Home Office Deduction Calculator
Calculate your home office deduction using both the simplified and regular methods. See which saves you more money. All calculations happen right here in your browser — your numbers never leave your device, and there is nothing to sign up for.
Home Office Deduction Calculator
Compare simplified vs. regular method to maximize your deduction
The IRS allows $5 per square foot, up to 300 sq ft ($1,500 max).
Simplified Method
$750
150 sq ft x $5/sq ft
Tax Savings
$188
Regular Method
$2,330
0.1% of $23,300 in expenses
Tax Savings
$583
The Regular method saves you $1,580 more
Business use: 0.1% of your home (150 of 1500 sq ft)
Your office space must be used regularly and exclusively for business to qualify. Consult a tax professional for personalized advice.
How to Use This Calculator
Using this calculator is straightforward. Start by entering your financial information in the fields above. You can adjust any value at any time and the results will update instantly — there is no submit button to press.
- Fill in each field with your best estimates. Exact numbers are great, but reasonable approximations work well too.
- Review the results section that appears below the inputs. Each number is labeled so you know exactly what it represents.
- Try different scenarios by adjusting your inputs. This is a great way to understand how changes in income or expenses affect your bottom line.
- Use the results to plan ahead — whether that means setting aside money for quarterly taxes, adjusting your rates, or identifying deductions you may have missed.
Understanding Your Results
The results above give you a clear snapshot of your financial situation based on the numbers you entered. Here is how to make the most of them:
Look at the big picture first. Start with the summary totals before diving into line-by-line details. This gives you a sense of where you stand overall.
Compare scenarios. Try changing your inputs to see how different situations play out. What happens if your income increases? What if you claim an additional deduction? Playing with the numbers helps you make informed decisions.
Use this as a starting point. These calculations are based on general federal rules and standard rates. Your actual tax situation may differ based on your state, filing status, and specific circumstances. When in doubt, bring these numbers to a tax professional — they make a great conversation starter.
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Frequently Asked Questions
What is the simplified home office deduction?
The simplified method lets you deduct $5 per square foot of your home office, up to a maximum of 300 square feet ($1,500). It's easier to calculate and requires less recordkeeping than the regular method.
What qualifies as a home office?
Your home office must be used regularly and exclusively for business. It should be a dedicated space — a spare room, converted garage, or defined area. Occasionally working from your kitchen table doesn't qualify.
Which method saves more — simplified or regular?
The regular method often saves more if your home expenses are high (rent, utilities, insurance). The simplified method is better for small offices or when your housing costs are low. Our calculator compares both so you can choose.
Can I deduct home office if I rent?
Yes! Renters can deduct the business percentage of their rent, utilities, renter's insurance, and other housing costs using the regular method, or use the simplified method.