to a used vehicle only if the vehicle meets the used property requirements. For more information on the used property requirements, see section 168(k)(2)(E)(ii). To qualify for the allowance, more than 50% of the use of the car must be in a qualified business use (as defined under Depreciation Deduction , later).

The first-year limit on the depreciation deduction, special depreciation allowance, and section 179 deduction for vehicles acquired before September 28, 2017, and placed in service during 2023, is $12,200. Your combined section 179 depreciation, special depreciation allowance, and regular MACRS depreciation deduction is limited to the maximum allowable depreciation deduction for vehicles acquired after September 27, 2017, and placed in service during 2023 is $20,200. If you elect not to claim a special depreciation allowance for a vehicle placed in service in 2023, the amount is $12,200. See Depreciation Limits , later in this chapter.

To be qualified property, the car (including the truck or van) must meet all of the following tests.

You acquired the car after September 27, 2017, but only if no written binding contract to acquire the car existed before September 28, 2017.

You acquired the car new or used.

You placed the car in service in your trade or business before January 1, 2027.

You used the car more than 50% in a qualified business use during the tax year.

You can elect not to claim the special depreciation allowance for your car, truck, or van that is qualified property. If you make this election, it applies to all 5-year property placed in service during the year.

To make this election, attach a statement to your timely filed return (including extensions) indicating the class of property (5-year for cars) for which you are making the election and that you are electing not to claim the special depreciation allowance for qualified property in that class of property.

Depreciation Deduction

If you use actual car expenses to figure your deduction for a car you own and use in your business, you can claim a depreciation deduction. This means you can deduct a certain amount each year as a recovery of your cost or other basis in your car.

You generally need to know the following things about the car you intend to depreciate.

Your basis in the car.

The date you place the car in service.

The method of depreciation and recovery period you will use.

Your basis in a car for figuring depreciation is generally its cost. This includes any amount you borrow or pay in cash, other property, or services.

Generally, you figure depreciation on your car, truck, or van using your unadjusted basis (see Unadjusted basis , later). However, in some situations, you will use your adjusted basis (your basis reduced by depreciation allowed or allowable in earlier years). For one of these situations, see Exception under Methods of depreciation , later.

If you change the use of a car from personal to business, your basis for depreciation is the lesser of the fair market value or your adjusted basis in the car on the date of conversion. Additional rules concerning basis are discussed later in this chapter under Unadjusted basis .

You generally place a car in service when it is available for use in your work or business, in an income-producing activity, or in a personal activity. Depreciation begins when the car is placed in service for use in your work or business or for the production of income.

For purposes of figuring depreciation, if you first start using the car only for personal use and later convert it to business use, you place the car in service on the date of conversion.

If you place a car in service and dispose of it in the same tax year, you can’t claim any depreciation deduction for that car.

Generally, you figure depreciation on cars using the Modified Accelerated Cost Recovery (MACRS) discussed later in this chapter.

If you used the standard mileage rate in the first year of business use and change to the actual expenses method in a later year, you can’t depreciate your car under the MACRS rules. You must use straight line depreciation over the estimated remaining useful life of the car. The amount you depreciate can’t be more than the depreciation limit that applies for that year. See Depreciation Limits , later.

To figure depreciation under the straight line method, you must reduce your basis in the car (but not below zero) by a set rate per mile for all miles for which you used the standard mileage rate. The rate per mile varies depending on the year(s) you used the standard mileage rate. For the rate(s) to use, see Depreciation adjustment when you used the standard mileage rate under Disposition of a Car , later.

This reduction of basis is in addition to those basis adjustments described later under Unadjusted basis . You must use your adjusted basis in your car to figure your depreciation deduction. For additional information on the straight line method of depreciation, see Pub. 946.

Generally, you must use your car more than 50% for qualified business use (defined next) during the year to use MACRS. You must meet this more-than-50%-use test each year of the recovery period (6 years under MACRS) for your car.

If your business use is 50% or less, you must use the straight line method to depreciate your car. This is explained later under Car Used 50% or Less for Business .

A qualified business use is any use in your trade or business. It doesn’t include use for the production of income (investment use), or use provided under lease to, or as compensation to, a 5% owner or related person. However, you do combine your business and investment use to figure your depreciation deduction for the tax year.

Don’t treat any use of your car by another person as use in your trade or business unless that use meets one of the following conditions.

It is directly connected with your business.

It is properly reported by you as income to the other person (and, if you have to, you withhold tax on the income).

It results in a payment of fair market rent. This includes any payment to you for the use of your car.

If you used your car more than 50% in qualified business use in the year you placed it in service, but 50% or less in a later year (including the year of disposition), you have to change to the straight line method of depreciation. See Qualified business use 50% or less in a later year under Car Used 50% or Less for Business , later.

If you use your car for more than one purpose during the tax year, you must allocate the use to the various purposes. You do this on the basis of mileage. Figure the percentage of qualified business use by dividing the number of miles you drive your car for business purposes during the year by the total number of miles you drive the car during the year for any purpose.

If you change the use of a car from 100% personal use to business use during the tax year, you may not have mileage records for the time before the change to business use. In this case, you figure the percentage of business use for the year as follows.

Determine the percentage of business use for the period following the change. Do this by dividing business miles by total miles driven during that period.

Multiply the percentage in (1) by a fraction. The numerator (top number) is the number of months the car is used for business, and the denominator (bottom number) is 12.

You use a car only for personal purposes during the first 6 months of the year. During the last 6 months of the year, you drive the car a total of 15,000 miles of which 12,000 miles are for business. This gives you a business use percentage of 80% (12,000 ÷ 15,000) for that period. Your business use for the year is 40% (80% (0.80) × 6 / 12 ).

The amount you can claim for section 179, special depreciation allowance, and depreciation deductions may be limited. The maximum amount you can claim depends on the year in which you placed your car in service. You have to reduce the maximum amount if you did not use the car exclusively for business. See Depreciation Limits , later.

You use your unadjusted basis (often referred to as your basis or your basis for depreciation) to figure your depreciation using the MACRS depreciation chart, explained later under Modified Accelerated Cost Recovery System (MACRS) . Your unadjusted basis for figuring depreciation is your original basis increased or decreased by certain amounts.

To figure your unadjusted basis, begin with your car's original basis, which is generally its cost. Cost includes sales taxes (see Sales taxes , earlier), destination charges, and dealer preparation. Increase your basis by any substantial improvements you make to your car, such as adding air conditioning or a new engine. Decrease your basis by any section 179 deduction, special depreciation allowance, gas guzzler tax, and vehicle credits claimed. See Pub. 551, Basis of Assets, for further details.

If you acquired the car by gift or inheritance, see Pub. 551, Basis of Assets, for information on your basis in the car.

A major improvement to a car is treated as a new item of 5-year recovery property. It is treated as placed in service in the year the improvement is made. It doesn’t matter how old the car is when the improvement is added. Follow the same steps for depreciating the improvement as you would for depreciating the original cost of the car. However, you must treat the improvement and the car as a whole when applying the limits on the depreciation deductions. Your car's depreciation deduction for the year (plus any section 179 deduction, special depreciation allowance, and depreciation on any improvements) can’t be more than the depreciation limit that applies for that year. See Depreciation Limits , later.

If you traded one car (the “old car”) for another car (the “new car”) in 2023, you must treat the transaction as a disposition of the old car and the purchase of the new car. You must treat the old car as disposed of at the time of the trade-in. The depreciable basis of the new car is the adjusted basis of the old car (figured as if 100% of the car’s use had been for business purposes) plus any additional amount you paid for the new car. You then figure your depreciation deduction for the new car beginning with the date you placed it in service. You must also complete Form 2106, Part II, Section D. This method is explained later, beginning at Effect of trade-in on basis .

The discussion that follows applies to trade-ins of cars in 2023, where the election was made to treat the transaction as a disposition of the old car and the purchase of the new car. For information on how to figure depreciation for cars involved in a like-kind exchange (trade-in) in 2023, for which the election wasn’t made, see Pub. 946 and Regulations section 1.168(i)-6(d)(3).

Like‐kind exchanges completed after December 31, 2017, are generally limited to exchanges of real property not held primarily for sale. Regulations section 1.168(i)-6 doesn't reflect this change in law.

If you trade in a car you used only in your business for another car that will be used only in your business, your original basis in the new car is your adjusted basis in the old car, plus any additional amount you pay for the new car.

You trade in a car that has an adjusted basis of $5,000 for a new car. In addition, you pay cash of $20,000 for the new car. Your original basis of the new car is $25,000 (your $5,000 adjusted basis in the old car plus the $20,000 cash paid). Your unadjusted basis is $25,000 unless you claim the section 179 deduction, special depreciation allowance, or have other increases or decreases to your original basis, discussed under Unadjusted basis , earlier.

If you trade in a car you used partly in your business for a new car you will use in your business, you must make a “trade-in” adjustment for the personal use of the old car. This adjustment has the effect of reducing your basis in your old car, but not below zero, for purposes of figuring your depreciation deduction for the new car. (This adjustment isn’t used, however, when you determine the gain or loss on the later disposition of the new car. See Pub. 544, Sales and Other Dispositions of Assets, for information on how to report the disposition of your car.)

To figure the unadjusted basis of your new car for depreciation, first add to your adjusted basis in the old car any additional amount you pay for the new car. Then subtract from that total the excess, if any, of:

The total of the amounts that would have been allowable as depreciation during the tax years before the trade if 100% of the use of the car had been business and investment use, over

The total of the amounts actually allowed as depreciation during those years.

MACRS is the name given to the tax rules for getting back (recovering) through depreciation deductions the cost of property used in a trade or business or to produce income.

The maximum amount you can deduct is limited, depending on the year you placed your car in service. See Depreciation Limits , later.

Under MACRS, cars are classified as 5-year property. You actually depreciate the cost of a car, truck, or van over a period of 6 calendar years. This is because your car is generally treated as placed in service in the middle of the year, and you claim depreciation for one-half of both the first year and the sixth year.

For more information on the qualifications for this shorter recovery period and the percentages to use in figuring the depreciation deduction, see chapter 4 of Pub. 946.

You can use one of the following methods to depreciate your car.

The 200% declining balance method (200% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction.

The 150% declining balance method (150% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction.

The straight line method (SL) over a 5-year recovery period.

Before choosing a method, you may wish to consider the following facts.

Using the straight line method provides equal yearly deductions throughout the recovery period.

Using the declining balance methods provides greater deductions during the earlier recovery years with the deductions generally getting smaller each year.

A 2023 MACRS Depreciation Chart and instructions are included in this chapter as Table 4-1 . Using this table will make it easy for you to figure the 2023 depreciation deduction for your car. A similar chart appears in the Instructions for Form 2106.

