Tax Categories for Business Expenses refer to the various types of expenses and costs associated with running a business. These can range from labor and materials costs, rent and utilities, advertising, travel costs, and more. Understanding the different tax categories can help businesses maximize their deductions and ensure they remain compliant with the law. To make things easier, businesses may break down their expenses into five primary categories: non-deductible expenses, deductible ordinary and necessary expenses, capital expenses, personal expenses, and start-up costs. By assigning these costs to the right categories, businesses can claim deductions that can help them save money.