Home office deduction calculator
Work from a room at home? Compare the simplified and regular methods for renters and owners, and see how much federal tax the deduction saves.
Your best home office deduction
$0
with the regular method. Your office is 0 % of your home.
Owners: with the simplified method you claim all your mortgage interest and property tax on Schedule A if you itemize. With the regular method, the office share goes on Form 8829 and depreciation may be taxed when you sell.
You can pick either method each year. Federal tax only.
Simplified vs regular method
| Simplified | Regular | |
|---|---|---|
| How it is worked out | $5 x office sq ft (max 300) | Office share of rent or mortgage interest, utilities, insurance, repairs, property tax, plus depreciation for owners |
| Most you can deduct | $1,500 | No fixed cap |
| Above your business income | Lost | Carries over to next year |
| Records | Office size | Every home bill, Form 8829 |
Two examples
Renter: a 200 sq ft office in a 1,500 sq ft apartment is 13.3 % of the home. With $18,000 of rent, $2,400 of utilities and $300 of renter's insurance, the regular method gives $2,760, against $1,000 simplified. On $50,000 of profit that saves about $636 in federal tax, against $231 with the simplified method.
Owner: a 200 sq ft office in a 2,000 sq ft house is 10 %. With $12,000 of mortgage interest, $4,000 of property tax, $3,000 of utilities, $1,500 of insurance and a $300,000 house without land, the regular method gives about $2,819, including $769 of depreciation.
See your full tax with the self-employment tax calculator after subtracting the deduction from profit, or plan payments with the quarterly estimated tax calculator.
Questions
Who can take the home office deduction?
Self-employed people (freelancers, 1099 contractors, sole proprietors) who use part of their home exclusively and regularly for business, as their main place of business or to meet clients. Most W-2 employees cannot deduct a home office on their federal return.
What is the simplified home office deduction for 2026?
$5 per square foot of the office, up to 300 square feet, so at most $1,500. There is no depreciation and no record of actual home costs needed, but any amount above your business income cannot be carried over.
Which method gives a bigger deduction?
The regular method usually wins when rent or mortgage interest is high, or the office is a large share of a small home. The simplified method can win for a small office in a cheap home, and it is much less paperwork. The calculator compares both.
Can I switch between methods?
Yes, you can choose either method each year. Once you have chosen a method for a year, you cannot change it later for that same year.
What does exclusive use mean?
The space is used only for your business. A spare room that is only an office qualifies. A kitchen table you also eat at, or a guest room where people sleep, does not.
Does the home office deduction lower self-employment tax?
Yes. It is a business expense on Schedule C, so it lowers your profit, which lowers both self-employment tax and income tax.
Sources
Last updated November 3, 2026. Figures for tax year 2026 from IRS and SSA sources.