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Home office deduction calculator

There are two ways to claim a home office, and they can produce very different numbers. This runs both so you can see which one is worth the paperwork.

Business-use percentage
Simplified method deduction
Actual expense deduction
Estimated tax saved (better method)
Larger deduction

Estimate only. Figures update as you type. Not tax advice — see the note at the bottom of this page.

Space used regularly and exclusively for work.

The two methods

The simplified method multiplies your office square footage by a flat per-square-foot rate, capped at 300 square feet. No receipts, no allocation math, one line on the form. The actual expense method takes your real home costs and multiplies them by the share of your home the office occupies.

Actual expenses usually win when rent is high relative to home size, which is why the method matters most to people in expensive cities working from small apartments. The simplified method usually wins when the office is small relative to a large, cheap home.

Regularly and exclusively

This is the requirement that disqualifies most people who think they qualify. The space has to be used regularly for business and exclusively for business. A desk in a spare room used only for work counts. A laptop on the kitchen table does not, because the kitchen table has an obvious non-business life.

What counts as a home cost

For the actual method, the usual inclusions are rent or mortgage interest, utilities, homeowners or renters insurance, and repairs benefiting the whole home. Homeowners have additional considerations around depreciation that can affect things later when you sell, which is a genuinely good reason to raise this with a tax professional rather than guessing.

Common questions

Can I take this if I rent?

Yes. Renters use rent payments in place of mortgage interest, and the regular-and-exclusive-use requirement is identical.

Can employees claim a home office?

Generally no under current federal rules. The deduction is aimed at self-employed people and business owners. Some states differ, so it's worth checking your own state's treatment.

Do I have to pick the same method every year?

No. You can generally choose per year, which is why running both is worth the two minutes. Switching does have implications for homeowners tracking depreciation.

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