40 Business Expense Statistics (2026)

Business Expense SpreadsheetPublished Updated

Compare industry expenses, cost pressures and travel benchmarks, with the original sources beside every finding.

Reported deductions · 2023
$1.687tn
US nonfarm sole-proprietor deductions, rounded; +0.9% nominal change from 2022. (IRS, March 2026)
Deductions per $100 of receipts · 2023
$81.78
Calculated ratio of national totals; +$1.43 per $100 versus 2022. (IRS, March 2026)
Nonfarm sole-proprietor returns · 2023
31.126m
US returns, rounded; +0.5% from 2022. (IRS, March 2026)
The largest reported expense categoriesUS nonfarm sole proprietorships, tax year 2023 · nominal USD billions, rounded
Six largest Schedule C expense categories in 2023Cost of sales and operations, total: 559.99 billion dollars; Other business expenses: 203.03 billion dollars; Car and truck expenses: 150.25 billion dollars; Salaries and wages: 121.80 billion dollars; Contract labor: 113.58 billion dollars; Supplies: 79.35 billion dollars. All reported categories are available in the table below. $0bn$200bn$400bn$600bn Cost of sales & operations$559.99Other business expenses$203.03Car & truck$150.25Salaries & wages$121.80Contract labor$113.58Supplies$79.35 Cost of sales & operations$559.99bnOther business expenses$203.03bnCar & truck$150.25bnSalaries & wages$121.80bnContract labor$113.58bnSupplies$79.35bn $0bn$200bn$400bn$600bn

Source: IRS Statistics of Income, 2023 income statements. Tax deductions include cost of sales; they are not a recommended operating budget.

Key takeaways

  • US nonfarm sole proprietorships reported approximately $1.687 trillion in total business deductions for tax year 2023, rounded from the IRS total. (IRS, March 2026)
  • US nonfarm sole proprietorships reported a calculated $81.78 in deductions per $100 of receipts in tax year 2023, based on the IRS aggregate totals and rounded to cents. (IRS, March 2026)
  • In the 2025 US Small Business Credit Survey, 73% of small employer firms reported rising goods, services or wage costs as a financial challenge in the prior 12 months. (Federal Reserve Banks, March 2026)
  • In Intuit QuickBooks’ 2026 US small-business late-payments report, 59% of businesses had invoices overdue by at least 30 days. (Intuit QuickBooks, July 2026)
  • US private-industry employer compensation averaged $46.89 per hour worked in June 2026, with benefits accounting for 30.0% of that total. (BLS, September 2026)
  • The IRS optional US business standard mileage rate is 76 cents per mile for qualifying travel from July 1 through December 31, 2026. (IRS, July 2026)

How do expenses differ across sole-proprietor industries?

The industry comparison covers tax-reported US nonfarm sole proprietorships; the Census figures describe a separate, broader population of businesses without paid employees.

Download both years · CSV

All 19 IRS industry rows · 2023. Highest deductions per $100 of receipts: accommodation/food services/drinking places ($98.25); lowest: professional/scientific/technical services ($60.36).

Business receipts and deductions by industry · 2023
Accommodation, food services, and drinking places738,48184.8183.33$98.25
Administrative and support and waste management and remediation services3,159,026119.2795.06$79.70
Agriculture, forestry, hunting, and fishing356,47630.0029.19$97.31
Arts, entertainment, and recreation1,784,32062.9349.47$78.61
Construction3,368,860382.52325.92$85.20
Educational services862,50216.8111.90$70.78
Finance and insurance708,558121.1796.80$79.89
Health care and social assistance2,468,353147.5096.26$65.26
Information474,62816.6212.68$76.26
Manufacturing417,44046.1642.80$92.72
Mining86,84812.4410.60$85.19
Other services4,066,467164.78133.64$81.10
Professional, scientific, and technical services3,912,417250.23151.04$60.36
Real estate and rental and leasing1,511,411109.0282.83$75.97
Retail trade2,276,668199.49191.29$95.89
Transportation and warehousing3,922,574200.08184.03$91.98
Unclassified establishments521,88522.3019.87$89.10
Utilities31,1741.871.69$90.53
Wholesale trade (merchant wholesalers)457,82275.2168.92$91.63

Source: IRS 2023 income statements, released March 2026. All industries, with and without net income. Values retain the IRS totals; industry ratios are calculated from aggregate receipts and deductions. Amounts are nominal; the source notes that detail may not add to totals.

