Home Office Deduction Calculator
If you use part of your home regularly and exclusively for business, you can deduct it using the IRS simplified method ($5/sq ft, up to 300 sq ft) or the actual expense method (your business-use percentage of real home costs). Enter your numbers to see which one saves you more for 2026.
Business-use percentage
10.0%
Simplified method
$750
$5/sq ft, up to 300 sq ft
Actual expense method
$2,300
10.0% of $23,000 in home expenses
Tax impact of the actual expense method
Where your net profit goes (with the deduction applied)
Take-home pay
$57,735
Social Security
$8,325
Medicare
$1,947
Federal income tax
$4,693
Home office deduction by state
The deduction itself is a federal (and usually state) income calculation, but your savings depend on your combined tax rate. Jump to your state:
Frequently asked questions
What qualifies as a home office for tax purposes? +
Space you use regularly and exclusively for business. A desk in the corner of a room you also use for other things generally doesn't qualify — the IRS is strict about the 'exclusive use' requirement.
Simplified vs. actual expense method — which should I use? +
Whichever produces the bigger deduction for your numbers, which is exactly what this calculator compares. The simplified method is easier to document; the actual-expense method can be worth more if your real home costs are high relative to your office's share of the space.
Can W-2 employees take the home office deduction? +
No — only self-employed people can currently deduct home office expenses. W-2 employees lost this deduction under the 2017 tax law, and it has not been restored.
Does claiming a home office deduction trigger an audit? +
Not inherently. It's a normal, well-documented deduction as long as you keep records of your square footage and expenses — the reputation for triggering audits is mostly outdated.
What if I moved partway through the year? +
You can prorate the deduction based on how many months you used each home office, calculating the simplified or actual-expense amount separately for each period.
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