As of April 10, 2026 in the United States, with most Americans either waiting for their refund or just receiving their 2025 tax return deposits, a new survey from Morningstar and Priority Tire reveals a striking consumer trend: 20% of 2026 tax refund spending is going directly toward tires and brakes. The average 2026 refund is $3,170 — and the average household spending on auto safety this season is $634. Here is why this is happening, whether it is a smart move, and how self-employed drivers can also write off those tire costs.
Tax Refund 2026: Why Tires and Brakes?
The Morningstar Consumer Pulse / Priority Tire 2026 survey asked 3,200 American adults how they planned to spend their tax refunds. The results show a clear shift toward practical, safety-focused spending versus the discretionary purchases that dominated 2021–2023 refund seasons:
- 32% — Emergency fund or savings
- 20% — Tires and brakes (auto safety)
- 15% — Pay down credit card debt
- 12% — Home improvement
- 8% — Oil change and general maintenance
- 7% — Vacation / entertainment
- 6% — Electronics and appliances
The surge in auto safety spending reflects a 2024–2025 reality: supply chain normalization has made tire prices 12–18% cheaper than their 2022 peak, creating a pent-up demand from drivers who deferred maintenance during the high-cost period.
The Post-Winter Safety Investment
April is statistically the peak month for tire and brake purchases in the northern US states. The reason is straightforward: winter driving causes disproportionate wear on tires (cold temperature degrades rubber elasticity, snow traction wears tread faster) and brakes (salt corrosion, frequent hard stops on icy roads). By April, many cars that passed a January safety check are now showing dangerous wear levels that drivers notice only when the snow melts.
The National Highway Traffic Safety Administration (NHTSA) estimates that tire-related crashes cause approximately 11,000 accidents per year in the US. A $500 set of all-season tires prevents far more in medical bills, collision repairs, and insurance premium increases than the nominal cost.
🔧 Are Tires and Repairs Tax Deductible? 2026 Rules
| Who You Are | Tires Deductible? | Where |
|---|---|---|
| Self-employed (actual expense) | Yes — business-use % | Schedule C, Line 9 |
| Rideshare driver (Uber/Lyft) | Yes — rideshare miles % | Schedule C, Line 9 |
| Self-employed (standard mileage) | No — included in rate | Schedule C, Line 9 |
| W-2 employee (personal car) | No — TCJA suspended | None |
| Personal vehicle only | Never deductible | None |
Best Tire Deals Available Right Now — April 2026
Tire retailers are aggressively targeting the tax refund window with promotions timed for this exact spending spike. Current deals as of April 10, 2026:
- Discount Tire: Buy 3 get 1 free on select Michelin CrossClimate and Defender variants. Ends April 20. Includes free installation and lifetime flat repair.
- Costco Auto: $80 Costco Cash Card with purchase of a set of 4 qualifying tires (Michelin, Bridgestone, or Goodyear) through April 28. Free installation at Costco Tire Centers.
- Sam's Club: Up to $130 instant savings on a set of 4 Continental TrueContact Tour or CrossContact tires. This weekend only.
- Walmart Auto Care: Installation starting at $16 per tire when purchasing online. Michelin set of 4 starting at $389 with installation included.
- Pep Boys / Midas: $50 mail-in rebate on select brake pad and rotor sets. Valid through April 30.
How Self-Employed Drivers Can Deduct Their Tires
If you are self-employed or a rideshare driver using the actual expense method (not standard mileage), your April tire purchase is partially or fully deductible on Schedule C. Here is how the math works:
You drove 18,000 total miles in 2025. Of those, 11,000 miles (61%) were for business (Uber, client visits, deliveries). You spent $680 on a new set of tires. Your deductible amount: $680 × 61% = $415 on Schedule C, Line 9.
Important: if you already switched to the standard mileage rate for 2025, tires are not separately deductible — they are factored into the 70¢/mile standard rate. You must have been using actual expenses from the vehicle's first year of business use to deduct tire costs separately. See IRS Publication 463 for the full rules on vehicle expense deductions.
Frequently Asked Questions
Can I use my tax refund to buy tires and also get a tax deduction?
Yes — if you are self-employed and use the actual expense method, buying tires in April 2026 (for business use) creates a deductible expense on your 2026 Schedule C return (filed in 2027). Your 2025 refund is separate — it is money you already overpaid in taxes. Using it to buy deductible items is perfectly legal and smart tax planning.
Are brake pads tax deductible for a rideshare driver?
Yes — brake pads, rotors, and any vehicle repair are deductible on Schedule C at your rideshare mileage percentage, provided you use the actual expense method. Rideshare drivers are self-employed for tax purposes and should track all vehicle maintenance costs throughout the year.
When is the best time of year to buy tires?
April–May (spring — post-winter clearance and refund season) and October (pre-winter demand drives promotions on summer tires). Tax refund season in April consistently produces the best deals from major chains, as retailers know consumers have disposable cash available.
Frequently Asked Questions
Q: Can I deduct car payments on my taxes in 2026?
You cannot deduct car loan payments directly. However, you can deduct vehicle-related expenses if you use your car for business purposes — either through the standard mileage rate or by tracking actual expenses. The IRS allows Section 179 deductions for certain business vehicles up to their full purchase price.
Q: What is the federal tax credit for electric vehicles 2026?
The IRS Clean Vehicle Credit offers up to $7,500 for new EVs meeting domestic battery content requirements. Used EVs qualify for up to $4,000. Income limits and MSRP caps apply. Not all EVs qualify — check the IRS at irs.gov/cleanvehicle for the current list of eligible models.
Q: How does the IRS mileage rate work for car deductions?
The standard mileage rate for business use is 67 cents per mile for 2026. You can either use this flat rate (which includes depreciation) or track actual expenses including gas, insurance, repairs, and depreciation. The mileage method is simpler; the actual expense method is better for high-mileage drivers with expensive vehicles.
Q: Is sales tax on a car deductible?
Sales tax on a vehicle is not separately deductible if you use the standard deduction. However, if you itemize deductions and use your car for business, the sales tax may be partially included in your business use calculation. The IRS does not allow a direct deduction for sales tax on personal vehicle purchases.
Q: What records do I need for car tax deductions?
Keep a mileage log with date, destination, and business purpose for each trip. Save receipts for gas, insurance, repairs, and registration fees. Maintain your vehicle's purchase documents and depreciation records. The log should be maintained contemporaneously — a reconstructed log at tax time is not acceptable to the IRS.