Explore all 25 reported expense categories
Download categories · CSV
National deduction categories · 2023
Cost of sales and operations, total559.99
Other business expenses203.03
Car and truck expenses150.25
Salaries and wages121.80
Contract labor113.58
Supplies79.35
Depreciation77.90
Rent paid on other business property51.40
Utilities46.00
Repairs33.69
Insurance30.15
Commissions27.76
Taxes paid26.53
Travel25.90
Office expenses25.18
Advertising expenses24.29
Legal and professional services20.85
Meals deducted16.93
Rent paid on machinery and equipment16.90
Home office business deductions, total14.35
Other interest paid on business indebtedness10.27
Mortgage interest4.86
Employee benefit programs3.72
Pension and profit-sharing plans1.63
Depletion0.98

All 25 categories shown. The selected tax year also applies to this table.

Keep the two statistical populations separate
PopulationPeriodWhat the figures describe
IRS Schedule C2023Nonfarm sole proprietorship returns, with and without net income
Census nonemployers2024Establishments without paid employees, across legal forms
  • US nonfarm sole proprietorships reported approximately $1.687 trillion in total business deductions for tax year 2023, rounded from the IRS total. (IRS, March 2026)
  • US nonfarm sole proprietorships reported a calculated $81.78 in deductions per $100 of receipts in tax year 2023, based on the IRS aggregate totals and rounded to cents. (IRS, March 2026)
  • Across the IRS industry groups for tax year 2023, calculated US sole-proprietor deductions ranged from $60.36 to $98.25 per $100 of receipts, from professional/scientific/technical services to accommodation/food services/drinking places. (IRS, March 2026)
  • The United States had 31,985,874 nonemployer establishments in 2024, including legal forms beyond sole proprietorships. (U.S. Census Bureau, September 2026)
  • US nonemployer establishments reported approximately $1.861 trillion in receipts in 2024, rounded from the Census total across legal forms. (U.S. Census Bureau, September 2026)

Choose labels for your own records with the business expense category guide.

Which costs and cash-flow pressures trouble small firms?

These surveys use different populations and questions. Their percentages are separate observations, and multiple financial challenges can apply to the same business.

Which costs and cash-flow pressures trouble small firms
SurveyReference periodQuestion / population
Federal Reserve Banks2025 surveyFinancial challenges in the prior 12 months; employer firms with 1–499 employees
NFIBSeptember 2026NFIB member business owners; single biggest problem and operating decisions
U.S. Chamber / MetLifeQ3 2026Small-business owners and operators; biggest challenges
  • In the 2025 US Small Business Credit Survey, 73% of small employer firms reported rising goods, services or wage costs as a financial challenge in the prior 12 months. (Federal Reserve Banks, March 2026)
  • In the 2025 US Small Business Credit Survey, 54% of small employer firms reported difficulty paying operating expenses in the prior 12 months. (Federal Reserve Banks, March 2026)
  • In the 2025 US Small Business Credit Survey, 50% of small employer firms reported uneven cash flow, including collecting receivables, as a financial challenge in the prior 12 months. (Federal Reserve Banks, March 2026)
  • Among US small employer firms experiencing financial challenges in the 2025 Small Business Credit Survey, 54% used personal funds in response during the prior 12 months. (Federal Reserve Banks, March 2026)
  • Among US small employer firms that sought financing in the 2025 Small Business Credit Survey, 56% sought it to meet operating expenses. (Federal Reserve Banks, March 2026)
  • Among US small employer firms borrowing from online lenders in the 2025 Small Business Credit Survey, 60% reported borrowing costs higher than expected. (Federal Reserve Banks, March 2026)
  • In NFIB’s September 2026 US membership survey, 6% of owners named labor costs as their single most important business problem. (NFIB, accessed October 2026)
  • A seasonally adjusted net 28% of US small-business owners in NFIB’s September 2026 survey reported raising compensation. (NFIB, accessed October 2026)
  • The average short-maturity loan interest rate reported in NFIB’s September 2026 US small-business survey was 8.2%. (NFIB, accessed October 2026)
  • In NFIB’s September 2026 US survey, 51% of small-business owners reported capital outlays in the previous six months. (NFIB, accessed October 2026)
  • In the Q3 2026 Justworks and U.S. Chamber Small Business Index, 54% of small businesses cited inflation as their biggest concern. (U.S. Chamber of Commerce, September 2026)
  • In the Q3 2026 Justworks and U.S. Chamber Small Business Index, 24% of small businesses cited revenue as a top challenge. (U.S. Chamber of Commerce, September 2026)
  • In the Q3 2026 Justworks and U.S. Chamber Small Business Index, 14% of small businesses cited affording employee benefits or healthcare as a top challenge. (U.S. Chamber of Commerce, September 2026)
  • In the Q3 2026 Justworks and U.S. Chamber Small Business Index, 29% of US small businesses reported spending increased time or resources on compliance. (U.S. Chamber of Commerce, September 2026)

