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Home office deduction calculator

Enter the size of your office and your home's yearly costs to see which IRS method gives the bigger deduction.

Office area (sq ft)

Used regularly and only for your business.

Whole home (sq ft)

Rent or mortgage interest, per year ($)

Homeowners: mortgage interest and property tax, not principal.

Utilities, per year ($)

Electricity, heating, water, internet share.

Renters or homeowners insurance, per year ($)

Other whole-home costs, per year ($)

Repairs, HOA fees, depreciation.

Costs for the office only ($)

Painting or repairs in that room. Counted in full.

Business profit before this deduction ($)

Optional. The deduction can't be more than this.

Regular method gives more

$3,116

Simplified: $5 x sq ft (max 300): $900
Regular: 12% of home costs + office costs: $3,116
Business share of the home: 12%

Estimate only, not tax advice. The regular method uses Form 8829, can carry unused amounts to next year and means depreciation recapture if you sell a home you own. W-2 employees can't take this deduction.

IN SHORT

The simplified home office deduction is $5 per square foot of office space, up to 300 square feet, so at most $1,500. The regular method deducts the office's share of rent or mortgage interest, utilities, insurance and repairs, plus costs for the office alone, on Form 8829. The space must be used regularly and only for your business. This is an estimate, not tax advice.

Prices and limits as of October 26, 2026.

Questions

Who can take the home office deduction?

Self-employed people who use part of their home regularly and exclusively for business, as their main place of business or to meet clients. W-2 employees can't take it on their federal return.

How does the simplified method work?

Multiply the office's square footage, up to 300, by $5. You don't track home expenses or depreciation, and mortgage interest and property tax stay fully deductible on Schedule A if you itemize.

When is the regular method better?

Usually when rent or home costs are high and the office is a big share of the home. It takes more records and, for a home you own, depreciation you claim is taxed when you sell.

Can the deduction be more than my profit?

No. Both methods are limited to the business income from the home office. Under the regular method, the unused part carries forward to next year; under the simplified method it doesn't.

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