You must use the Depreciation Tables in Pub. 946 rather than the 2023 MACRS Depreciation Chart in this publication if any one of the following three conditions applies to you.

You file your return on a fiscal year basis.

You file your return for a short tax year (less than 12 months).

During the year, all of the following conditions apply.

You placed some property in service from January through September.

You placed some property in service from October through December.

Your basis in the property you placed in service from October through December (excluding nonresidential real property, residential rental property, and property placed in service and disposed of in the same year) was more than 40% of your total bases in all property you placed in service during the year.

If you use the percentages from the chart, you generally must continue to use them for the entire recovery period of your car. However, you can’t continue to use the chart if your basis in your car is adjusted because of a casualty. In that case, for the year of the adjustment and the remaining recovery period, figure the depreciation without the chart using your adjusted basis in the car at the end of the year of the adjustment and over the remaining recovery period. See Figuring the Deduction Without Using the Tables in chapter 4 of Pub. 946.

If you dispose of the car before the last year of the recovery period, you are generally allowed a half-year of depreciation in the year of disposition. This rule applies unless the mid-quarter convention applies to the vehicle being disposed of. See Depreciation deduction for the year of disposition under Disposition of a Car , later, for information on how to figure the depreciation allowed in the year of disposition.

To figure your depreciation deduction for 2023, find the percentage in the column of Table 4-1 based on the date that you first placed the car in service and the depreciation method that you are using. Multiply the unadjusted basis of your car (defined earlier) by that percentage to determine the amount of your depreciation deduction. If you prefer to figure your depreciation deduction without the help of the chart, see Pub. 946.

You bought a used truck in February 2022 to use exclusively in your landscape business. You paid $9,200 for the truck with no trade-in. You didn’t claim any section 179 deduction, the truck didn’t qualify for the special depreciation allowance, and you chose to use the 200% DB method to get the largest depreciation deduction in the early years.

You used the MACRS Depreciation Chart in 2022 to find your percentage. The unadjusted basis of the truck equals its cost because you used it exclusively for business. You multiplied the unadjusted basis of the truck, $9,200, by the percentage that applied, 20%, to figure your 2022 depreciation deduction of $1,840.

In 2023, you used the truck for personal purposes when you repaired your parent’s cabin. Your records show that the business use of the truck was 90% in 2023. You used Table 4-1 to find your percentage. Reading down the first column for the date placed in service and across to the 200% DB column, you locate your percentage, 32%. You multiply the unadjusted basis of the truck, $8,280 ($9,200 cost × 90% (0.90) business use), by 32% (0.32) to figure your 2023 depreciation deduction of $2,650.

Depreciation Limits

There are limits on the amount you can deduct for depreciation of your car, truck, or van. The section 179 deduction and special depreciation allowance are treated as depreciation for purposes of the limits. The maximum amount you can deduct each year depends on the date you acquired the passenger automobile and the year you place the passenger automobile in service. These limits are shown in the following tables for 2023.

Maximum Depreciation Deduction for Passenger Automobiles (Including Trucks and Vans) Acquired Before September 28, 2017, and Placed in Service During 2018–2023

Maximum depreciation deduction for passenger automobiles (including trucks and vans) acquired after september 27, 2017, and placed in service during 2018 or later.

The maximum amount you can deduct each year depends on the year you place the car in service. These limits are shown in the following tables for prior years.

Maximum Depreciation Deduction for Cars Placed in Service Prior to 2018

For tax years prior to 2018, the maximum depreciation deductions for trucks and vans are generally higher than those for cars. A truck or van is a passenger automobile that is classified by the manufacturer as a truck or van and rated at 6,000 pounds gross vehicle weight or less.

Maximum Depreciation Deduction for Trucks and Vans Placed in Service Prior to 2018

The depreciation limits aren’t reduced if you use a car for less than a full year. This means that you don’t reduce the limit when you either place a car in service or dispose of a car during the year. However, the depreciation limits are reduced if you don’t use the car exclusively for business and investment purposes. See Reduction for personal use next.

The depreciation limits are reduced based on your percentage of personal use. If you use a car less than 100% in your business or work, you must determine the depreciation deduction limit by multiplying the limit amount by the percentage of business and investment use during the tax year.

The section 179 deduction is treated as a depreciation deduction. If you acquired a passenger automobile (including trucks and vans) after September 27, 2017, and placed it in service in 2023, use it only for business, and choose the section 179 deduction, the special depreciation allowance and depreciation deduction for that vehicle for 2023 is limited to $20,200.

On September 4, 2023, you bought and placed in service a used car for $15,000. You used it 80% for your business, and you choose to take a section 179 deduction for the car. The car isn’t qualified property for purposes of the special depreciation allowance.

Before applying the limit, you figure your maximum section 179 deduction to be $12,000. This is the cost of your qualifying property (up to the maximum $1,160,000 amount) multiplied by your business use ($15,000 × 80% (0.80)).

You then figure that your section 179 deduction for 2023 is limited to $9,760 (80% of $12,200). You then figure your unadjusted basis of $2,440 (($15,000 × 80% (0.80)) − $9,760) for determining your depreciation deduction. You have reached your maximum depreciation deduction for 2023. For 2024, you will use your unadjusted basis of $2,440 to figure your depreciation deduction.

If the depreciation deductions for your car are reduced under the passenger automobile limits (discussed earlier), you will have unrecovered basis in your car at the end of the recovery period. If you continue to use your car for business, you can deduct that unrecovered basis (subject to depreciation limits) after the recovery period ends.

This is your cost or other basis in the car reduced by any clean-fuel vehicle deduction (for vehicles placed in service before January 1, 2006), alternative motor vehicle credit, electric vehicle credit, gas guzzler tax, and depreciation (including any special depreciation allowance , discussed earlier, unless you elect not to claim it) and section 179 deductions that would have been allowable if you had used the car 100% for business and investment use.

For 5-year property, your recovery period is 6 calendar years. A part year's depreciation is allowed in the first calendar year, a full year's depreciation is allowed in each of the next 4 calendar years, and a part year's depreciation is allowed in the 6th calendar year.

Under MACRS, your recovery period is the same whether you use declining balance or straight line depreciation. You determine your unrecovered basis in the 7th year after you placed the car in service.

If you continue to use your car for business after the recovery period, you can claim a depreciation deduction in each succeeding tax year until you recover your basis in the car. The maximum amount you can deduct each year is determined by the date you placed the car in service and your business-use percentage. For example, no deduction is allowed for a year you use your car 100% for personal purposes.

In April 2017, you bought and placed in service a car you used exclusively in your business. The car cost $31,500. You didn’t claim a section 179 deduction or the special depreciation allowance for the car. You continued to use the car 100% in your business throughout the recovery period (2017 through 2022). For those years, you used the MACRS Depreciation Chart (200% DB method), the Maximum Depreciation Deduction for Cars Placed in Service Prior to 2018 table and Maximum Depreciation Deduction for Passenger Automobiles (Including Trucks and Vans) Acquired Before September 28, 2017, and Placed in Service During 2018–2023 table, earlier, for the applicable tax year to figure your depreciation deductions during the recovery period. Your depreciation deductions were subject to the depreciation limits, so you will have unrecovered basis at the end of the recovery period as shown in the following table.

At the end of 2022, you had an unrecovered basis in the car of $14,626 ($31,500 – $16,874). If you continued to use the car 100% for business in 2023 and later years, you can claim a depreciation deduction equal to the lesser of $1,875 or your remaining unrecovered basis.

If your business use of the car was less than 100% during any year, your depreciation deduction would be less than the maximum amount allowable for that year. However, in determining your unrecovered basis in the car, you would still reduce your original basis by the maximum amount allowable as if the business use had been 100%. For example, if you had used your car 60% for business instead of 100%, your allowable depreciation deductions would have been $10,124 ($16,874 × 60% (0.60)), but you still would have to reduce your basis by $16,874 to determine your unrecovered basis.

Table 4-1. 2023 MACRS Depreciation Chart (Use To Figure Depreciation for 2023)

Car used 50% or less for business.

If you use your car 50% or less for qualified business use (defined earlier under Depreciation Deduction ) either in the year the car is placed in service or in a later year, special rules apply. The rules that apply in these two situations are explained in the following paragraphs. (For this purpose, “car” was defined earlier under Actual Car Expenses and includes certain trucks and vans.)

If you use your car 50% or less for qualified business use, the following rules apply.

You can’t take the section 179 deduction.

You can’t take the special depreciation allowance.

You must figure depreciation using the straight line method over a 5-year recovery period. You must continue to use the straight line method even if your percentage of business use increases to more than 50% in a later year.

Instead of making the computation yourself, you can use column (c) of Table 4-1 to find the percentage to use.

In May 2023, you bought and placed in service a car for $17,500. You used it 40% for your consulting business. Because you didn’t use the car more than 50% for business, you can’t take any section 179 deduction or special depreciation allowance, and you must use the straight line method over a 5-year recovery period to recover the cost of your car.

You deduct $700 in 2023. This is the lesser of:

$700 (($17,500 cost × 40% (0.40) business use) × 10% (0.10) recovery percentage (from column (c) of Table 4-1 )), or

$4,880 ($12,200 maximum limit × 40% (0.40) business use).

If you use your car more than 50% in qualified business use in the tax year it is placed in service but the business use drops to 50% or less in a later year, you can no longer use an accelerated depreciation method for that car.

For the year the business use drops to 50% or less and all later years in the recovery period, you must use the straight line depreciation method over a 5-year recovery period. In addition, for the year your business use drops to 50% or less, you must recapture (include in your gross income) any excess depreciation (discussed later). You also increase the adjusted basis of your car by the same amount.

In June 2020, you purchased a car for exclusive use in your business. You met the more-than-50%-use test for the first 3 years of the recovery period (2020 through 2022) but failed to meet it in the fourth year (2023). You determine your depreciation for 2023 using 20% (from column (c) of Table 4-1 ). You will also have to determine and include in your gross income any excess depreciation, discussed next.

You must include any excess depreciation in your gross income and add it to your car's adjusted basis for the first tax year in which you don’t use the car more than 50% in qualified business use. Use Form 4797, Sales of Business Property, to figure and report the excess depreciation in your gross income.

Excess depreciation is:

The amount of the depreciation deductions allowable for the car (including any section 179 deduction claimed and any special depreciation allowance claimed) for tax years in which you used the car more than 50% in qualified business use, minus

The amount of the depreciation deductions that would have been allowable for those years if you hadn’t used the car more than 50% in qualified business use for the year you placed it in service. This means the amount of depreciation figured using the straight line method.

