Key takeaways
- Under IRS Publication 463, you need a receipt for every lodging expense, whatever the amount. The $75 threshold for other travel costs doesn’t apply.
- Room rate and lodging taxes are deductible together. Parking and laundry are deductible as travel costs, room service as a 50% meal, and spa or movie charges not at all.
- The FY2027 GSA standard lodging rate is $113 a night, but self-employed people must deduct actual lodging costs.
- An assignment expected to last more than a year is indefinite, and lodging there stops being a travel expense.
What is a lodging expense?
Lodging is the cost of somewhere to sleep when business keeps you away from home overnight: a hotel, motel, short-term rental or corporate apartment. It includes the nightly rate plus the taxes and mandatory fees that come with it. For taxes, lodging is one of the main travel expenses, and it only counts when you are away from your tax home long enough to need sleep or rest.
Who holds the bill decides what happens next. An employee hands the folio to the employer for reimbursement. A freelancer or business owner deducts it on their own return. Either way, the same question comes up at checkout: which charges are business, and which are personal?
Snap hotel bills and track lodging costs on the go with the Manage Receipt app.
What’s deductible on a hotel folio
A hotel folio is the itemized bill you get when you check out. It lists every charge by night and type. Here is a typical three-night business stay:
- 1Hotel name, location and dates. The IRS needs these for the folio to count as a proper receipt.
- 2Room rate. Fully deductible for the nights your business requires.
- 3Room and occupancy taxes. Part of the lodging cost, so deductible in full.
- 4Parking and laundry. Not lodging, but deductible travel costs.
- 5Room service. A meal, so the 50% meal limit applies.
- 6Spa and movies. Personal, not deductible.
| Charge | Amount | Treated as | Deductible |
|---|---|---|---|
| Room, 3 nights | $477.00 | Lodging | $477.00 |
| Room tax | $71.55 | Lodging | $71.55 |
| Valet parking | $105.00 | Travel | $105.00 |
| Laundry | $24.00 | Travel | $24.00 |
| Room service dinner | $42.80 | Meal (50%) | $21.40 |
| Spa and movie | $74.99 | Personal | $0.00 |
| Total | $795.34 | $698.95 |
If a spouse or friend joins you for personal reasons, you can deduct only what a single room would have cost, not the full double rate. Ask the front desk for the single rate and note it on the folio.
Receipt requirements
Lodging is the one travel cost with no small-amount exception. Under IRS Publication 463, you need documentary evidence for every lodging expense. The $75 threshold that applies to other travel and meal costs doesn’t apply to hotels.
The card slip isn’t enough, because it shows only a total. Keep the itemized folio. On its own, a hotel receipt supports your claim when it shows:
- The name and location of the hotel
- The dates you stayed
- Separate amounts for the room, taxes, meals, phone and other charges
Short-term rentals work the same way. Save the booking confirmation that breaks out the nightly rate, cleaning fee, service fee and taxes, plus proof of payment. Add a note with the business purpose. An itemized receipt also makes it easy for an employer to strip out personal charges before reimbursing.
Lodging and per diem
Employers that use per diem pay a set nightly lodging allowance, usually based on GSA rates. For FY2027 (October 1, 2026 to September 30, 2027), the standard rate in the continental US is $113 a night, with higher rates in many cities. GSA lodging rates don’t include taxes; federal travelers claim lodging taxes separately. Many private employers still ask for the folio, to confirm you actually stayed overnight.
Self-employed people can’t use a per diem rate for lodging. They can use the federal M&IE rate for meals, but hotels must be deducted at actual cost, with receipts. If you freelance, the folio is the deduction.
Extended stays
Long projects raise a different question: are you still traveling? IRS Publication 463 draws the line at one year.
- Temporary assignment. Work at one location that is realistically expected to last, and does last, one year or less. Lodging stays deductible as a travel expense.
- Indefinite assignment. Work expected to last more than a year. That location becomes your new tax home, and lodging there is a personal living cost, even if the job ends early.
- Changed expectations. If a short job is extended past a year, it’s treated as temporary until the date your expectations changed, and indefinite after that.
For long temporary stays, an extended-stay hotel or furnished monthly rental is often cheaper than a nightly rate. Keep the lease, the monthly receipts and a record of the assignment’s expected end date. If you have no regular home that you keep paying for, you may not have a tax home to travel away from, and lodging isn’t deductible at all.
Every folio line, sorted once
Scan the hotel folio at checkout and Manage Receipt reads the line items, not just the total. Room, taxes, room service and parking can go to their own categories, while personal extras stay visible but off your claim. The folio is then attached to the trip’s expense report as the proof every lodging claim needs.
Explore AI Expense ReportsFrequently asked questions
Do I need a receipt for hotel stays?
Yes, always. The IRS requires documentary evidence for every lodging expense, whatever the amount. The best record is the itemized folio showing the hotel name and location, your dates and separate amounts for the room, taxes and extras. A card slip showing only the total is not enough on its own.
Is hotel tax deductible?
Yes, when the stay itself is deductible. Room, occupancy and other lodging taxes are part of the cost of lodging, so you deduct or claim them along with the room rate. Taxes on personal charges, such as a spa visit, follow those charges and aren’t deductible.
Can I deduct an Airbnb on a business trip?
Yes. A short-term rental is a lodging expense just like a hotel, as long as the trip requires an overnight stay away from your tax home. Keep the booking confirmation showing the nightly rate, cleaning and service fees and taxes, plus proof of payment and a note of the business purpose.
Can I deduct the hotel if my spouse comes along?
Only the business part. If your spouse travels for personal reasons, you can deduct what a single room would have cost, not the full rate for two. Ask the hotel for its single-occupancy rate and keep that with the folio. Your spouse’s meals and flights aren’t deductible.