How are small businesses funding their operations?

Credit use, new financing applications and cash-flow comfort answer different questions; the two surveys are not one combined population.

How are small businesses funding their operations
MeasurePopulation and periodShare
No outstanding debt2025 SBCS small employer firms31%
Used a personal guarantee to secure debt2025 SBCS small employer firms with debt59%
Applied for financing in prior 12 months2025 SBCS small employer firms60%
Comfortable with cash flowQ3 2026 Chamber small businesses72%

How do late payments affect expense cash flow?

Intuit’s report combines survey research on US small businesses; the balance owed is a conditional average among businesses with unpaid invoices.

How do late payments affect expense cash flow
Measure2026 report finding
Invoices overdue by at least 30 days59% of businesses
Processing delays create critical/moderate cash-flow gaps49% of owners
Delayed payments to suppliers / contractors / vendors42% of businesses
  • In Intuit QuickBooks’ 2026 US small-business late-payments report, 59% of businesses had invoices overdue by at least 30 days. (Intuit QuickBooks, July 2026)
  • US businesses with unpaid invoices were owed an average of $17.7K in Intuit QuickBooks’ 2026 late-payments report. (Intuit QuickBooks, July 2026)
  • In Intuit QuickBooks’ 2026 US small-business late-payments report, 49% of owners said standard payment-processing times caused critical or moderate cash-flow gaps. (Intuit QuickBooks, July 2026)
  • In Intuit QuickBooks’ 2026 US small-business late-payments report, 59% of businesses paid extra fees in the previous year to access money they had already earned. (Intuit QuickBooks, July 2026)
  • In Intuit QuickBooks’ 2026 US small-business late-payments report, 42% of businesses said outside pressures delayed payments to their own contractors, suppliers or vendors. (Intuit QuickBooks, July 2026)

How much of employee compensation is benefits?

BLS measures employer cost per hour worked across private industry; this is a national benchmark rather than a small-firm wage quote.

How much of employee compensation is benefits
June 2026 private-industry componentUSD per hour workedShare
Wages and salaries$32.8270.0%
Benefits$14.0730.0%
Total compensation$46.89100%
  • US private-industry employer compensation averaged $46.89 per hour worked in June 2026, with benefits accounting for 30.0% of that total. (BLS, September 2026)
  • In the Q3 2026 Justworks and U.S. Chamber Small Business Index, 75% of US small businesses reported investing in employee training or growth opportunities. (U.S. Chamber of Commerce, September 2026)

What are the current travel and vehicle-cost benchmarks?

Government allowances, modeled ownership costs and actual private-employer reimbursement are different measures. Choose rates for the travel date and the applicable policy.

