How much is the home office deduction for 2026?
Using the IRS Simplified Method, the home office deduction is $5 per square foot of dedicated office space, up to 300 square feet maximum, a maximum of $1,500 per year. The space must be used regularly and exclusively for business. You do not need to track actual home expenses with this method, but you cannot also claim depreciation for home business use.
Home Office Deduction Calculator
Calculate your home office deduction using the IRS Simplified Method. Enter your dedicated office space to see your deduction instantly.
Office Space
Tax Year 2026 Simplified Method Rate
How the Simplified Method Works
The IRS Simplified Method allows self-employed individuals to deduct a flat dollar amount per square foot of home office space, without tracking individual home expenses.
The office space must be used exclusively and regularly as your principal place of business. The simplified method has no depreciation recapture consequences.
The IRS also offers a Regular Method based on actual home expenses. That method requires detailed expense tracking and may yield a larger deduction, but involves more complexity and is not covered by this calculator.
Frequently Asked Questions
How this calculator works
This calculator estimates your federal home office deduction using the IRS Simplified Method. The Simplified Method gives a flat $5 per square foot of dedicated office space, capped at 300 square feet (a maximum deduction of $1,500). The space must be used regularly and exclusively for business. You enter the square footage of the area you use as a home office, and the calculator multiplies it by $5 (or applies the 300 sq ft cap, whichever is lower). The deduction reduces your business income on Schedule C, which in turn reduces both income tax and self-employment tax.
Deduction = MIN(Office square footage, 300) × $5Assumptions
- You use the IRS Simplified Method, not the Regular Method. The Simplified Method does not require tracking actual home expenses.
- The space is used regularly and exclusively for business. Personal use of the same space disqualifies the deduction.
- You are self-employed reporting on Schedule C. W-2 employees have not been able to deduct home office expenses since the 2017 tax law (TCJA) eliminated unreimbursed employee expenses.
- The home is your principal place of business, or where you regularly meet clients/patients/customers.
Limitations
- This calculator does not handle the Regular Method, which prorates actual home expenses (utilities, insurance, depreciation) by office square footage. The Regular Method can produce a larger deduction in higher-cost homes but requires more tracking.
- It does not depreciate the home. Under the Simplified Method, you do not get to depreciate, and you avoid the depreciation recapture issues that come with the Regular Method.
- It does not include separate structures (detached garage office, studio shed). These have specific requirements not modeled here.
- Daycare facilities have a different calculation method that allows shared-use space at a prorated rate.
For our overall editorial process and how we maintain calculator accuracy across the site, see our full methodology page.
Sources used for this calculator
Each data point or rate below is taken from the source listed (official pages where available; editable assumptions are labeled) and was verified on the date shown.
| Data point or rate | Value used | Source | Last checked | Notes |
|---|---|---|---|---|
| Simplified Method rate | $5 per square foot | IRS Simplified Option for Home Office Deduction | 2026-04-24 | - |
| Maximum square footage | 300 sq ft | IRS Simplified Option for Home Office Deduction | 2026-04-24 | Cap on the deduction calculation |
| Maximum annual deduction | $1,500 | IRS Simplified Option for Home Office Deduction | 2026-04-24 | Equals 300 sq ft × $5/sq ft |
| Eligibility requirement | Regular and exclusive use | IRS Publication 587 (Business Use of Your Home) | 2026-04-24 | Both criteria must be met |
| Employee eligibility | Not deductible (2018-2025+) | Tax Cuts and Jobs Act (2017) | 2026-04-24 | W-2 employees lost this deduction starting tax year 2018 |
Compare scenarios
Change the office square footage to compare outcomes. Scenarios A and B use the same engine as the calculator above.
| Scenario | office square footage | deduction ceiling from the area |
|---|---|---|
| Current | -- | -- |
| Scenario A | -- | |
| Scenario B | -- |
Sensitivity to office square footage
How the deduction ceiling from the area moves as this one input changes, holding everything else fixed.
The IRS Simplified Method caps at 300 sq ft, so the maximum deduction is $1,500.
Worked example
250 sq ft × $5 = $1,250. At 300 sq ft it reaches the $1,500 cap; above 300 sq ft it stays at $1,500.
Related reading
Home Office Deduction Guide - IRS Simplified Method, who qualifies, and how to claim it.
Self-Employment Tax Guide - How home office deduction reduces SE tax liability.