How does the simplified home office deduction method work?

Multiply your home office square footage (max 300 sq ft) by $5 per square foot, up to a $1,500 per year cap. It is fast and needs no records beyond square footage. You cannot deduct actual expenses if you use this method.

How does the regular home office deduction method work?

Your business-use percentage (office sq ft divided by total home sq ft) determines how much of each expense you can deduct: rent or mortgage interest, utilities and internet, home insurance, repairs and maintenance, and property tax. Direct office-only expenses are 100% deductible.

Which home office method should I use?

Use the simplified method if your actual expenses are low or you do not want to track everything. The regular method requires record keeping but often yields a higher deduction, especially in high-cost areas.

Does the home office calculator include depreciation?

No. Depreciation on your home may apply and is not included in this estimate. The estimate is based on IRS Pub 587 rules.

Is the home office deduction calculator free?

Yes. It is a free tool with no signup and no email required. It gives an instant estimate comparing the simplified and regular home office deduction methods based on IRS Pub 587 rules.

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Free Tool

Home Office Deduction Calculator

Compare the simplified and regular home office deduction methods. Instant estimate based on IRS Pub 587 rules. No signup. No email.

📐 Simplified Method — $5/sq ft, up to $1,500

Multiply your home office square footage (max 300 sq ft) by $5. Fast, no records needed beyond square footage. Best if your actual expenses are low or you don't want to track everything.
Cap: $1,500 per year. You cannot deduct actual expenses if you use this method.

📊 Regular Method — Actual Expenses × Business %

Your business-use percentage (office sq ft ÷ total home sq ft) determines how much of each expense you can deduct:

Rent or mortgage interest
Utilities + internet
Home insurance
Repairs and maintenance
Property tax

Direct office-only expenses (painting, repairs in the office) are 100% deductible. The regular method requires record keeping but often yields a higher deduction — especially in high-cost areas. Note: Depreciation on your home may apply and is not included in this estimate.

Home Office Area (sq ft) Exclusive, regular-use business space in your home

Total Home Area (sq ft) Total finished living area of your home

Rent or Mortgage Interest ($/year) Rent payments OR mortgage interest only (not principal)

Property Tax ($/year) Annual real estate taxes on your home

Utilities + Internet ($/year) Electricity, gas, water, internet, trash

Home Insurance ($/year) Renter's or homeowner's insurance premiums

Shared Repairs + Maintenance ($/year) Repairs benefiting the whole home (HVAC, roof, plumbing)

Direct Office-Only Expenses ($/year) Painting, repairs, or improvements to the office only (100% deductible)

Enter your details and click compare

Simplified Method

$5/sq ft × 0 sq ft

Regular Method

0% business use

🧮 How We Got These Numbers

Home Office Area0 sq ft

Total Home Area0 sq ft

Business Use Percentage0%

Total Shared Expenses$0

Direct Office Expenses (100%)$0

Simplified Deduction$0

Regular Method Deduction$0

⚠️ Important: The regular method may require you to depreciate the business-use portion of your home (IRS Form 8829). Depreciation can reduce your deduction in the current year and must be recaptured when you sell. The simplified method avoids depreciation entirely. This calculator does not include depreciation — your actual regular-method deduction may be lower. Consult IRS Pub 587 or a tax professional.

📋 The Calculator Gives You the Number. The Workbook Tracks Everything.

9 printable worksheets cover every freelancer deduction: home office, mileage, equipment, meals, and more. Stop guessing which method to use — track it all year.

🧾 Get the Tax Workbook — $9

❓ Common questions

How does the simplified home office deduction method work?: Multiply your home office square footage (max 300 sq ft) by $5 per square foot, up to a $1,500 per year cap. It is fast and needs no records beyond square footage. You cannot deduct actual expenses if you use this method.
How does the regular home office deduction method work?: Your business-use percentage (office sq ft divided by total home sq ft) determines how much of each expense you can deduct: rent or mortgage interest, utilities and internet, home insurance, repairs and maintenance, and property tax. Direct office-only expenses are 100% deductible.
Which home office method should I use?: Use the simplified method if your actual expenses are low or you do not want to track everything. The regular method requires record keeping but often yields a higher deduction, especially in high-cost areas.
Does the home office calculator include depreciation?: No. Depreciation on your home may apply and is not included in this estimate. The estimate is based on IRS Pub 587 rules.
Is the home office deduction calculator free?: Yes. It is a free tool with no signup and no email required. It gives an instant estimate comparing the simplified and regular home office deduction methods based on IRS Pub 587 rules.