Is a Home Office Tax Deductible? (2026)

Sometimes

Yes, if you use part of your home regularly and exclusively for your business. Self-employed people can claim the home office deduction two ways: the simplified method ($5 per square foot, up to 300 sq ft, so up to $1,500) or the regular method (the business-use percentage of rent or mortgage interest, utilities, insurance, and repairs). W-2 employees generally cannot claim it.

Where it goes: Schedule C, Line 30 (and Form 8829 for the regular method)

Illustration for whether a home office is tax deductible

The key test is regular and exclusive use: a specific area of your home used only for business. A spare room used as your office qualifies; the kitchen table you also eat at does not. The space must also be your principal place of business or where you regularly meet clients.

The simplified method deducts a flat $5 per square foot up to 300 square feet, so a maximum of $1,500, with no receipts needed. The regular method deducts the business-use percentage (office square footage divided by total home square footage) of your actual home costs, which can be larger but needs records.

This deduction is for the self-employed. Employees who work from home generally cannot deduct a home office on their federal return under current rules.

When it qualifies

A space used regularly and exclusively for your business
The space is your principal place of business or where you regularly meet clients
You are self-employed (report on Schedule C)

When it does not

A space used for both work and personal life (fails the exclusive-use test)
W-2 employees working from home (generally cannot claim it federally)

How much can you deduct?

Simplified: $5 per square foot up to 300 sq ft (max $1,500). Regular: the business-use percentage of rent or mortgage interest, utilities, insurance, and repairs.

A worked example

Example: your home office is 150 square feet. Under the simplified method you deduct 150 x $5 = $750. Under the regular method, if the office is 10% of your home's square footage, you deduct 10% of your rent, utilities, and insurance, which may be more or less than $750.

A deduction only counts if you can prove it. NeoReceipt captures the receipt and files it onto the right Schedule C line, so every write-off is documented at tax time.

Try NeoReceipt free 1099 tax calculator

Frequently asked questions

Who can claim the home office deduction?+

Self-employed people who use part of their home regularly and exclusively for business, and where it is their principal place of business or where they regularly meet clients. W-2 employees generally cannot claim it federally.

What is the simplified home office method?+

A flat $5 per square foot of office space, up to 300 square feet, for a maximum deduction of $1,500. It needs no receipts, just the square footage.

Does my home office have to be a separate room?+

Not a separate room, but a clearly defined space used only for business. A dedicated corner can qualify; a shared area used for personal life too does not meet the exclusive-use test.

Can I deduct rent for my home office?+

With the regular method, you deduct the business-use percentage of your rent (or mortgage interest), utilities, insurance, and repairs, based on the office's share of your home's square footage.