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.
Calculate your home office tax deduction both ways
This free home office deduction calculator works out your write-off using both IRS methods — the simplified square-footage method and the actual-expense method — and shows you which one produces the larger deduction. If you're self-employed and work from home, the home office deduction is one of the most valuable and most under-claimed write-offs available to you.
Enter your office square footage, your home's total square footage, and your annual housing costs. The calculator instantly returns the deduction under each method and an estimate of the tax it saves. It's built for freelancers, independent contractors, and single-member LLC owners who run a business from a dedicated space at home.
Who can claim the home office deduction
To deduct a home office you must use a specific area of your home 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 exclusive-use test is strict.
The deduction is available to self-employed people, independent contractors, and small-business owners. W-2 employees working from home generally cannot claim it under current federal rules.
Simplified method vs. actual-expense 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 needs no expense records beyond the square footage, which makes it the low-effort choice for most freelancers.
The actual-expense 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 it requires you to track every expense and keep the records.
How to choose the right method each year
You pick a method each tax year and can switch between them year to year. The right choice is simply whichever gives the bigger deduction for your situation — a small office in an inexpensive home often favors the simplified method, while a large office or a high-rent home usually favors the actual method. This calculator runs both so the decision takes seconds. A correctly documented home office is a routine, legitimate deduction; keep proof of the space, its exclusive business use, and your expense records.
Frequently asked questions
How much 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.
What is the simplified home office deduction?+
The simplified method lets you deduct $5 per square foot of home office space, up to 300 square feet, for a maximum of $1,500 — with no need to track individual home expenses.
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.
Stop running the numbers by hand.
TaxClover keeps every figure on this page current automatically — and reminds you before each quarterly deadline. $19/mo, 14-day free trial.