Home Office Deduction Calculator
Compare the simplified and regular home-office methods side by side, and see which one deducts more for your space.
Your details
Rough figures are fine — you can refine later.
How we calculate this
We compute both IRS methods and recommend the larger. The simplified rate and cap come from our versioned tax-constants.json.
Simplified method. min(office sq ft, 300) × $5, capped at $1,500. No expense records required.
Regular method. (office sq ft ÷ home sq ft) × your annual home expenses (rent/mortgage interest, utilities, insurance). Business-use percentage is capped at 100%.
Recommended. The greater of the two.
Assumptions: the space is used regularly and exclusively for business; you’re self-employed (Schedule C). The regular method may involve depreciation and recapture for homeowners — confirm specifics with a professional.
Primary sources
- IRS Publication 587, Business Use of Your Home
- IRS Form 8829, Expenses for Business Use of Your Home
- IRS Simplified Option for Home Office Deduction ($5/sq ft, 300 sq ft cap)
Two ways to deduct your home office
If you're self-employed and work from home, the IRS gives you two ways to deduct the cost of that space — and they can produce very different numbers. This calculator runs both and tells you which deducts more.
The simplified method is the no-paperwork option: deduct $5 per square foot of your office, up to 300 square feet, for a maximum of $1,500. No receipts, no tracking of utility bills, no depreciation math. A 200-square-foot office gets you $1,000; anything over 300 square feet caps out at $1,500.
The regular method deducts your office's share of your *actual* home costs. Figure the percentage of your home the office occupies (office square feet ÷ total square feet), then apply that percentage to your annual home expenses — rent or mortgage interest, utilities, insurance, and so on. If your home costs are high or your office is large, this method usually wins, sometimes by a wide margin.
The rule that gates everything: regular and exclusive use
Before either method matters, the space has to qualify. The IRS requires the area be used regularly and exclusively for business. "Exclusively" is the strict part — a spare bedroom that doubles as a guest room or a kitchen table where you also eat dinner generally fails. A dedicated desk area or a room used only for work qualifies. It doesn't have to be a whole room, but it must be a clearly defined space used only for business.
How to choose
- Small office, low home costs, hate paperwork? The simplified method is likely close to optimal and far easier.
- Large office or high rent/mortgage and utilities? The regular method probably deducts more — worth the extra record-keeping.
- Not sure? Enter both your square footage and your annual home expenses here; the tool computes each and recommends the larger.
You can even choose a different method year to year, so it's worth rechecking when your space or costs change.
A note for homeowners
The regular method can involve depreciating the business-use portion of your home, which may create depreciation-recapture consequences when you sell. The simplified method sidesteps that entirely. If you own your home and the regular method looks better, confirm the depreciation and recapture details with a professional before committing.
Who can claim it
Since 2018, the home office deduction is available to the self-employed and independent contractors — not to W-2 employees working from home. This calculator assumes you're self-employed and filing on Schedule C.
What this assumes
A qualifying space used regularly and exclusively for business, and self-employment income. The regular method uses the annual home expenses you enter; it doesn't itemize or model depreciation.
Estimates only, not tax advice. Confirm eligibility and method with a qualified professional.
Common questions
What is the simplified home office deduction? + −
The IRS simplified method lets you deduct $5 per square foot of your home office, up to 300 square feet — a maximum of $1,500 — with no need to track actual expenses. It’s the easy option and often close to the regular method for smaller spaces.
Simplified vs. regular method — which is better? + −
The regular method deducts your office’s share of actual home costs (rent or mortgage interest, utilities, insurance), so it usually wins when your home expenses are high or your office is large. The simplified method wins on ease. This tool shows both and recommends the larger.
Do I need a separate room for a home office? + −
Not a separate room, but the space must be used regularly and exclusively for business. A spare bedroom that doubles as a guest room generally fails the exclusive-use test; a dedicated desk area used only for work can qualify.
Can employees claim the home office deduction? + −
Generally no — since 2018 the home office deduction is available to the self-employed and independent contractors, not to W-2 employees working from home. This calculator assumes you’re self-employed.
Keep going
Prepared for tax year 2026. Every rate and cap on this page cites a primary IRS or SSA source. Estimates only — not tax or financial advice. — for planning purposes only, not tax, legal, or financial advice.