Home Office Deduction Calculator 2026
Compare the simplified method vs the actual expense method side by side. See which saves you more and calculate your exact tax savings based on your filing status and state.
Eligibility Check
The IRS requires all three conditions to claim the home office deduction.
Simplified Method
$5 per square foot, up to 300 sq ft maximum. No record-keeping required beyond measuring your office space.
Maximum 300 sq ft ($1,500 max deduction)
$1,000
Actual Expense Method
Deduct the business percentage of actual home expenses. Requires record-keeping but often yields a larger deduction.
Business use: 13.3%
Annual Home Expenses
Annual amount
Only for homeowners
Home cost ÷ 39 years × business %
$0
$0
Side-by-Side Comparison
The Actual Method saves you more
$0
| Simplified | Actual | |
|---|---|---|
| Office Size | 200 sq ft | 200 sq ft |
| Business Use % | N/A (flat rate) | 13.3% |
| Calculation | 200 × $5 | $35,800 × 13.3% |
| Deduction Amount | $1,000 | $4,773 |
| Record-Keeping | Minimal | Detailed receipts required |
| Depreciation | Not allowed | Allowed (recapture on sale) |
Estimated Tax Savings
Based on your filing status and state, here's how much each method reduces your actual tax bill.
Used to estimate your marginal tax rate
Simplified Tax Savings
$0
Actual Tax Savings
$0
How the Home Office Deduction Works in 2026
If you're self-employed and use part of your home regularly and exclusively for business, you can deduct a portion of your home expenses on Schedule C. The IRS offers two methods: the simplified method and the actual expense method. Choosing the right one can mean hundreds or even thousands of dollars in tax savings.
Simplified Method ($5 per Square Foot)
The simplified method is exactly what it sounds like — multiply your office square footage by $5, up to a maximum of 300 square feet ($1,500 maximum deduction). You don't need to track individual home expenses or keep detailed records. This method is best for people with smaller offices or those who want minimal bookkeeping. However, you cannot deduct depreciation, and you still claim the full amount of mortgage interest and property taxes on Schedule A (if itemizing).
Actual Expense Method
The actual expense method lets you deduct the business-use percentage of real home expenses: mortgage interest or rent, utilities, insurance, repairs, maintenance, property taxes, and depreciation. Your business-use percentage is typically calculated as office square footage divided by total home square footage. This method usually produces a larger deduction, especially if you have a larger office or high housing costs — but it requires keeping receipts and records.
Which Method Should You Choose?
Use the calculator above to compare both methods side by side. As a general rule, the actual method saves more when your home expenses are high relative to your office size. The simplified method is often better when your office is small (under 100 sq ft) or when your home expenses are modest. You can switch methods from year to year, but you cannot use both in the same tax year.
Eligibility Requirements
To claim the home office deduction, you must use the space regularly and exclusively for business. It must be your principal place of business, a place where you regularly meet clients, or a separate structure used for business. W-2 employees generally cannot claim this deduction since the Tax Cuts and Jobs Act of 2017 — it's available to self-employed workers, freelancers, and business owners who file Schedule C.
Home Office Deduction Calculator by State
Quick Comparison
- Simplified Method
-
$5/sq ft, max 300 sq ft
Max deduction: $1,500
No depreciation
Minimal record-keeping
- Actual Method
-
Business % of real expenses
No maximum deduction
Depreciation allowed
Detailed receipts required
Home Office Tips
- → You can switch methods year to year — pick the one that saves more
- → The space must be used "regularly and exclusively" for business
- → A spare bedroom used as an office qualifies; a kitchen table usually doesn't
- → Take photos of your office space as documentation