What are the current travel and vehicle-cost benchmarks
ReferencePeriod / scopeBenchmark
IRS business mileage1 July–31 December 202676¢ per mile
GSA standard CONUS lodgingFY 2027: 1 October 2026–30 September 2027$113 per night
GSA CONUS meals and incidentalsFY 2027$68–$92 per day; standard $68
AAA new-vehicle ownership2026 model: five years and 75,000 miles$12,863 per year
  • The IRS optional US business standard mileage rate is 76 cents per mile for qualifying travel from July 1 through December 31, 2026. (IRS, July 2026)
  • GSA’s standard CONUS lodging allowance is $113 per night for federal official travel in fiscal year 2027, from October 1, 2026 through September 30, 2027. (GSA, August 2026)
  • GSA’s CONUS meals-and-incidental-expense tiers run from $68 to $92 per day in fiscal year 2027, with a standard rate of $68. (GSA, August 2026)
  • AAA’s 2026 US analysis estimated average new-vehicle ownership and operating costs of $12,863 per year over five years and 75,000 miles. (AAA, September 2026)
  • Depreciation averaged $4,422 per year in AAA’s 2026 US new-vehicle ownership-cost analysis. (AAA, September 2026)
  • In AAA’s 2026 US vehicle-category comparison, half-ton pickups cost $1.10 per mile, while small sedans cost a calculated 62 cents per mile using AAA’s reported 48-cent gap. (AAA, September 2026)
  • EV charging costs were approximately 66%–70% lower than gasoline costs across the selected vehicle categories in AAA’s 2026 US comparison, without implying lower total ownership costs. (AAA, September 2026)

Apply the dated rates to your own log with the mileage reimbursement calculator.

What does the evidence say about expense-claim controls?

ACFE describes investigated occupational-fraud cases worldwide, rather than the probability that a US business will suffer fraud. Controls are associated with outcomes; the study does not prove causation.

What does the evidence say about expense-claim controls
ACFE 2026 measureFindingPopulation
Expense-reimbursement schemes13% of cases; median loss $36,000Investigated occupational-fraud cases worldwide
Management review55% lower median loss with the controlCases with versus without management review
Organizations with fewer than 100 employeesMedian loss $126,000Investigated cases in this size band worldwide
  • Expense-reimbursement schemes appeared in 13% of investigated cases and had a median loss of $36,000 in ACFE’s 2026 global occupational-fraud report. (ACFE, May 2026)
  • Management review was associated with 55% lower median fraud losses in ACFE’s 2026 global investigated-case study, comparing cases with and without that control. (ACFE, May 2026)
  • Organizations with fewer than 100 employees had a median occupational-fraud loss of $126,000 per investigated case in ACFE’s 2026 global report. (ACFE, May 2026)

Keep the purpose, receipt reference and approval together in the expense report builder.

Cite this page

Business Expense Spreadsheet. “40 Business Expense Statistics (2026): Costs, Cash Flow & Industry Data.” Updated 31 October 2026. https://businessexpensespreadsheet.com/how-to-keep-track-of-business-expenses/business-expense-statistics/

Our industry and category compilation is available under CC BY 4.0; credit this page and retain the original publishers’ source references.

Methods and limitations

We checked 51 candidate figures and kept 40, using original government releases, trade-body research and the manufacturer’s own survey publication. Repeated year, category and industry values stay in tables.

The IRS compilation covers every top-level industry row and reported expense category in its nonfarm sole-proprietor income statements for 2022 and 2023. Ratios use aggregate receipts and deductions; they describe tax reporting, not a typical business budget or allowable deductions for an individual reader. Census nonemployers, employer surveys and personal-vehicle estimates have different populations and are kept separate.

Survey responses are reported experiences, including the Federal Reserve’s weighted convenience sample and NFIB’s membership sample. The Chamber poll covers businesses with up to 500 employees and excludes sole proprietorships. Intuit combines two surveys; each finding keeps the denominator described by its report. ACFE covers investigated cases worldwide and cannot estimate fraud prevalence at US businesses. AAA models new-vehicle ownership and changed its method in 2026, so we do not calculate a year-on-year increase.

Figures were checked on 31 October 2026. The next full review is due 31 January 2027; travel rates will also be checked before January travel, and the BLS release will be rechecked when the next compensation report is published. Send a correction with the figure and source through our contact form.

Sources