Home Office Deduction Calculator
Compare simplified ($5/sqft) vs regular home office deduction. See which method saves more.
By Konstantin Iakovlev · Updated September 2026 · Source: IRS — Simplified option for home office deduction
Simplified Method
$750.00
Regular Method
$2,805.00
Better Method
Regular
Save $2,055.00 more
Simplified Method (Form 8829 not required)
| Office Size (max 300 sqft) | 150 sqft |
| Rate | $5.00 / sqft |
| Deduction | $750.00 |
Regular Method (Form 8829)
| Office % of Home | 7.5% |
| Mortgage / Rent | $24,000.00 |
| Utilities | $4,800.00 |
| Insurance | $2,400.00 |
| Repairs / Maintenance | $1,200.00 |
| Depreciation | $5,000.00 |
| Total Home Expenses | $37,400.00 |
| Deduction | $2,805.00 |
Use the Home Office Deduction Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Two methods exist for claiming a home office, and this tool compares them to show which yields the larger deduction for the 2026 tax year. Picking the method that maximizes your write-off translates directly into tax savings and more take-home income, so the comparison is worth running before you file.
Under the simplified method, you deduct $5 per square foot of office space up to 300 square feet, which caps the deduction at $1,500. The regular method works differently: it totals the actual expenses tied to the office, including a proportional share of rent, mortgage interest, utilities, insurance, and depreciation, based on the share of your home devoted to business.
Eligibility hinges on the space being used exclusively and regularly for business, and it must serve as your principal place of business, a place where you routinely meet clients, or a separate structure detached from the home. Where filers go wrong is in deducting personal costs or failing to track every eligible regular-method expense across the full year.
Example: Freelance Graphic Designer
- 1 A freelance graphic designer rents a 1,000 sq ft apartment and uses a 150 sq ft room only for work. Yearly costs: rent $24,000, utilities $4,800, renter's insurance $300; no repairs, and no depreciation because she does not own the home.
- 2 Simplified method: 150 sq ft × $5 = $750.
- 3 Regular method: the office is 150 ÷ 1,000 = 15% of the home. Home expenses total $24,000 + $4,800 + $300 = $29,100, and 15% of that is $4,365.
- 4 The calculator marks the regular method as better, by $3,615. Under either method the deduction cannot exceed the gross income from the business use of the home less other business expenses, a limit the calculator does not apply.
Source: IRS — Simplified option for home office deduction · Last updated: September 2026
Frequently Asked Questions
What is the simplified home office deduction?
When should I use the regular method instead?
Can W-2 employees claim the home office deduction?
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