In September 2019, you bought a car for $20,500 and placed it in service. You didn’t claim the section 179 deduction or the special depreciation allowance. You used the car exclusively in qualified business use for 2019, 2020, 2021, and 2022. For those years, you used the appropriate MACRS Depreciation Chart to figure depreciation deductions totaling $13,185 ($3,160 for 2019, $5,100 for 2020, $3,050 for 2021, and $1,875 for 2022) under the 200% DB method.

During 2023, you used the car 30% for business and 70% for personal purposes. Since you didn’t meet the more-than-50%-use test, you must switch from the 200% DB depreciation method to the straight line depreciation method for 2023, and include in gross income for 2023 your excess depreciation determined as follows.

In 2023, using Form 4797, you figure and report the $2,110 excess depreciation you must include in your gross income. Your adjusted basis in the car is also increased by $2,110. Your 2023 depreciation is $1,230 ($20,500 (unadjusted basis) × 30% (0.30) (business-use percentage) × 20% (0.20) (from column (c) of Table 4-1 on the line for Jan. 1–Sept. 30, 2019)). However, your depreciation deduction is limited to $563 ($1,875 x 30% (0.30) business use).

Leasing a Car

If you lease a car, truck, or van that you use in your business, you can use the standard mileage rate or actual expenses to figure your deductible expense. This section explains how to figure actual expenses for a leased car, truck, or van.

If you choose to use actual expenses, you can deduct the part of each lease payment that is for the use of the vehicle in your business. You can’t deduct any part of a lease payment that is for personal use of the vehicle, such as commuting.

You must spread any advance payments over the entire lease period. You can’t deduct any payments you make to buy a car, truck, or van even if the payments are called “lease payments.”

If you lease a car, truck, or van for 30 days or more, you may have to reduce your lease payment deduction by an “inclusion amount,” explained next.

Inclusion Amounts

If you lease a car, truck, or van that you use in your business for a lease term of 30 days or more, you may have to include an inclusion amount in your income for each tax year you lease the vehicle. To do this, you don’t add an amount to income. Instead, you reduce your deduction for your lease payment. (This reduction has an effect similar to the limit on the depreciation deduction you would have on the vehicle if you owned it.)

The inclusion amount is a percentage of part of the fair market value of the leased vehicle multiplied by the percentage of business and investment use of the vehicle for the tax year. It is prorated for the number of days of the lease term in the tax year.

The inclusion amount applies to each tax year that you lease the vehicle if the fair market value (defined next) when the lease began was more than the amounts shown in the following tables.

All vehicles are subject to a single inclusion amount threshold for passenger automobiles leased and put into service in 2023. You may have an inclusion amount for a passenger automobile if:

Passenger Automobiles (Including Trucks and Vans)

For years prior to 2018, see the inclusion tables below. You may have an inclusion amount for a passenger automobile if:

Cars (Except for Trucks and Vans)

Trucks and Vans

Fair market value is the price at which the property would change hands between a willing buyer and seller, neither having to buy or sell, and both having reasonable knowledge of all the necessary facts. Sales of similar property around the same date may be helpful in figuring the fair market value of the property.

Figure the fair market value on the first day of the lease term. If the capitalized cost of a car is specified in the lease agreement, use that amount as the fair market value.

Inclusion amounts for tax years 2018–2023 are listed in Appendices A-1 through A-6 for passenger vehicles (including trucks and vans). If the fair market value of the vehicle is $100,000 or less, use the appropriate appendix (depending on the year you first placed the vehicle in service) to determine the inclusion amount. If the fair market value is more than $100,000, see the revenue procedure(s) identified in the footnote of that year’s appendix for the inclusion amount.

For each tax year during which you lease the car for business, determine your inclusion amount by following these three steps.

Locate the appendix that applies to you. To find the inclusion amount, do the following.

Find the line that includes the fair market value of the car on the first day of the lease term.

Go across the line to the column for the tax year in which the car is used under the lease to find the dollar amount. For the last tax year of the lease, use the dollar amount for the preceding year.

Prorate the dollar amount from (1b) for the number of days of the lease term included in the tax year.

Multiply the prorated amount from (2) by the percentage of business and investment use for the tax year. This is your inclusion amount.

On January 17, 2023, you leased a car for 3 years and placed it in service for use in your business. The car had a fair market value of $62,500 on the first day of the lease term. You use the car 75% for business and 25% for personal purposes during each year of the lease. Assuming you continue to use the car 75% for business, you use Appendix A-6 to arrive at the following inclusion amounts for each year of the lease. For the last tax year of the lease, 2026, you use the amount for the preceding year.

2024 is a leap year and includes an extra calendar day, February 29, 2024.

For each year of the lease that you deduct lease payments, you must reduce your deduction by the inclusion amount figured for that year.

If you lease a car for business use and, in a later year, change it to personal use, follow the rules explained earlier under Figuring the inclusion amount . For the tax year in which you stop using the car for business, use the dollar amount for the previous tax year. Prorate the dollar amount for the number of days in the lease term that fall within the tax year.

On August 16, 2022, you leased a car with a fair market value of $64,500 for 3 years. You used the car exclusively in your data processing business. On November 6, 2023, you closed your business and went to work for a company where you aren’t required to use a car for business. Using Appendix A-5 , you figured your inclusion amount for 2022 and 2023 as shown in the following table and reduced your deductions for lease payments by those amounts.

If you lease a car for personal use and, in a later year, change it to business use, you must determine the car's fair market value on the date of conversion. Then figure the inclusion amount using the rules explained earlier under Figuring the inclusion amount . Use the fair market value on the date of conversion.

In March 2021, you leased a truck for 4 years for personal use. On June 1, 2023, you started working as a self-employed advertising consultant and started using the leased truck for business purposes. Your records show that your business use for June 1 through December 31 was 60%. To figure your inclusion amount for 2023, you obtained an appraisal from an independent car leasing company that showed the fair market value of your 2021 truck on June 1, 2023, was $62,650. Using Appendix A-6 , you figured your inclusion amount for 2023 as shown in the following table.

For information on reporting inclusion amounts, employees should see Car rentals under Completing Forms 2106 in chapter 6. Sole proprietors should see the Instructions for Schedule C (Form 1040), and farmers should see the Instructions for Schedule F (Form 1040).

Disposition of a Car

If you dispose of your car, you may have a taxable gain or a deductible loss. The portion of any gain that is due to depreciation (including any section 179 deduction, clean-fuel vehicle deduction (for vehicles placed in service before January 1, 2006), and special depreciation allowance) that you claimed on the car will be treated as ordinary income. However, you may not have to recognize a gain or loss if you dispose of the car because of a casualty or theft.

This section gives some general information about dispositions of cars. For information on how to report the disposition of your car, see Pub. 544.

Like‐kind exchanges completed after December 31, 2017, are generally limited to exchanges of real property not held primarily for sale.

For a casualty or theft, a gain results when you receive insurance or other reimbursement that is more than your adjusted basis in your car. If you then spend all of the proceeds to acquire replacement property (a new car or repairs to the old car) within a specified period of time, you don’t recognize any gain. Your basis in the replacement property is its cost minus any gain that isn’t recognized. See Pub. 547 for more information.

When you trade in an old car for a new one, the transaction is considered a like-kind exchange. Generally, no gain or loss is recognized. (For exceptions, see chapter 1 of Pub. 544.) In a trade-in situation, your basis in the new property is generally your adjusted basis in the old property plus any additional amount you pay. (See Unadjusted basis , earlier.)

If you used the standard mileage rate for the business use of your car, depreciation was included in that rate. The rate of depreciation that was allowed in the standard mileage rate is shown in the Rate of Depreciation Allowed in Standard Mileage Rate table, later. You must reduce your basis in your car (but not below zero) by the amount of this depreciation.

If your basis is reduced to zero (but not below zero) through the use of the standard mileage rate, and you continue to use your car for business, no adjustment (reduction) to the standard mileage rate is necessary. Use the full standard mileage rate (65.5 cents ($0.655) per mile from January 1–December 31 for 2023) for business miles driven.

Rate of Depreciation Allowed in Standard Mileage Rate

In 2018, you bought and placed in service a car for exclusive use in your business. The car cost $25,500. From 2018 through 2023, you used the standard mileage rate to figure your car expense deduction. You drove your car 14,100 miles in 2018, 16,300 miles in 2019, 15,600 miles in 2020, 16,700 miles in 2021, 15,100 miles in 2022, and 14,900 miles in 2023. The depreciation portion of your car expense deduction is figured as follows.

If you deduct actual car expenses and you dispose of your car before the end of the recovery period (years 2 through 5), you are allowed a reduced depreciation deduction in the year of disposition.

Use the depreciation tables in Pub. 946 to figure the reduced depreciation deduction for a car disposed of in 2023.

The depreciation amounts computed using the depreciation tables in Pub. 946 for years 2 through 5 that you own your car are for a full year’s depreciation. Years 1 and 6 apply the half-year or mid-quarter convention to the computation for you. If you dispose of the vehicle in years 2 through 5 and the half-year convention applies, then the full year’s depreciation amount must be divided by 2. If the mid-quarter convention applies, multiply the full year’s depreciation by the percentage from the following table for the quarter that you disposed of the car.

If the car is subject to the Depreciation Limits , discussed earlier, reduce (but do not increase) the computed depreciation to this amount. See Sale or Other Disposition Before the Recovery Period Ends in chapter 4 of Pub. 946 for more information.

5. Recordkeeping

If you deduct travel, gift, or transportation expenses, you must be able to prove (substantiate) certain elements of expense. This chapter discusses the records you need to keep to prove these expenses.

How To Prove Expenses

Table 5-1 is a summary of records you need to prove each expense discussed in this publication. You must be able to prove the elements listed across the top portion of the chart. You prove them by having the information and receipts (where needed) for the expenses listed in the first column.

You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. You must generally prepare a written record for it to be considered adequate. This is because written evidence is more reliable than oral evidence alone. However, if you prepare a record on a computer, it is considered an adequate record.

What Are Adequate Records?

You should keep the proof you need in an account book, diary, log, statement of expense, trip sheets, or similar record. You should also keep documentary evidence that, together with your record, will support each element of an expense.

You must generally have documentary evidence such as receipts, canceled checks, or bills, to support your expenses.

Documentary evidence isn’t needed if any of the following conditions apply.

You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and you use a per diem allowance method that includes meals and/or lodging. ( Accountable plans and per diem allowances are discussed in chapter 6.)

Your expense, other than lodging, is less than $75.

You have a transportation expense for which a receipt isn’t readily available.

Documentary evidence will ordinarily be considered adequate if it shows the amount, date, place, and essential character of the expense.

For example, a hotel receipt is enough to support expenses for business travel if it has all of the following information.

The name and location of the hotel.

The dates you stayed there.

Separate amounts for charges such as lodging, meals, and telephone calls.

