Home Office Deduction Calculator — Free 2026 Calculator
If you work from home, you can deduct a portion of your housing costs. The simplified method gives you $5 per square foot (up to $1,500). The regular method can be larger. Enter your details to compare both.
Area used exclusively and regularly for business
Calculation Method
The Exclusive and Regular Use Requirement
The IRS has a strict requirement: your home office must be used exclusively for business. A dining table where you also eat meals does not qualify. A spare bedroom converted into a dedicated office does.
"Regular use" means consistent, ongoing use — not just occasional work. If you use a space every workday for your business, it meets the standard. Occasional use for business tasks in a shared living space does not.
There is one exception: if you use a portion of your home to store inventory or product samples, exclusive use is not required — but the storage area must be identifiable and regularly used.
Simplified vs. Regular Method
| Feature | Simplified | Regular |
|---|---|---|
| Calculation | $5 x sq ft (max 300) | Actual expenses x business % |
| Maximum deduction | $1,500 | No limit |
| Record-keeping | Minimal (just sq ft) | Detailed expense tracking |
| Depreciation | Not required | Must calculate |
| Best for | Small offices, simplicity | Large offices, high expenses |
What Qualifies as a Home Office
- A dedicated room used only for your business — the most clear-cut qualifier.
- A partitioned area within a larger room, as long as the partition creates a distinct space used exclusively for business.
- A detached structure (garage, shed, studio) used exclusively and regularly for business.
- A storage area for inventory if you sell products — exclusive use is not required for storage.
Frequently Asked Questions
Who qualifies for the home office deduction?
Self-employed individuals, freelancers, and independent contractors who use a specific area of their home exclusively and regularly for business. The space must be your principal place of business, or a place where you regularly meet clients. W-2 employees generally cannot claim the home office deduction after the 2017 Tax Cuts and Jobs Act.
What does "exclusive and regular use" mean?
The space must be used only for business — a desk in the corner of a bedroom that doubles as a guest room does not qualify. "Regular" means you use it consistently, not just occasionally. A dedicated home office, studio, or workshop typically meets both requirements.
What is the simplified home office deduction?
The simplified method lets you deduct $5 per square foot of your home office, up to 300 square feet (maximum $1,500). You do not need to track individual home expenses or calculate depreciation. It is easier to calculate but may result in a smaller deduction than the regular method.
What expenses can I deduct with the regular method?
With the regular method, you deduct the business-use percentage of: rent or mortgage interest, property taxes, utilities (electric, gas, water, internet), homeowner/renter insurance, repairs and maintenance, and depreciation. Direct expenses (like painting only the office) are 100% deductible; indirect expenses (like utilities) are prorated by square footage.
Can I deduct my home office if I rent?
Yes. Renters can deduct the business-use percentage of their rent, utilities, renter insurance, and any repairs or improvements made to the office area. The rules are the same — exclusive and regular use for business.
TaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.
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