Guide for the United States
Deducting Tesla charging costs for business
Charging is cheaper than fuel, so it is easy to forget that it can matter at tax time. Whether charging costs are deductible depends on which method you use for your car. Here is how the two methods differ and what to record.
Reviewed October 7, 2026
Standard mileage rate: charging is already included
If you use the standard mileage rate, electricity is part of what the rate is meant to cover. You do not add your charging bills on top. In this case what you need is a good mileage log, not receipts for kilowatt hours.
Actual expenses: charging counts in proportion to business use
If you use actual expenses, the energy you used for business driving can be part of your costs, together with insurance, repairs and depreciation. You deduct the business share, which is business miles divided by total miles.
For public charging, keep the receipt or the invoice from the network. For home charging, work out the energy that went into the car and multiply it by your electricity price. Your Tesla records the energy added in every session, so you do not need a separate meter to know the quantity.
- Date, place and energy added in kWh for each session
- Price paid, or your home tariff for home sessions
- Business miles and total miles for the year, to get the business share
Which method is better?
That depends on your car, your mileage and your history of using the car for business. An electric car has low running costs per mile, so the standard rate often looks generous, but the actual expense method can win for an expensive car with high depreciation. Run both numbers for your own year before you choose, and ask a tax professional if you are unsure.
Common questions
Can I deduct home charging for my Tesla?
With actual expenses, the business share of the electricity used to charge the car can be part of your costs. With the standard mileage rate, electricity is already included in the rate.
Do I need a separate meter for home charging?
Not to know the quantity. Your Tesla reports the energy added in each charging session, which you can multiply by your electricity price. Keep your records consistent.
What should I record for each charge?
The date, the place, the kWh added and the price paid or your home tariff.
This guide describes recordkeeping, not an individual tax determination. Which method you may use depends on your circumstances. Check with a tax professional. Sources: IRS Topic 510, business use of car, IRS Publication 463.