A restaurant receipt is enough to prove an expense for a business meal if it has all of the following information.

The name and location of the restaurant.

The number of people served.

The date and amount of the expense.

A canceled check, together with a bill from the payee, ordinarily establishes the cost. However, a canceled check by itself doesn’t prove a business expense without other evidence to show that it was for a business purpose.

You don‘t have to record information in your account book or other record that duplicates information shown on a receipt as long as your records and receipts complement each other in an orderly manner.

You don’t have to record amounts your employer pays directly for any ticket or other travel item. However, if you charge these items to your employer, through a credit card or otherwise, you must keep a record of the amounts you spend.

You should record the elements of an expense or of a business use at or near the time of the expense or use and support it with sufficient documentary evidence. A timely kept record has more value than a statement prepared later when there is generally a lack of accurate recall.

You don’t need to write down the elements of every expense on the day of the expense. If you maintain a log on a weekly basis that accounts for use during the week, the log is considered a timely kept record.

If you give your employer, client, or customer an expense account statement, it can also be considered a timely kept record. This is true if you copy it from your account book, diary, log, statement of expense, trip sheets, or similar record.

You must generally provide a written statement of the business purpose of an expense. However, the degree of proof varies according to the circumstances in each case. If the business purpose of an expense is clear from the surrounding circumstances, then you don’t need to give a written explanation.

If you are a sales representative who calls on customers on an established sales route, you don’t have to give a written explanation of the business purpose for traveling that route. You can satisfy the requirements by recording the length of the delivery route once, the date of each trip at or near the time of the trips, and the total miles you drove the car during the tax year. You could also establish the date of each trip with a receipt, record of delivery, or other documentary evidence.

You don’t need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense.

What if I Have Incomplete Records?

If you don’t have complete records to prove an element of an expense, then you must prove the element with:

Your own written or oral statement containing specific information about the element, and

Other supporting evidence that is sufficient to establish the element.

If the element is the description of a gift, or the cost, time, place, or date of an expense, the supporting evidence must be either direct evidence or documentary evidence. Direct evidence can be written statements or the oral testimony of your guests or other witnesses setting forth detailed information about the element. Documentary evidence can be receipts, paid bills, or similar evidence.

If the element is either the business relationship of your guests or the business purpose of the amount spent, the supporting evidence can be circumstantial rather than direct. For example, the nature of your work, such as making deliveries, provides circumstantial evidence of the use of your car for business purposes. Invoices of deliveries establish when you used the car for business.

Table 5-1. How To Prove Certain Business Expenses

You can keep an adequate record for parts of a tax year and use that record to prove the amount of business or investment use for the entire year. You must demonstrate by other evidence that the periods for which an adequate record is kept are representative of the use throughout the tax year.

You use your car to visit the offices of clients, meet with suppliers and other subcontractors, and pick up and deliver items to clients. There is no other business use of the car, but you and your family use the car for personal purposes. You keep adequate records during the first week of each month that show that 75% of the use of the car is for business. Invoices and bills show that your business use continues at the same rate during the later weeks of each month. Your weekly records are representative of the use of the car each month and are sufficient evidence to support the percentage of business use for the year.

You can satisfy the substantiation requirements with other evidence if, because of the nature of the situation in which an expense is made, you can’t get a receipt. This applies if all the following are true.

You were unable to obtain evidence for an element of the expense or use that completely satisfies the requirements explained earlier under What Are Adequate Records .

You are unable to obtain evidence for an element that completely satisfies the two rules listed earlier under What if I Have Incomplete Records .

You have presented other evidence for the element that is the best proof possible under the circumstances.

If you can’t produce a receipt because of reasons beyond your control, you can prove a deduction by reconstructing your records or expenses. Reasons beyond your control include fire, flood, and other casualties.

Separating and Combining Expenses

This section explains when expenses must be kept separate and when expenses can be combined.

Each separate payment is generally considered a separate expense. For example, if you entertain a customer or client at dinner and then go to the theater, the dinner expense and the cost of the theater tickets are two separate expenses. You must record them separately in your records.

You can make one daily entry in your record for reasonable categories of expenses. Examples are taxi fares, telephone calls, or other incidental travel costs. Nonentertainment meals should be in a separate category. You can include tips for meal-related services with the costs of the meals.

Expenses of a similar nature occurring during the course of a single event are considered a single expense.

You can account for several uses of your car that can be considered part of a single use, such as a round trip or uninterrupted business use, with a single record. Minimal personal use, such as a stop for lunch on the way between two business stops, isn’t an interruption of business use.

You make deliveries at several different locations on a route that begins and ends at your employer's business premises and that includes a stop at the business premises between two deliveries. You can account for these using a single record of miles driven.

You don’t always have to record the name of each recipient of a gift. A general listing will be enough if it is evident that you aren’t trying to avoid the $25 annual limit on the amount you can deduct for gifts to any one person. For example, if you buy a large number of tickets to local high school basketball games and give one or two tickets to each of many customers, it is usually enough to record a general description of the recipients.

If you can prove the total cost of travel or entertainment but you can’t prove how much it costs for each person who participated in the event, you may have to allocate the total cost among you and your guests on a pro rata basis. To do so, you must establish the number of persons who participated in the event.

If your return is examined, you may have to provide additional information to the IRS. This information could be needed to clarify or to establish the accuracy or reliability of information contained in your records, statements, testimony, or documentary evidence before a deduction is allowed.

How Long To Keep Records and Receipts

You must keep records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support your deduction (or an item of income) for 3 years from the date you file the income tax return on which the deduction is claimed. A return filed early is considered filed on the due date. For a more complete explanation of how long to keep records, see Pub. 583, Starting a Business and Keeping Records.

You must keep records of the business use of your car for each year of the recovery period. See More-than-50%-use test in chapter 4 under Depreciation Deduction.

Employees who give their records and documentation to their employers and are reimbursed for their expenses generally don’t have to keep copies of this information. However, you may have to prove your expenses if any of the following conditions apply.

You claim deductions for expenses that are more than reimbursements.

Your expenses are reimbursed under a nonaccountable plan.

Your employer doesn’t use adequate accounting procedures to verify expense accounts.

You are related to your employer as defined under Per Diem and Car Allowances in chapter 6.

Table 5-2 and Table 5-3 are examples of worksheets that can be used for tracking business expenses.

Table 5-2. Daily Business Mileage and Expense Log

Table 5-3. Weekly Traveling Expense Record

6. How To Report

This chapter explains where and how to report the expenses discussed in this publication. It discusses reimbursements and how to treat them under accountable and nonaccountable plans. It also explains rules for independent contractors and clients, fee-basis officials, certain performing artists, Armed Forces reservists, and certain disabled employees. The chapter ends with illustrations of how to report travel, gift, and car expenses on Forms 2106.

Where To Report

This section provides general information on where to report the expenses discussed in this publication.

You must report your income and expenses on Schedule C (Form 1040) if you are a sole proprietor, or on Schedule F (Form 1040) if you are a farmer. You don’t use Form 2106.

If you claim car or truck expenses, you must provide certain information on the use of your vehicle. You provide this information on Schedule C (Form 1040) or Form 4562.

If you file Schedule C (Form 1040):

Report your travel expenses, except meals, on line 24a;

Report your deductible non-entertainment-related meals (actual cost or standard meal allowance) on line 24b;

Report your gift expenses and transportation expenses, other than car expenses, on line 27a; and

Report your car expenses on line 9. Complete Part IV of the form unless you have to file Form 4562 for depreciation or amortization.

If you file Schedule F (Form 1040), do the following.

Report your car expenses on line 10. Attach Form 4562 and provide information on the use of your car in Part V of Form 4562.

Report all other business expenses discussed in this publication on line 32. You can only include 50% of your non-entertainment-related meals on that line.

If you are both self-employed and an employee, you must keep separate records for each business activity. Report your business expenses for self-employment on Schedule C (Form 1040), or Schedule F (Form 1040), as discussed earlier. Report your business expenses for your work as an employee on Form 2106, as discussed next.

If you are an employee, you must generally complete Form 2106 to deduct your travel and transportation expenses.

You are an employee deducting expenses attributable to your job.

You weren’t reimbursed by your employer for your expenses (amounts included in box 1 of your Form W-2 aren’t considered reimbursements).

If you claim car expenses, you use the standard mileage rate.

For more information on how to report your expenses on Form 2106, see Completing Form 2106 , later.

If you didn’t receive any reimbursements (or the reimbursements were all included in box 1 of your Form W-2), the only business expense you are claiming is for gifts, and the special rules discussed later don’t apply to you, don’t complete Form 2106.

If you received a Form W-2 and the “Statutory employee” box in box 13 was checked, report your income and expenses related to that income on Schedule C (Form 1040). Don’t complete Form 2106.

Statutory employees include full-time life insurance salespersons, certain agent or commission drivers, traveling salespersons, and certain homeworkers.

If your employer reimburses you for nondeductible personal expenses, such as for vacation trips, your employer must report the reimbursement as wage income in box 1 of your Form W-2. You can’t deduct personal expenses.

If you have travel or transportation expenses related to income-producing property, report your deductible expenses on the form appropriate for that activity.

For example, if you have rental real estate income and expenses, report your expenses on Schedule E (Form 1040), Supplemental Income and Loss. See Pub. 527, Residential Rental Property, for more information on the rental of real estate.

Vehicle Provided by Your Employer

If your employer provides you with a car, you may be able to deduct the actual expenses of operating that car for business purposes. The amount you can deduct depends on the amount that your employer included in your income and the business and personal miles you drove during the year. You can’t use the standard mileage rate.

Your employer can figure and report either the actual value of your personal use of the car or the value of the car as if you used it only for personal purposes (100% income inclusion). Your employer must separately state the amount if 100% of the annual lease value was included in your income. If you are unsure of the amount included on your Form W-2, ask your employer.

You may be able to deduct the value of the business use of an employer-provided car if your employer reported 100% of the value of the car in your income. On your 2023 Form W-2, the amount of the value will be included in box 1, Wages, tips, other compensation; and box 14, Other.

To claim your expenses, complete Form 2106, Part II, Sections A and C. Enter your actual expenses on line 23 of Section C and include the entire value of the employer-provided car on line 25. Complete the rest of the form.

If less than the full annual lease value of the car was included on your Form W-2, this means that your Form W-2 only includes the value of your personal use of the car. Don’t enter this value on your Form 2106 because it isn’t deductible.

If you paid any actual costs (that your employer didn’t provide or reimburse you for) to operate the car, you can deduct the business portion of those costs. Examples of costs that you may have are gas, oil, and repairs. Complete Form 2106, Part II, Sections A and C. Enter your actual costs on line 23 of Section C and leave line 25 blank. Complete the rest of the form.

