Business expenses, including business travel, are deducted before maaser
Costs of producing income — payroll, inventory, rent, advertising, business taxes and insurance, non-negligent business losses, and business travel including meals and lodging on the road — are deducted from revenue before calculating maaser.
Positions by community
Ashkenazi
Aruch Hashulchan YD 249:7: only net profit counts — 'all expenses he had for the business — even what he spent traveling on the road, and his eating and drinking [while traveling] — are all counted as business expenses, and he deducts everything.' Includes wages paid, inventory, leasing, advertising, business taxes and insurance, and non-negligent business losses (OU Halacha Yomis).
Sephardi
Same; business expenses reduce the maaser base.
Chabad
Same.
Sources
- https://www.sefaria.org/Arukh_HaShulchan,_Yoreh_De'ah.249.7 — Yoreh De'ah 249:7
- https://outorah.org/p/51498/ — Pre-Maaser Deductions
Track this for yourself
Tag transactions against rules like this one and see your running maaser balance.
MyMaaser presents sourced halachic positions and is not a substitute for your rav. Consult your rav (CYLOR).