Free tool · US federal
Home office deduction calculator
Compare the simplified and regular methods and see which gives you the bigger home office deduction.
- Business use of home
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- Home costs for the year
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- Square feet counted (simplified)
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- Difference
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An estimate for planning, not tax advice. Leaves out depreciation (homeowners, regular method) and the business-income limit. Simplified rate: $5 per square foot, up to 300 square feet (IRS Rev. Proc. 2013-13). Check with an accountant before you file. Terms of use.
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Simplified or regular: which should you use?
The simplified method is quick: $5 for each square foot of office, up to 300 square feet. The regular method takes more record-keeping but is usually bigger if you rent, live somewhere expensive, or your office is a large share of your home.
- The space must be used regularly and only for your business.
- It must be your main place of business, or where you meet clients.
- Keep a floor plan or measurements, and your bills if you use the regular method.
- Sole proprietors claim it on Form 8829 (regular) or directly on Schedule C (simplified).
Common questions
Who can claim the home office deduction?
Self-employed people (sole proprietors, freelancers, independent contractors and many small business owners) who use part of their home regularly and only for business, as their main place of business or to meet clients. Employees who work from home for an employer cannot claim it on their federal return.
What is the simplified home office deduction?
You multiply the square footage of your office by $5, up to 300 square feet, for a maximum of $1,500 a year. There are no receipts to keep for home costs and no depreciation to recapture when you sell, but it is often smaller than the regular method.
How does the regular method work?
You work out the percentage of your home used for business (office square feet divided by total square feet) and deduct that share of your home costs: rent or mortgage interest, real estate taxes, insurance, utilities and repairs. Homeowners can also depreciate the business part of the home, which this calculator leaves out.
Does the space have to be a separate room?
No, but it must be a clearly defined area used regularly and only for business. A desk in the corner of a guest room can qualify if that area is used only for work; a kitchen table you also eat at does not.
Can the deduction be more than my business income?
No. The home office deduction cannot create a loss. Under the regular method, any amount above your business income can be carried forward to the next year; under the simplified method it cannot.
Can I switch between methods?
Yes. You can choose the simplified or regular method each year, so it is worth comparing both, which this calculator does.
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