Reimbursements

This section explains what to do when you receive an advance or are reimbursed for any of the employee business expenses discussed in this publication.

If you received an advance, allowance, or reimbursement for your expenses, how you report this amount and your expenses depends on whether your employer reimbursed you under an accountable plan or a nonaccountable plan.

This section explains the two types of plans, how per diem and car allowances simplify proving the amount of your expenses, and the tax treatment of your reimbursements and expenses. It also covers rules for independent contractors.

You aren’t reimbursed or given an allowance for your expenses if you are paid a salary or commission with the understanding that you will pay your own expenses. In this situation, you have no reimbursement or allowance arrangement, and you don’t have to read this section on reimbursements. Instead, see Completing Form 2106 , later, for information on completing your tax return.

A reimbursement or other expense allowance arrangement is a system or plan that an employer uses to pay, substantiate, and recover the expenses, advances, reimbursements, and amounts charged to the employer for employee business expenses. Arrangements include per diem and car allowances.

A per diem allowance is a fixed amount of daily reimbursement your employer gives you for your lodging and M&IE when you are away from home on business. (The term “incidental expenses” is defined in chapter 1 under Standard Meal Allowance. ) A car allowance is an amount your employer gives you for the business use of your car.

Your employer should tell you what method of reimbursement is used and what records you must provide.

If you are an employer and you reimburse employee business expenses, how you treat this reimbursement on your employee's Form W-2 depends in part on whether you have an accountable plan. Reimbursements treated as paid under an accountable plan, as explained next, aren’t reported as pay. Reimbursements treated as paid under nonaccountable plans , as explained later, are reported as pay. See Pub. 15 (Circular E), Employer's Tax Guide, for information on employee pay.

Accountable Plans

To be an accountable plan, your employer's reimbursement or allowance arrangement must include all of the following rules.

Your expenses must have a business connection—that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer.

You must adequately account to your employer for these expenses within a reasonable period of time.

You must return any excess reimbursement or allowance within a reasonable period of time.

Adequate accounting and returning excess reimbursements are discussed later.

An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer.

The definition of reasonable period of time depends on the facts and circumstances of your situation. However, regardless of the facts and circumstances of your situation, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time.

You receive an advance within 30 days of the time you have an expense.

You adequately account for your expenses within 60 days after they were paid or incurred.

You return any excess reimbursement within 120 days after the expense was paid or incurred.

You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement.

If you meet the three rules for accountable plans, your employer shouldn’t include any reimbursements in your income in box 1 of your Form W-2. If your expenses equal your reimbursements, you don’t complete Form 2106. You have no deduction since your expenses and reimbursements are equal.

Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules. All reimbursements that fail to meet all three rules for accountable plans are generally treated as having been reimbursed under a nonaccountable plan (discussed later).

If you are reimbursed under an accountable plan, but you fail to return, within a reasonable time, any amounts in excess of the substantiated amounts, the amounts paid in excess of the substantiated expenses are treated as paid under a nonaccountable plan. See Reasonable period of time , earlier, and Returning Excess Reimbursements , later.

You may be reimbursed under your employer's accountable plan for expenses related to that employer's business, some of which would be allowable as employee business expense deductions and some of which would not. The reimbursements you receive for the nondeductible expenses don’t meet rule (1) for accountable plans, and they are treated as paid under a nonaccountable plan.

Your employer's plan reimburses you for travel expenses while away from home on business and also for meals when you work late at the office, even though you aren’t away from home. The part of the arrangement that reimburses you for the nondeductible meals when you work late at the office is treated as paid under a nonaccountable plan.

One of the rules for an accountable plan is that you must adequately account to your employer for your expenses. You adequately account by giving your employer a statement of expense, an account book, a diary, or a similar record in which you entered each expense at or near the time you had it, along with documentary evidence (such as receipts) of your travel, mileage, and other employee business expenses. (See Table 5-1 in chapter 5 for details you need to enter in your record and documents you need to prove certain expenses.) A per diem or car allowance satisfies the adequate accounting requirement under certain conditions. See Per Diem and Car Allowances , later.

You must account for all amounts you received from your employer during the year as advances, reimbursements, or allowances. This includes amounts you charged to your employer by credit card or other method. You must give your employer the same type of records and supporting information that you would have to give to the IRS if the IRS questioned a deduction on your return. You must pay back the amount of any reimbursement or other expense allowance for which you don’t adequately account or that is more than the amount for which you accounted.

Per Diem and Car Allowances

If your employer reimburses you for your expenses using a per diem or a car allowance, you can generally use the allowance as proof for the amount of your expenses. A per diem or car allowance satisfies the adequate accounting requirements for the amount of your expenses only if all the following conditions apply.

Your employer reasonably limits payments of your expenses to those that are ordinary and necessary in the conduct of the trade or business.

The allowance is similar in form to and not more than the federal rate (defined later).

You prove the time (dates), place, and business purpose of your expenses to your employer (as explained in Table 5-1 ) within a reasonable period of time.

You aren’t related to your employer (as defined next). If you are related to your employer, you must be able to prove your expenses to the IRS even if you have already adequately accounted to your employer and returned any excess reimbursement.

You are related to your employer if:

Your employer is your brother or sister, half brother or half sister, spouse, ancestor, or lineal descendant;

Your employer is a corporation in which you own, directly or indirectly, more than 10% in value of the outstanding stock; or

Certain relationships (such as grantor, fiduciary, or beneficiary) exist between you, a trust, and your employer.

The federal rate can be figured using any one of the following methods.

For per diem amounts:

The regular federal per diem rate.

The high-low rate.

For car expenses:

A fixed and variable rate (FAVR).

The regular federal per diem rate is the highest amount that the federal government will pay to its employees for lodging and M&IE (or M&IE only) while they are traveling away from home in a particular area. The rates are different for different localities. Your employer should have these rates available. You can also find federal per diem rates at GSA.gov/travel/plan-book/per-diem-rates .

The standard meal allowance is the federal M&IE rate. For travel in 2023, the rate for most small localities in the United States is $59 per day. Most major cities and many other localities qualify for higher rates. You can find this information at GSA.gov/travel/plan-book/per-diem-rates .

You receive an allowance only for M&IE when your employer does one of the following.

Provides you with lodging (furnishes it in kind).

Reimburses you, based on your receipts, for the actual cost of your lodging.

Pays the hotel, motel, etc., directly for your lodging.

Doesn’t have a reasonable belief that you had (or will have) lodging expenses, such as when you stay with friends or relatives or sleep in the cab of your truck.

Figures the allowance on a basis similar to that used in figuring your compensation, such as number of hours worked or miles traveled.

This is a simplified method of figuring the federal per diem rate for travel within the continental United States. It eliminates the need to keep a current list of the per diem rates for each city.

Under the high-low method, the per diem amount for travel during January through September of 2023 is $297 (which includes $74 for M&IE) for certain high-cost locations. All other areas have a per diem amount of $204 (which includes $64 for M&IE). For more information, see Notice 2022-44, which can be found at IRS.gov/irb/2022-41_IRB#NOT-2022-44 .

Effective October 1, 2023, the per diem rate for certain high-cost locations increased to $309 (which includes $74 for M&IE). The rate for all other locations increased to $214 (which includes $64 for M&IE). For more information, see Notice 2023-68, which can be found at IRS.gov/irb/2023-41_IRB#NOT-2023-68 , and Revenue Procedure 2019-48 at IRS.gov/irb/2019-51_IRB#REV-PROC-2019-48 .

The standard meal allowance is for a full 24-hour day of travel. If you travel for part of a day, such as on the days you depart and return, you must prorate the full-day M&IE rate. This rule also applies if your employer uses the regular federal per diem rate or the high-low rate.

You can use either of the following methods to figure the federal M&IE for that day.

For the day you depart, add 3 / 4 of the standard meal allowance amount for that day.

For the day you return, add 3 / 4 of the standard meal allowance amount for the preceding day.

Method 2: Prorate the standard meal allowance using any method you consistently apply in accordance with reasonable business practice. For example, an employer can treat 2 full days of per diem (that includes M&IE) paid for travel away from home from 9 a.m. of one day to 5 p.m. of the next day as being no more than the federal rate. This is true even though a federal employee would be limited to a reimbursement of M&IE for only 1½ days of the federal M&IE rate.

This is a set rate per mile that you can use to figure your deductible car expenses. For 2023, the standard mileage rate for the cost of operating your car for business use is 65.5 cents ($0.655) per mile.

This is an allowance your employer may use to reimburse your car expenses. Under this method, your employer pays an allowance that includes a combination of payments covering fixed and variable costs, such as a cents-per-mile rate to cover your variable operating costs (such as gas, oil, etc.) plus a flat amount to cover your fixed costs (such as depreciation (or lease payments), insurance, etc.). If your employer chooses to use this method, your employer will request the necessary records from you.

If your reimbursement is in the form of an allowance received under an accountable plan, the following facts affect your reporting.

Whether the allowance or your actual expenses were more than the federal rate.

If your allowance is less than or equal to the federal rate, the allowance won’t be included in box 1 of your Form W-2. You don’t need to report the related expenses or the allowance on your return if your expenses are equal to or less than the allowance.

However, if your actual expenses are more than your allowance, you can complete Form 2106. If you are using actual expenses, you must be able to prove to the IRS the total amount of your expenses and reimbursements for the entire year. If you are using the standard meal allowance or the standard mileage rate, you don’t have to prove that amount.

In April, a member of a reserve component of the Armed Forces takes a 2-day business trip to Denver. The federal rate for Denver is $278 ($199 lodging + $79 M&IE) per day. As required by their employer's accountable plan, they account for the time (dates), place, and business purpose of the trip. Their employer reimburses them $278 a day ($556 total) for living expenses. Their living expenses in Denver aren’t more than $278 a day.

Their employer doesn’t include any of the reimbursement on their Form W-2 and they don’t deduct the expenses on their return.

In June, a fee-basis local government official takes a 2-day business trip to Boston. Their employer uses the high-low method to reimburse employees. Because Boston is a high-cost area, they are given an advance of $297 (which includes $74 for M&IE) a day ($594 total) for their lodging and M&IE. Their actual expenses totaled $700.

Since their $700 of expenses are more than their $594 advance, they include the excess expenses when they itemize their deductions. They complete Form 2106 (showing all of their expenses and reimbursements). They must also allocate their reimbursement between their meals and other expenses as discussed later under Completing Form 2106 .

A fee-basis state government official drives 10,000 miles during 2023 for business. Under their employer's accountable plan, they account for the time (dates), place, and business purpose of each trip. Their employer pays them a mileage allowance of 40 cents ($0.40) a mile.

