Home office deduction calculator

The two methods

• Simplified method. $5 per square foot of office space, up to 300 square feet, so the most you can deduct is $1,500. There is no depreciation and no record of actual expenses to keep. Mortgage interest and real estate taxes are not split; you claim them in full on Schedule A if you itemize.
• Regular method. Business-use percentage (office square feet divided by total square feet) times your actual home expenses, plus direct office costs. It takes more records and Form 8829, and owners must account for depreciation, but it can be larger for a bigger office or a higher-cost home.

The rules that apply to both

• The space must be used regularly and exclusively for business, and it must be your principal place of business.
• With the simplified method, the deduction can't be more than your business profit from the home, and any extra can't be carried over to next year..
• The deduction is for self-employed people who file Schedule C. W-2 employees generally can't claim it.

Keep a floor plan or measurements, photos of the space and the bills behind every expense. Once you have your deduction, see how it changes your tax in the 1099 tax calculator.

Wondering about your phone, internet or utilities? Check other expenses →

Also useful

• CalculatorMileage deduction calculatorBusiness miles times the 2026 IRS standard rates, including the July rate change.
• Calculator1099 tax calculatorEstimate self-employment tax, federal income tax and NJ/NY tax on freelance income, and how much of each payment to set aside.
• CalculatorQuarterly estimated tax calculatorYour four 2026 estimated payments and their due dates, federal and NJ/NY, with the amount that avoids an underpayment penalty.