Home Office Deduction Calculator
Calculate your home office tax deduction using both the simplified and regular methods.
Enter office and home measurements plus expenses.
Home Office Deduction
Home office deduction allows self-employed individuals and qualifying employees to deduct expenses for the business use of their home.
Simplified Method:
Deduction = Office Area (sq ft) x $5 per sq ft
- Maximum: 300 sq ft ($1,500 max deduction)
- No depreciation calculation needed
- Cannot deduct actual expenses separately
Metric note: Convert m² to sq ft by multiplying by 10.764.
Deduction = Office Area (m²) x 10.764 x $5
Regular Method:
Business Use % = Office Area / Total Home Area x 100
Deduction = Total Home Expenses x Business Use %
Deductible home expenses (regular method):
- Mortgage interest or rent
- Property taxes
- Utilities (electric, gas, water, internet)
- Homeowner"s insurance
- Repairs and maintenance
- Depreciation (owned homes)
Qualifying requirements:
- Space must be used regularly and exclusively for business
- Must be your principal place of business (or used to meet clients)
- Self-employed individuals, independent contractors, gig workers
- W-2 employees generally cannot claim (post-2017 tax reform)
Which method is better?
- Simplified: easier, no record-keeping, but capped at $1,500
- Regular: more work, but often a larger deduction for larger offices or high expenses
- Calculate both and choose the higher amount