Home Office Tax Deduction Calculator
Compare the simplified and actual expense methods to find your maximum home office deduction.
IRS requirement: Your home office must be used regularly and exclusively for business. A dedicated room or clearly defined space qualifies.
Office & Home Details
Business use: 12.5%
Annual Home Expenses
Used to estimate actual dollar savings
Tax Information Notice
This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.
Frequently Asked Questions
What are the requirements for the home office deduction?
The space must be used regularly and exclusively for business. "Regularly" means on a routine basis, not occasionally. "Exclusively" means the space is used only for business — a kitchen table you work at doesn't qualify. For freelancers, home office is one of the most valuable deductions available.
Simplified vs regular method — which is better?
The simplified method ($5/sq ft, capped at 300 sq ft = $1,500 max) is easier but often smaller. The regular method (actual expenses × business use %) is more complex but can yield a larger deduction if you have high rent/mortgage and utilities. The calculator above shows both so you can choose the larger deduction.
Can renters claim the home office deduction?
Yes. Renters calculate the deduction based on their rent payments × the percentage of their home used for business. If your home office is 10% of your total home square footage, you can deduct 10% of your rent, utilities, and renter's insurance.