Because their $6,550 expense figured under the standard mileage rate (10,000 miles x 65.5 cents ($0.655) per mile) is more than their $4,000 reimbursement (10,000 miles × 40 cents ($0.40)), they itemize their deductions to claim the excess expense. They complete Form 2106 (showing all their expenses and reimbursements) and enter $2,550 ($6,550 − $4,000) as an itemized deduction.

If your allowance is more than the federal rate, your employer must include the allowance amount up to the federal rate under code L in box 12 of your Form W-2. This amount isn’t taxable. However, the excess allowance will be included in box 1 of your Form W-2. You must report this part of your allowance as if it were wage income.

If your actual expenses are less than or equal to the federal rate, you don’t complete Form 2106 or claim any of your expenses on your return.

However, if your actual expenses are more than the federal rate, you can complete Form 2106 and deduct those excess expenses. You must report on Form 2106 your reimbursements up to the federal rate (as shown under code L in box 12 of your Form W-2) and all your expenses. You should be able to prove these amounts to the IRS.

Sasha, a performing artist, lives and works in Austin. In July, the employer sent Sasha to Albuquerque for 4 days on business. The employer paid the hotel directly for Sasha’s lodging and reimbursed $80 a day ($320 total) for M&IE. Sasha’s actual meal expenses weren’t more than the federal rate for Albuquerque, which is $69 per day.

The employer included the $44 that was more than the federal rate (($80 − $69) × 4) in box 1 of Sasha’s Form W-2. The employer shows $276 ($69 a day × 4) under code L in box 12 of Form W-2. This amount isn’t included in income. Sasha doesn’t have to complete Form 2106; however, Sasha must include the $44 in gross income as wages (by reporting the total amount shown in box 1 of their Form W-2).

Another performing artist, Ari, also lives in Austin and works for the same employer as in Example 1 . In May, the employer sent Ari to San Diego for 4 days and paid the hotel directly for the hotel bill. The employer reimbursed Ari $75 a day for M&IE. The federal rate for San Diego is $74 a day.

Ari can prove that actual non-entertainment-related meal expenses totaled $380. The employer's accountable plan won’t pay more than $75 a day for travel to San Diego, so Ari doesn’t give the employer the records that prove that the amount actually spent was $380. However, Ari does account for the time (dates), place, and business purpose of the trip. This is Ari’s only business trip this year.

Ari was reimbursed $300 ($75 × 4 days), which is $4 more than the federal rate of $296 ($74 × 4 days). The employer includes the $4 as income on the employee’s Form W-2 in box 1. The employer also enters $296 under code L in box 12 of the employee’s Form W-2.

Ari completes Form 2106 to figure deductible expenses and enters the total of actual expenses for the year ($380) on Form 2106. Ari also enters the reimbursements that weren’t included in income ($296). Ari’s total deductible meals and beverages expense, before the 50% limit, is $96. Ari will include $48 as an itemized deduction.

Palmer, a fee-basis state government official, drives 10,000 miles during 2023 for business. Under the employer's accountable plan, Palmer gets reimbursed 70 cents ($0.70) a mile, which is more than the standard mileage rate. The total reimbursement is $7,000.

The employer must include the reimbursement amount up to the standard mileage rate, $6,550 (10,000 miles x 65.5 cents ($0.655) per mile), under code L in box 12 of the employee’s Form W-2. That amount isn’t taxable. The employer must also include $450 ($7,000 − $6,550) in box 1 of the employee's Form W-2. This is the reimbursement that is more than the standard mileage rate.

If the expenses are equal to or less than the standard mileage rate, Palmer wouldn’t complete Form 2106. If the expenses are more than the standard mileage rate, Palmer would complete Form 2106 and report total expenses and reimbursement (shown under code L in box 12 of their Form W-2). Palmer would then claim the excess expenses as an itemized deduction.

Returning Excess Reimbursements

Under an accountable plan, you are required to return any excess reimbursement or other expense allowances for your business expenses to the person paying the reimbursement or allowance. Excess reimbursement means any amount for which you didn’t adequately account within a reasonable period of time. For example, if you received a travel advance and you didn’t spend all the money on business-related expenses or you don’t have proof of all your expenses, you have an excess reimbursement.

Adequate accounting and reasonable period of time were discussed earlier in this chapter.

You receive a travel advance if your employer provides you with an expense allowance before you actually have the expense, and the allowance is reasonably expected to be no more than your expense. Under an accountable plan, you are required to adequately account to your employer for this advance and to return any excess within a reasonable period of time.

If you don’t adequately account for or don't return any excess advance within a reasonable period of time, the amount you don’t account for or return will be treated as having been paid under a nonaccountable plan (discussed later).

If you don’t prove that you actually traveled on each day for which you received a per diem or car allowance (proving the elements described in Table 5-1 ), you must return this unproven amount of the travel advance within a reasonable period of time. If you don’t do this, the unproven amount will be considered paid under a nonaccountable plan (discussed later).

If your employer's accountable plan pays you an allowance that is higher than the federal rate, you don’t have to return the difference between the two rates for the period you can prove business-related travel expenses. However, the difference will be reported as wages on your Form W-2. This excess amount is considered paid under a nonaccountable plan (discussed later).

Your employer sends you on a 5-day business trip to Phoenix in March 2023 and gives you a $400 ($80 × 5 days) advance to cover your M&IE. The federal per diem for M&IE for Phoenix is $69. Your trip lasts only 3 days. Under your employer's accountable plan, you must return the $160 ($80 × 2 days) advance for the 2 days you didn’t travel. For the 3 days you did travel, you don’t have to return the $33 difference between the allowance you received and the federal rate for Phoenix (($80 − $69) × 3 days). However, the $33 will be reported on your Form W-2 as wages.

Nonaccountable Plans

A nonaccountable plan is a reimbursement or expense allowance arrangement that doesn’t meet one or more of the three rules listed earlier under Accountable Plans .

In addition, even if your employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan.

Excess reimbursements you fail to return to your employer.

Reimbursement of nondeductible expenses related to your employer's business. See Reimbursement of nondeductible expenses , earlier, under Accountable Plans.

If you aren’t sure if the reimbursement or expense allowance arrangement is an accountable or nonaccountable plan, ask your employer.

Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay. Your employer will report the total in box 1 of your Form W-2.

You must complete Form 2106 and itemize your deductions to deduct your expenses for travel, transportation, or non-entertainment-related meals. Your meal and entertainment expenses will be subject to the 50% Limit discussed in chapter 2.

Your employer gives you $1,000 a month ($12,000 total for the year) for your business expenses. You don’t have to provide any proof of your expenses to your employer, and you can keep any funds that you don’t spend.

You are a performing artist and are being reimbursed under a nonaccountable plan. Your employer will include the $12,000 on your Form W-2 as if it were wages. If you want to deduct your business expenses, you must complete Form 2106 and itemize your deductions.

You are paid $2,000 a month by your employer. On days that you travel away from home on business, your employer designates $50 a day of your salary as paid to reimburse your travel expenses. Because your employer would pay your monthly salary whether or not you were traveling away from home, the arrangement is a nonaccountable plan. No part of the $50 a day designated by your employer is treated as paid under an accountable plan.

Rules for Independent Contractors and Clients

This section provides rules for independent contractors who incur expenses on behalf of a client or customer. The rules cover the reporting and substantiation of certain expenses discussed in this publication, and they affect both independent contractors and their clients or customers.

You are considered an independent contractor if you are self-employed and you perform services for a customer or client.

Accounting to Your Client

If you received a reimbursement or an allowance for travel, or gift expenses that you incurred on behalf of a client, you should provide an adequate accounting of these expenses to your client. If you don’t account to your client for these expenses, you must include any reimbursements or allowances in income. You must keep adequate records of these expenses whether or not you account to your client for these expenses.

If you don’t separately account for and seek reimbursement for meal and entertainment expenses in connection with providing services for a client, you are subject to the 50% limit on those expenses. See 50% Limit in chapter 2.

As a self-employed person, you adequately account by reporting your actual expenses. You should follow the recordkeeping rules in chapter 5 .

For information on how to report expenses on your tax return, see Self-employed at the beginning of this chapter.

Required Records for Clients or Customers

If you are a client or customer, you generally don’t have to keep records to prove the reimbursements or allowances you give, in the course of your business, to an independent contractor for travel or gift expenses incurred on your behalf. However, you must keep records if:

You reimburse the contractor for entertainment expenses incurred on your behalf, and

The contractor adequately accounts to you for these expenses.

If the contractor adequately accounts to you for non-entertainment-related meal expenses, you (the client or customer) must keep records documenting each element of the expense, as explained in chapter 5 . Use your records as proof for a deduction on your tax return. If non-entertainment-related meal expenses are accounted for separately, you are subject to the 50% limit on meals. If the contractor adequately accounts to you for reimbursed amounts, you don’t have to report the amounts on an information return.

If the contractor doesn’t adequately account to you for allowances or reimbursements of non-entertainment-related meal expenses, you don’t have to keep records of these items. You aren’t subject to the 50% limit on meals in this case. You can deduct the reimbursements or allowances as payment for services if they are ordinary and necessary business expenses. However, you must file Form 1099-MISC to report amounts paid to the independent contractor if the total of the reimbursements and any other fees is $600 or more during the calendar year.

How To Use Per Diem Rate Tables

This section contains information about the per diem rate substantiation methods available and the choice of rates you must make for the last 3 months of the year.

The Two Substantiation Methods

IRS Notices list the localities that are treated under the high-low substantiation method as high-cost localities for all or part of the year. Notice 2022-44, available at IRS.gov/irb/2022-41_IRB#NOT-2022-44 , lists the high-cost localities that are eligible for $297 (which includes $74 for meals and incidental expenses (M&IE)) per diem, effective October 1, 2022. For travel on or after October 1, 2022, all other localities within the continental United States (CONUS) are eligible for $204 (which includes $64 for M&IE) per diem under the high-low method.

Notice 2023-68, available at IRS.gov/irb/2023-41_IRB#NOT-2023-68 , lists the high-cost localities that are eligible for $309 (which includes $74 for M&IE) per diem, effective October 1, 2023. For travel on or after October 1, 2023, the per diem for all other localities increased to $214 (which includes $64 for M&IE).

Regular federal per diem rates are published by the General Services Administration (GSA). Both tables include the separate rate for M&IE for each locality. The rates listed for FY2023 at GSA.gov/travel/plan-book/per-diem-rates are effective October 1, 2022, and those listed for FY2024 are effective October 1, 2023. The standard rate for all locations within CONUS not specifically listed for FY2023 is $157 ($98 for lodging and $59 for M&IE). For FY2024, this rate increases to $166 ($107 for lodging and $59 for M&IE).

Transition Rules

The transition period covers the last 3 months of the calendar year, from the time that new rates are effective (generally, October 1) through December 31. During this period, you may generally change to the new rates or finish out the year with the rates you had been using.

