Can I Deduct Rent? (2026)

Sometimes

It depends on what you rent. Rent for a dedicated business space, an office, studio, storefront, or coworking membership, is fully deductible. Rent you pay for business equipment is deductible too. Your personal home rent is not directly deductible, but if you qualify for the home office deduction you can deduct the business-use share of it. Renting a purely personal apartment gives no deduction on its own.

Where it goes: Schedule C, Line 20b (rent of other business property), Line 20a (equipment rental), or Line 30 (home office)

Illustration for whether rent is tax deductible

If you rent space to run your business, an office, a studio, a workshop, a storefront, or a coworking desk or membership, the rent is a fully deductible business expense on Line 20b. A day pass or monthly coworking fee counts the same way.

Renting equipment for your business, tools, a camera, a vehicle, or machinery, is also deductible, on Line 20a. If you lease a car for business, the business-use portion of the lease is deductible under the vehicle rules.

Your personal home rent is not a business expense by itself. The way to deduct part of it is the home office deduction: if a space in your home is used regularly and exclusively for business, the regular method lets you deduct the business-use percentage of your rent, utilities, and insurance. The simplified method instead gives a flat $5 per square foot up to 300 square feet.

Keep your lease, invoices, or coworking receipts. If you use the home office route, keep the rent records and the square-footage calculation that supports your business-use percentage.

When it qualifies

Rent for an office, studio, workshop, storefront, or coworking space
Coworking day passes and memberships
Rent or lease payments for business equipment and tools
The business-use share of home rent, via the home office deduction

When it does not

Your personal home or apartment rent, on its own
The personal-use share of a home you also work in

How much can you deduct?

The full rent for dedicated business space or equipment. For a home office, the business-use percentage of your rent (regular method) or $5 per square foot up to 300 sq ft (simplified).

A worked example

Example: you rent a $300-a-month coworking desk for your business, that $3,600 a year is fully deductible. Your personal apartment rent is not, unless a home office there qualifies, in which case you deduct only the business-use share.

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

Can I deduct rent if I am self-employed?+

Yes for business space: an office, studio, storefront, or coworking membership is fully deductible. Personal home rent is not directly deductible, but the home office deduction lets you deduct the business-use share.

Is a coworking membership tax deductible?+

Yes. Coworking day passes and memberships used for your business are fully deductible as rent of business property on Schedule C.

Can I deduct part of my apartment rent for a home office?+

Yes, if a space is used regularly and exclusively for business. The regular method deducts the business-use percentage of your rent; the simplified method gives $5 per square foot up to 300 sq ft.

Is equipment rental deductible?+

Yes. Renting or leasing equipment, tools, or machinery for your business is deductible. A leased business vehicle is deductible for the business-use portion under the vehicle rules.

Can I deduct rent for a studio or workshop?+

Yes. Rent for a dedicated studio, workshop, office, or storefront used for your business is fully deductible on Schedule C Line 20b.

Is my whole home rent deductible if I work from home?+

No. Only the business-use share qualifies through the home office deduction, based on the portion of your home used regularly and exclusively for business.