Is SEO Considered a Business Write Off?
Yes, SEO is a fully tax-deductible business expense in both Canada and the United States. When you write off SEO as a business expense, the IRS and CRA classify SEO services as ordinary and necessary marketing expenses, making them 100% deductible in the same year.
How to Write Off SEO Expenses: Tax Deductions Explained
When you write off SEO expenses, you reduce your taxable income dollar-for-dollar. For example, if you spend $3,000 per month on SEO services ($36,000 annually) and your tax rate is 30%, you save $10,800 in taxes. This means your actual cost is only $25,200 after the tax deduction, and over 3.3 years, you get to keep the equivalent of 1 year of marketing services.
“It’s Not About How Much Money You Make. It’s About How Much Money You Keep”
Robert Kiyosaki, Rich Dad Poor Dad
What SEO Expenses Are Deductible?
SEO services that are a deductible marketing expense include:
- SEO consulting and strategy services
- Content creation and optimization
- Technical SEO audits and implementation
- Link building campaigns
- Local SEO services
- SEO tools and software subscriptions
Your accountant can confirm the specific deductions available to your business.
Why Writing Off SEO Matters: Benefits and Value
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SEO Tax Savings Calculator
Visually see the amount of money you save when you write off SEO services. SEO Costs below are based on our premium SEO packages.
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| Annual SEO Expense | |
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| Expense After Tax Savings |
Is SEO Tax Deductible in Canada? CRA Rules
According to the Canada Revenue Agency (CRA), businesses—including sole proprietorships and partnerships—may deduct “reasonable expenses” incurred to earn business income, covering marketing, promotion and online advertising costs. SEO falls squarely into that category under marketing and advertising expenses.
Is SEO Tax Deductible in the U.S.? IRS Rules
In the U.S., businesses—including sole proprietors, LLCs, and corporations—can also deduct “ordinary and necessary” expenses incurred in the course of doing business, which includes marketing, advertising, and digital services like SEO.
| Location | Governing Body | SEO Classification | Deductibility Status |
|---|---|---|---|
| Canada | CRA | Advertising / Marketing | 100% deductible (same year) |
| United States | IRS (§162a) | Ordinary & Necessary Advertising | 100% deductible (same year) |
How to Write Off SEO as A Business Expense
Here’s a step-by-step guide for writing off the cost of SEO marketing as a business expense in both Canadian and U.S.
1. Categorize Your SEO Spend Properly
Put it under “Advertising and promotion” or “Professional services” in your bookkeeping.
2. Keep Detailed Records
Save invoices, contracts, reports and receipts from SEO agencies or freelancers.
3. Claim SEO Expenses
Canada (CRA Rules)
For Canadian businesses, SEO services are an advertising expense deduction when they directly promote your business and generate revenue.
Sole proprietors & partnerships: Deduct on Form T2125, line 8521 “Advertising.”
Corporations: Record as an operating expense on the company’s income statement to reduce taxable income.
United States (IRS Rules)
In the U.S., SEO costs are deductible as advertising expenses when they are ordinary, necessary, and directly tied to business promotion.
Sole proprietors & single-member LLCs: Claim on Schedule C (Form 1040), line 8 “Advertising.”
Corporations (C-corps, S-corps): Deduct as ordinary business expenses on Form 1120 or Form 1120-S under “Advertising.”
4. In Canada, Report Input Tax Credits (if GST/HST‑Registered)
If you’re charged GST/HST on SEO services, you can claim input tax credits (ITCs) as part of your business GST/HST filing
5. Work with a Tax Advisor
Especially for larger agencies or complex arrangements, consult an accountant to ensure proper classification and documentation.
SEO Business Expense Summary
Search Engine Optimization (SEO) is arguably the most effective marketing solution. It helps increase online visibility, bring more clients and customers, and drive long-term revenue growth. It is an expense that every business owner can afford to write off, and it’s an investment in brand recognition and lead generation. SEO marketing is fully deductible under CRA and IRS rules as a business expense, so make sure you keep more money in your pocket.