If you use the high-low substantiation method, when new rates become effective (generally, October 1), you can either continue with the rates you used for the first part of the year or change to the new rates. However, you must continue using the high-low method for the rest of the calendar year (through December 31). If you are an employer, you must use the same rates for all employees reimbursed under the high-low method during that calendar year.

The new rates and localities for the high-low method are included each year in a notice that is generally published in mid to late September. You can find the notice in the weekly Internal Revenue Bulletin (IRB) at IRS.gov/IRB , or visit IRS.gov and enter “Special Per Diem Rates” in the search box.

New CONUS per diem rates become effective on October 1 of each year and remain in effect through September 30 of the following year. Employees being reimbursed under the per diem rate method during the first 9 months of a year (January 1–September 30) must continue under the same method through the end of that calendar year (December 31). However, for travel by these employees from October 1 through December 31, you can choose to continue using the same per diem rates or use the new rates.

The new federal CONUS per diem rates are published each year, generally early in September. Go to GSA.gov/travel/plan-book/per-diem-rates .

Completing Form 2106

For tax years beginning after 2017, the Form 2106 will be used by Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses. Due to the suspension of miscellaneous itemized deductions subject to the 2% floor under section 67(a), employees who do not fit into one of the listed categories may not use Form 2106.

This section briefly describes how employees complete Forms 2106. Table 6-1 explains what the employer reports on Form W-2 and what the employee reports on Form 2106. The instructions for the forms have more information on completing them.

Table 6-1. Reporting Travel, Nonentertainment Meal, Gift, and Car Expenses and Reimbursements

If you used a car to perform your job as an employee, you may be able to deduct certain car expenses. These are generally figured on Form 2106, Part II, and then claimed on Form 2106, Part I, line 1, column A.

If you claim any deduction for the business use of a car, you must answer certain questions and provide information about the use of the car. The information relates to the following items.

Date placed in service.

Mileage (total, business, commuting, and other personal mileage).

Percentage of business use.

After-work use.

Use of other vehicles.

Whether you have evidence to support the deduction.

Whether or not the evidence is written.

If you claim a deduction based on the standard mileage rate instead of your actual expenses, you must complete Form 2106, Part II, Section B. The amount on line 22 (Section B) is carried to Form 2106, Part I, line 1. In addition, on Part I, line 2, you can deduct parking fees and tolls that apply to the business use of the car. See Standard Mileage Rate in chapter 4 for information on using this rate.

If you claim a deduction based on actual car expenses, you must complete Form 2106, Part II, Section C. In addition, unless you lease your car, you must complete Section D to show your depreciation deduction and any section 179 deduction you claim.

If you are still using a car that is fully depreciated, continue to complete Section C. Since you have no depreciation deduction, enter zero on line 28. In this case, don’t complete Section D.

If you claim car rental expenses on Form 2106, line 24a, you may have to reduce that expense by an inclusion amount , as described in chapter 4. If so, you can show your car expenses and any inclusion amount as follows.

Figure the inclusion amount without taking into account your business-use percentage for the tax year.

Report the inclusion amount from (1) on Form 2106, Part II, line 24b.

Report on line 24c the net amount of car rental expenses (total car rental expenses minus the inclusion amount figured in (1)).

Show your transportation expenses that didn’t involve overnight travel on Form 2106, line 2, column A. Also include on this line business expenses you have for parking fees and tolls. Don’t include expenses of operating your car or expenses of commuting between your home and work.

Show your other employee business expenses on Form 2106, lines 3 and 4, column A. Don’t include expenses for nonentertainment meals on those lines. Line 4 is for expenses such as gifts, educational expenses (tuition and books), office-in-the-home expenses, and trade and professional publications.

Show the full amount of your expenses for nonentertainment business-related meals on Form 2106, line 5, column B. Include meals while away from your tax home overnight and other business meals. Enter 50% of the line 8, column B, meal expenses on line 9, column B.

If you are subject to the Department of Transportation's “hours of service” limits (as explained earlier under Individuals subject to hours of service limits in chapter 2), use 80% instead of 50% for meals while away from your tax home.

Enter on Form 2106, line 7, the amounts your employer (or third party) reimbursed you that weren’t reported to you in box 1 of your Form W-2. This includes any amount reported under code L in box 12 of Form W-2.

If you were reimbursed under an accountable plan and want to deduct excess expenses that weren’t reimbursed, you may have to allocate your reimbursement. This is necessary when your employer pays your reimbursement in the following manner.

Pays you a single amount that covers non-entertainment-related meals and/or entertainment, as well as other business expenses.

Doesn’t clearly identify how much is for deductible non-entertainment-related meals.

Your employer paid you an expense allowance of $12,000 this year under an accountable plan. The $12,000 payment consisted of $5,000 for airfare and $7,000 for non-entertainment-related meals, and car expenses. Your employer didn’t clearly show how much of the $7,000 was for the cost of deductible non-entertainment-related meals. You actually spent $14,000 during the year ($5,500 for airfare, $4,500 for non-entertainment-related meals, and $4,000 for car expenses).

Since the airfare allowance was clearly identified, you know that $5,000 of the payment goes in column A, line 7, of Form 2106. To allocate the remaining $7,000, you use the worksheet from the Instructions for Form 2106. Your completed worksheet follows.

Reimbursement Allocation Worksheet (Keep for your records.)

If you are a government official paid on a fee basis, a performing artist, an Armed Forces reservist, or a disabled employee with impairment-related work expenses, see Special Rules , later.

Your employee business expenses may be subject to either of the limits described next. They are figured in the following order on the specified form.

Certain non-entertainment-related meal expenses are subject to a 50% limit. Generally, entertainment expenses are nondeductible if paid or incurred after December 2017. If you are an employee, you figure this limit on line 9 of Form 2106. (See 50% Limit in chapter 2.)

Limitations on itemized deductions are suspended for tax years beginning after 2017 and before tax year January 2026, per section 68(g).

Special Rules

This section discusses special rules that apply only to Armed Forces reservists, government officials who are paid on a fee basis, performing artists, and disabled employees with impairment-related work expenses. For tax years beginning after 2017, they are the only taxpayers who can use Form 2106.

Armed Forces Reservists Traveling More Than 100 Miles From Home

If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging and M&IE) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. See Per Diem and Car Allowances , earlier, for more information.

You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; the Air National Guard of the United States; or the Reserve Corps of the Public Health Service.

If you have reserve-related travel that takes you more than 100 miles from home, you should first complete Form 2106. Then include your expenses for reserve travel over 100 miles from home, up to the federal rate, from Form 2106, line 10, in the total on Schedule 1 (Form 1040), line 12.

You can’t deduct expenses of travel that doesn’t take you more than 100 miles from home as an adjustment to gross income.

Certain fee-basis officials can claim their employee business expenses on Form 2106.

Fee-basis officials are persons who are employed by a state or local government and who are paid in whole or in part on a fee basis. They can deduct their business expenses in performing services in that job as an adjustment to gross income rather than as a miscellaneous itemized deduction.

If you are a fee-basis official, include your employee business expenses from Form 2106, line 10, in the total on Schedule 1 (Form 1040), line 12.

Expenses of Certain Performing Artists

If you are a performing artist, you may qualify to deduct your employee business expenses as an adjustment to gross income. To qualify, you must meet all of the following requirements.

During the tax year, you perform services in the performing arts as an employee for at least two employers.

You receive at least $200 each from any two of these employers.

Your related performing-arts business expenses are more than 10% of your gross income from the performance of those services.

Your adjusted gross income isn’t more than $16,000 before deducting these business expenses.

If you are married, you must file a joint return unless you lived apart from your spouse at all times during the tax year. If you file a joint return, you must figure requirements (1), (2), and (3) separately for both you and your spouse. However, requirement (4) applies to your and your spouse's combined adjusted gross income.

If you meet all of the above requirements, you should first complete Form 2106. Then you include your performing-arts-related expenses from Form 2106, line 10, in the total on Schedule 1 (Form 1040), line 12.

If you don’t meet all of the above requirements, you don’t qualify to deduct your expenses as an adjustment to gross income.

If you are an employee with a physical or mental disability, your impairment-related work expenses aren’t subject to the 2%-of-adjusted-gross-income limit that applies to most other employee business expenses. After you complete Form 2106, enter your impairment-related work expenses from Form 2106, line 10, on Schedule A (Form 1040), line 16, and identify the type and amount of this expense on the line next to line 16.

Impairment-related work expenses are your allowable expenses for attendant care at your workplace and other expenses in connection with your workplace that are necessary for you to be able to work.

You are disabled if you have:

A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed; or

A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working.

You can deduct impairment-related expenses as business expenses if they are:

Necessary for you to do your work satisfactorily;

For goods and services not required or used, other than incidentally, in your personal activities; and

Not specifically covered under other income tax laws.

You are blind. You must use a reader to do your work. You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. The reader's services are only for your work. You can deduct your expenses for the reader as business expenses.

You are deaf. You must use a sign language interpreter during meetings while you are at work. The interpreter's services are used only for your work. You can deduct your expenses for the interpreter as business expenses.

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away.

After receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return.

Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

Free File. This program lets you prepare and file your federal individual income tax return for free using software or Free File Fillable Forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options.

VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/VITA , download the free IRS2Go app, or call 800-906-9887 for information on free tax return preparation.

TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE or download the free IRS2Go app for information on free tax return preparation.

MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource. For more information, go to MilitaryOneSource ( MilitaryOneSource.mil/MilTax ).

Also, the IRS offers Free Fillable Forms, which can be completed online and then e-filed regardless of income.

Go to IRS.gov/Tools for the following.

The Earned Income Tax Credit Assistant ( IRS.gov/EITCAssistant ) determines if you’re eligible for the earned income credit (EIC).

The Online EIN Application ( IRS.gov/EIN ) helps you get an employer identification number (EIN) at no cost.

The Tax Withholding Estimator ( IRS.gov/W4App ) makes it easier for you to estimate the federal income tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

The First Time Homebuyer Credit Account Look-up ( IRS.gov/HomeBuyer ) tool provides information on your repayments and account balance.

The Sales Tax Deduction Calculator ( IRS.gov/SalesTax ) figures the amount you can claim if you itemize deductions on Schedule A (Form 1040).

Go to IRS.gov/Help : A variety of tools to help you get answers to some of the most common tax questions.

Go to IRS.gov/ITA : The Interactive Tax Assistant, a tool that will ask you questions and, based on your input, provide answers on a number of tax topics.

Go to IRS.gov/Forms : Find forms, instructions, and publications. You will find details on the most recent tax changes and interactive links to help you find answers to your questions.

