Free tool
Home Office Deduction Calculator (2026)
Self-employed? Estimate your the Internal Revenue Service (IRS) home office deduction with the simplified and regular methods side by side. W-2 employee? See what you can do instead.
This free tool estimates the IRS home office deduction two ways, the simplified method and the regular method, from your office size, home size and yearly home costs. Self-employed people see both numbers side by side; W-2 employees see why the answer is $0 and what to ask their employer for instead.
What it does
Estimates the IRS home office deduction two ways, simplified and regular, from your office size and home costs.
Who it helps
self-employed people and freelancers with a space used only for work. W-2 employees see why they get $0 and what to ask for instead.
How to use it
- Choose Self-employed or W-2 employee.
- Enter the square feet used only for work.
- Add your home size and yearly home costs.
- Compare the two estimates.
How do you get paid?
Office size (used only for work)
Tip: a 10 ft by 12 ft room is 120 sq ft.
Whole home size
Yearly home costs (rent or mortgage interest, utilities, insurance)
Example value, enter your own
Estimated federal deduction
Compare both methods. Your deduction is generally limited by your business income.
Simplified method: $5 per sq ft of regular and exclusive business use, up to 300 sq ft ($1,500). Regular method: business-use share of actual home costs (Form 8829; depreciation and limits apply). W-2 employee home office deductions are suspended permanently. General information, not tax advice.
Read the stipends and taxes guideWhat your result means
- Simplified: $5 per square foot up to 300 sq ft, so $1,500 is the most it can give.
- Regular: your home costs times the share of the home used for work. Usually larger for big or expensive homes, but it needs Form 8829 and records.
- $0 as a W-2 employee is correct: that deduction is suspended. Ask HR about a remote work stipend instead. Read the guide
- This is an estimate, not tax advice. Check it with a tax professional.
How it works
The simplified method multiplies your office square footage (up to 300 sq ft) by $5, as set by the IRS. The regular method estimate multiplies your yearly home costs by the share of your home used for business (office square feet divided by home square feet). The real regular method uses Form 8829 and includes depreciation and limits, so this is an estimate. W-2 employees get $0 because the federal deduction for unreimbursed employee expenses is suspended permanently.
Sources
- IRS, Publication 587 (2025), Business Use of Your Home
- IRS, Form 8829, Expenses for Business Use of Your Home (regular method)
- IRS, Simplified option for home office deduction: $5 per square foot, up to 300 square feet
- One Big Beautiful Bill Act, Section 70110 (amends IRC Section 67(g))
General information only, not tax or legal advice. Rules change. Check with a tax professional for your situation. Last updated October 21, 2026.
FAQ
Can W-2 employees take the home office deduction?
No. The federal deduction for unreimbursed employee expenses is suspended permanently. Ask your employer about a remote work stipend instead.
What counts as exclusive use?
The space is used only for your business, for example a spare room or a clearly separate area, not a dining table.
Which method is better?
The simplified method is easier. The regular method can be larger for big offices or high housing costs, but needs records.