Can you write off website design costs?

Usually, yes — but not always all at once. Website design costs can often be written off as a business expense, but the correct tax treatment depends on what the website does, who built it, and when the cost was incurred.

General rule of thumb:

1. Basic marketing or informational website
   If the site is mainly for advertising, branding, or sharing basic business information, some or all of the cost may be currently deductible as an ordinary and necessary business expense.

2. Functional/e-commerce or custom software-like site
   If the website includes custom functionality, shopping carts, member portals, or other software-like features, the cost may need to be capitalized and recovered over time rather than deducted all in one year. In some cases, certain software-related costs may qualify for Section 179 or other depreciation/amortization rules, but that depends on the exact facts.

3. Costs before the business starts
   If you paid to build the site before your business began operating, those costs may be treated as startup costs. Startup costs can sometimes be partially deducted in the first year, with the remainder amortized over time, but there are limits and phaseouts.

4. Employee or in-house development
   If employees or contractors are developing the site in a way that falls under capitalization or research-and-development rules, the tax treatment can change significantly. Current federal rules for software/R&D are especially fact-specific and worth confirming before filing.

Best next step: keep records of what was built, when it went live, who did the work, and whether it is mainly marketing or functional software. Then confirm with a CPA or tax professional how your jurisdiction treats those costs.