What is the home office deduction for 2026?

The IRS home office deduction allows self-employed people and business owners to deduct expenses for the portion of their home used exclusively and regularly for business. In 2026 you can use the simplified method ($5 per square foot, up to 300 sq ft, max $1,500) or the regular method based on actual home expenses.

What is the simplified method for home office deduction?

The IRS simplified method lets you deduct $5 per square foot of your home office, up to a maximum of 300 square feet — capping the deduction at $1,500 per year. It requires no recordkeeping of actual home expenses.

What is the regular method for home office deduction?

The regular method calculates your home office deduction as the percentage of your home used for business (office sq ft / total home sq ft) multiplied by your actual home expenses — rent or mortgage interest, utilities, insurance, repairs, and depreciation. This often yields a larger deduction but requires Form 8829.

Can employees take the home office deduction in 2026?

No. Since the 2018 Tax Cuts and Jobs Act, W-2 employees cannot claim the home office deduction on federal returns, even if they work from home full time. The deduction is only available to self-employed people, freelancers, and business owners.

What qualifies as a home office for the IRS?

To qualify, the space must be used regularly and exclusively for business — either as your principal place of business, a place where you meet clients, or a separate structure on your property. A desk in a shared living room generally does not qualify.

Which home office method saves more — simplified or regular?

The regular method almost always yields a larger deduction for people with higher home costs or larger offices. The simplified method caps at $1,500 per year. Use this calculator to compare both and see which saves more for your situation.

Do I need Form 8829 for the home office deduction?

Yes — if you use the regular method you must file IRS Form 8829 with your Schedule C. The simplified method does not require Form 8829; you just enter the deduction directly on Schedule C, Part II, Line 30.

Can I deduct internet separately from the home office deduction?

Yes. Your business-use percentage of home internet can be deducted on Schedule C as a direct business expense, separate from the home office deduction. If your internet is 80% business use, deduct 80% of the annual cost as a business expense.

Home Office Deduction Calculator 2026

Your Numbers

Home office square footage dedicated workspace only

sq ft

Total home square footage

sq ft

Annual Home Expenses (for regular method)

Rent or mortgage interest annual

Utilities electricity, gas, water — annual

Home insurance annual

Maintenance & repairs annual

Tax Rate

Your effective tax rate federal + state combined

Results

→ Enter your numbers to see results

Your Home Office Deduction

Business use percentage

Office sq ft / total home sq ft

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Simplified method deduction

$5 per sq ft, max 300 sq ft

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Regular method deduction

Actual expenses × business %

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Best deduction to claim
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Estimated tax savings

Best deduction × your tax rate

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