Home Office Deduction Calculator (2026)

There are two methods. The simplified method multiplies your office square footage (up to 300 sq ft) by $5, for a maximum of $1,500. The regular method multiplies your business-use percentage (office square footage divided by total home square footage) by your total home costs, rent or mortgage interest, utilities, insurance, and repairs. You use whichever gives the larger deduction.

The simplified method deducts $5 per square foot of office space, up to 300 square feet, so the maximum deduction is $1,500. It needs no receipts, just the size of the space, which makes it quick, but for larger homes or higher rent the regular method is often bigger.

It depends on your numbers. The simplified method is easier and caps at $1,500. The regular method can be much larger if you have a bigger office, high rent or mortgage interest, or high utilities, because you deduct that percentage of your actual home costs. Enter both into the calculator and it shows which is bigger.

Self-employed people who use part of their home regularly and exclusively for business, where that space is their principal place of business or where they regularly meet clients. A spare room used only as your office qualifies; a kitchen table you also eat at does not. W-2 employees generally cannot claim it on their federal return.

Your business-use percentage of rent or mortgage interest, utilities (electricity, gas, water), homeowners or renters insurance, and repairs and maintenance. Homeowners may also depreciate the business portion of the home. Costs that benefit only the office (like painting that room) can be fully deductible.

Yes. Renters use the same rules: the regular method deducts your business-use percentage of your rent, utilities, and renters insurance, or you can use the simplified $5 per square foot method. You do not have to own your home to claim the deduction.

For most qualifying self-employed people, yes. Because it reduces your net profit on Schedule C, it lowers both your income tax and your self-employment tax, so the real savings are often 30 to 40 cents per dollar of deduction. The calculator shows an estimate based on your tax bracket.

No. The home office deduction is a legitimate, common deduction and claiming it correctly does not trigger an audit. What matters is meeting the regular-and-exclusive-use test and keeping records of your square footage and home costs. Do not claim a space that is also used personally.

Generally not on a federal return under current rules, even if they work from home. The home office deduction is for the self-employed and reported on Schedule C. If you have both a job and self-employment, the deduction applies only to the self-employed work.

Yes, completely free with no signup. Enter your office and home size and your annual home costs to compare both methods and estimate your deduction and tax savings for 2026.

Only if you use the regular method. Form 8829 works out your allowable home office expenses and carries the result to Schedule C. If you use the simplified method instead, you skip Form 8829 and enter the deduction directly on Schedule C using the simplified method worksheet in the instructions.