Home Office Deduction Calculator
Run the simplified $5-per-square-foot method and the actual-expense method side by side, and claim whichever deduction is bigger.
Electricity, gas, water, internet.
Who can claim a home office
To deduct a home office you must use a defined space regularly and exclusively for your business. A spare room used only as your studio or office qualifies; the kitchen table you also eat dinner at does not. The deduction is available to self-employed people and independent contractors — not to W-2 employees working from home.
Simplified method
The simplified method deducts a flat $5 per square foot of office space, capped at 300 square feet — a maximum deduction of $1,500. It requires no expense records beyond the square footage, which makes it the low-effort choice for most freelancers.
Actual-expense method
The actual method deducts the business-use percentage of your real home costs — rent or mortgage interest, utilities, insurance, and maintenance. The percentage is your office area divided by your total home area. It can deduct far more than $1,500 for larger offices or higher-cost homes, but you have to track every expense.
Frequently asked
What is the home office deduction worth?+
It depends on the method. The simplified method tops out at $1,500 (300 sq ft × $5). The actual method has no cap — it deducts your office's share of real home costs, which for many freelancers exceeds $1,500.
Can I switch methods between years?+
Yes. You choose a method each tax year and can switch. This calculator shows both so you can pick the larger deduction annually.
Does claiming a home office trigger an audit?+
A correctly documented home office is a legitimate, common deduction and does not by itself invite an audit. Keep proof of the space, its exclusive business use, and — for the actual method — your expense records.
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