You may also be able to access tax information in your e-filing software.

There are various types of tax return preparers, including enrolled agents, certified public accountants (CPAs), accountants, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:

Primarily responsible for the overall substantive accuracy of your return,

Required to sign the return, and

Required to include their preparer tax identification number (PTIN).

The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement.

Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our highest priority. We use these tools to share public information with you. Don’t post your social security number (SSN) or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, Spanish, and ASL.

Youtube.com/irsvideos .

Youtube.com/irsvideosmultilingua .

Youtube.com/irsvideosASL .

The IRS Video portal ( IRSVideos.gov ) contains video and audio presentations for individuals, small businesses, and tax professionals.

You can find information on IRS.gov/MyLanguage if English isn’t your native language.

The IRS is committed to serving taxpayers with limited-English proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and future accessibility products and services available in alternative media formats (for example, braille, large print, audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or account-related issues, go to IRS.gov/LetUsHelp .

Form 9000, Alternative Media Preference, or Form 9000(SP) allows you to elect to receive certain types of written correspondence in the following formats.

Standard Print.

Large Print.

Audio (MP3).

Plain Text File (TXT).

Braille Ready File (BRF).

Go to IRS.gov/DisasterRelief to review the available disaster tax relief.

Go to IRS.gov/Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to IRS.gov/OrderForms to place an order.

Download and view most tax publications and instructions (including the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/eBooks .

IRS eBooks have been tested using Apple's iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and eBook functionality may not operate as intended.

Go to IRS.gov/Account to securely access information about your federal tax account.

View the amount you owe and a breakdown by tax year.

See payment plan details or apply for a new payment plan.

Make a payment or view 5 years of payment history and any pending or scheduled payments.

Access your tax records, including key data from your most recent tax return, and transcripts.

View digital copies of select notices from the IRS.

Approve or reject authorization requests from tax professionals.

View your address on file or manage your communication preferences.

With an online account, you can access a variety of information to help you during the filing season. You can get a transcript, review your most recently filed tax return, and get your adjusted gross income. Create or access your online account at IRS.gov/Account .

This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS online account. For more information, go to IRS.gov/TaxProAccount .

The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, destroyed, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for more information on where to find a bank or credit union that can open an account online.

Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

The IRS doesn’t initiate contact with taxpayers by email, text messages (including shortened links), telephone calls, or social media channels to request or verify personal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

Go to IRS.gov/IdentityTheft , the IRS Identity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN .

Go to IRS.gov/Refunds .

Download the official IRS2Go app to your mobile device to check your refund status.

Call the automated refund hotline at 800-829-1954.

Payments of U.S. tax must be remitted to the IRS in U.S. dollars. Digital assets are not accepted. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

IRS Direct Pay : Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you.

Debit Card, Credit Card, or Digital Wallet : Choose an approved payment processor to pay online or by phone.

Electronic Funds Withdrawal : Schedule a payment when filing your federal taxes using tax return preparation software or through a tax professional.

Electronic Federal Tax Payment System : Best option for businesses. Enrollment is required.

Check or Money Order : Mail your payment to the address listed on the notice or instructions.

Cash : You may be able to pay your taxes with cash at a participating retail store.

Same-Day Wire : You may be able to do same-day wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to ensure that the electronic payments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick, easy, and faster than mailing in a check or money order.

Go to IRS.gov/Payments for more information about your options.

Apply for an online payment agreement ( IRS.gov/OPA ) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compromise program, go to IRS.gov/OIC .

Go to IRS.gov/Form1040X for information and updates.

Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns.

Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

You can now upload responses to all notices and letters using the Document Upload Tool. For notices that require additional action, taxpayers will be redirected appropriately on IRS.gov to take further action. To learn more about the tool, go to IRS.gov/Upload .

You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive communications, including notices and letters, in English until they are translated to your preferred language.

Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) Is Here To Help You

TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. TAS strives to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights .

The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:

Your problem is causing financial difficulty for you, your family, or your business;

You face (or your business is facing) an immediate threat of adverse action; or

You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

TAS has offices in every state, the District of Columbia, and Puerto Rico . To find your advocate’s number:

Go to TaxpayerAdvocate.IRS.gov/Contact-Us ;

Download Pub. 1546, The Taxpayer Advocate Service Is Your Voice at the IRS, available at IRS.gov/pub/irs-pdf/p1546.pdf ;

Call the IRS toll free at 800-TAX-FORM (800-829-3676) to order a copy of Pub. 1546;

Check your local directory; or

Call TAS toll free at 877-777-4778.

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, report it to TAS at IRS.gov/SAMS . Be sure to not include any personal taxpayer information.

LITCs are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. For more information or to find an LITC near you, go to the LITC page at TaxpayerAdvocate.IRS.gov/LITC or see IRS Pub. 4134, Low Income Taxpayer Clinic List , at IRS.gov/pub/irs-pdf/p4134.pdf .

Appendices A-1 through A-6 show the lease inclusion amounts that you may need to report if you first leased a passenger automobile (including a truck and van) in 2018 through 2023 for 30 days or more.

If any of these apply to you, use the appendix for the year you first leased the car. (See Leasing a Car in chapter 4.)

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• Grand Rapids/Muskegon
• Saginaw/Bay City
• All Michigan

Washtenaw County leaders overspent travel accounts. Not all have paid it back yet

• Updated: Mar. 31, 2024, 10:03 a.m. |
• Published: Mar. 31, 2024, 10:00 a.m.

The Washtenaw County Board of Commissioners discuss during a meeting at 220 N. Main St. on Wednesday, Jan. 18, 2023. Sydney Verlinde | MLive.com

• Lucas Smolcic Larson | [email protected]

WASHTENAW COUNTY, MI - A handful of Washtenaw County leaders surpassed their annual taxpayer-funded travel budgets by thousands of dollars, triggering a requirement they repay the county for the overages, newly-released reports show.

Select county commissioners traveled to conferences in Las Vegas, Austin, Cleveland and Mackinac Island in 2023, drawing from their yearly allotment from a “commissioner travel account” available for that purpose, according to the documents.

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8 passengers got stuck in port after a late return. What to do if you miss your cruise.

A group of Norwegian Cruise Line passengers was left behind after returning late to their ship in Africa.

undefined missed the last tender back to Norwegian Dawn while the ship was visiting the island nation of São Tomé and Príncipe on Wednesday, according to a spokesperson for the line. They were on a tour not organized through Norwegian.

Two of the guests, Jay and Jill Campbell, told South Carolina’s ABC 15 News their tour went longer than expected. When they returned, the ship was still in port, and the captain declined to let them board despite numerous attempts to reach Norwegian. At one point, they said, the island nation’s coast guard took them to the ship on a boat but told them to return to shore.

“The captain could have made an easy decision to turn one of the tender boats back, pick us up, safely load us, and then go on the way," Jay Campbell told the outlet.

'I just felt so helpless': Carnival Sunrise cruise ship faces flooding

“When the guests did not return to the vessel at the all aboard time, their passports were delivered to the local port agents to retrieve when they returned to the port, as per the regular protocol,” the Norwegian spokesperson said in an emailed statement. “Our team has been working closely with the local authorities to understand the requirements and necessary visas needed for the guests to rejoin the ship at the next available port of call.”

Since then, the passengers have been scrambling to catch up to the cruise. Here’s what to do if you get stranded during a stop and how to minimize the chance of being left behind.

What happens if I don’t get back to my cruise in time?

Cruise lines warn guests that they may get stuck if they don’t return to the ship by the stated all-aboard time.

“While this is a very unfortunate situation, guests are responsible for ensuring they return to the ship at the published time, which is communicated broadly over the ship’s intercom, in the daily print communication and posted just before exiting the vessel,” the Norwegian spokesperson said.

Cruise ships are on tight schedules while in port, said Joanna Kuther, a New York City-based travel agent and owner of Port Side Travel Consultants. “So if they have to leave at a certain time, they have to leave at that time,” she said. “It could be that there's another (ship) coming in. It could be (that) people aren't going to be there to be working on the pier.”

The Campbells told ABC 15 News that they traveled through six countries for 15 hours to reach Gambia, where the ship was due to stop on Monday. However, the vessel was unable to dock due to low tides. Norwegian said it made the change “due to adverse weather conditions, as well as tidal restrictions that require specific timing for safe passage.”

“While we share in our guests’ disappointment, this modification was made with great consideration for their safety and that of our crew, which is our top priority,” the spokesperson added.

The cruise line authorized them to rejoin the ship in Dakar, Senegal, on Tuesday.

Kuther recommended guests who miss their all-aboard time contact the cruise line to let them know, and reach out to their travel agent – if they have one – who can help handle the logistics. She said the nearest U.S. embassy may also be able to assist them.

Are travelers responsible for added expenses?

Travelers who do not board their ship in time are generally responsible for getting themselves to the next port of call, according to Kuther.

Travel insurance won't be much good in that scenario, either.

"Typically travel delay coverage/missed connection coverage is due to a delay of a common carrier such as an airline delay or cancellation for a covered reason which causes you to miss your cruise/tour departure," Meghan Walch, Director of Product at InsureMyTrip, said in an email. "An excursion supplier not getting you back to your cruise in time is typically not covered."

The Norwegian spokesperson said the cruise line is reimbursing the eight guests for their travel expenses from Banjul, Gambia, to Dakar, but Kuther stressed that kind of compensation is “definitely the exception to the rule.”

How to avoid getting stranded

When choosing a shore excursion, Kuther said it’s safest to book through the cruise line or with another vendor that guarantees to get passengers back to the ship on time or to the next port. Travel agents can help guests find those options, or they can ask operators about their policies directly when booking.

Just in case something does go wrong, travelers should bring a credit card or debit card so they have a way to cover any costs they might incur. Kuther typically recommends just bringing an ID “because you don’t want to be carrying around your passport,” but if travelers are going on a private excursion without that kind of guarantee, it’s a different story.

“You probably should have your passport with you because you're going to need it to get on a flight to get to the next port, especially if it's in a different country,” she said.

At the very least, it’s a good idea for travelers to have a photo of their passport on hand, and share a copy with someone back home who is easily reachable.

Story continues below.

Cruise insurance: Should you buy it through a cruise line? Maybe not, experts say

She also recommended they make sure their phone or watch is set to ship time rather than the time of the destination, which may be different (the all-aboard time will be on ship time). “So many people get confused with that,” Kuther said.

To be safe, she suggested guests get back to the ship an hour early if they’re exploring on their own or on a self-booked excursion in case they hit traffic or face other issues.

“It's one of those things like, it's not a problem until it's a problem,” Kuther said. She urged travelers not to expect the ship to wait. “If they can, I'm sure they will, but I would never tell someone, ‘Don’t worry about it.’”

Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at [email protected]