PHIT Act Creates $1,000 Tax Deduction for Gym Fees and Fitness Gear, Starting Next Tax Year

The new Personal Health Investment Today Act of 2025—the PHIT Act—aims to improve public health by giving your wallet a break when you choose to get active. Essentially, this bill changes the tax code to allow you to treat certain costs related to physical activity as deductible medical expenses under Section 213(d) of the Internal Revenue Code. The idea is simple: if you spend money to get fit, the government wants to help you out financially, potentially encouraging more people to ditch the couch for the gym.

The Fine Print on Fitness Deductions

So, what actually counts? The bill defines “qualified sports and fitness expenses” broadly to include fees for joining a fitness facility (think gym memberships), costs for instruction or participation in physical activities (like a yoga class or a running club fee), and money spent on specific equipment. This is a game-changer because currently, these expenses are generally not deductible. However, if you’re planning to write off your entire home gym setup, hold up—there are some serious caps.

First, the overall limit is $1,000 per year for an individual, or $2,000 if you file jointly or as a head of household. That’s the most you can claim, regardless of how much you actually spend. Second, when it comes to equipment, the deduction for any single item is capped at just $250. This means if you buy a high-end stationary bike for $1,500, you can only count $250 of that purchase toward your total $1,000 deduction limit. For the average person buying a gym membership and some running shoes, this is a nice perk, but for those with expensive fitness hobbies, the benefit is limited.

Where the Rules Get Sticky

The bill gets very specific about what qualifies and what doesn't. If you buy clothing or shoes, they only count if they are absolutely necessary for the specific activity and you don't use them for anything else. Good luck proving to the IRS that your $150 running shoes are only ever used on the track and never for a quick trip to the grocery store. This 'apparel rule' is highly subjective and could create headaches down the line. Furthermore, the bill explicitly excludes facilities focused on activities like golf, hunting, sailing, or riding from the definition of a qualified fitness facility, so that country club membership is still on you.

Real-World Impact: Who Benefits?

If you're a busy professional spending $50 to $100 a month on a gym membership, this deduction is a clear win. For example, if your gym fees total $900 for the year, you can now count that toward your medical expense deduction. For a couple filing jointly who both have gym memberships and take fitness classes, they can deduct up to $2,000, making those healthy choices a little easier on the budget. This is a direct financial incentive that could genuinely help people prioritize preventative health. However, because the deduction is tied to the medical expense deduction, you still have to itemize your deductions and meet the adjusted gross income threshold for medical expenses, which means this benefit won't apply to every single taxpayer—only those who already itemize or whose combined medical and fitness expenses cross that high threshold.