Home Office Deduction Calculator: Simplified vs. Regular

2026 tax year

Compare the 2026 home office deduction under the simplified method ($5 per square foot, up to 300) and the regular method (Form 8829), see which one gives you more, and roughly how much federal tax each saves.

Before you start: who can claim it

The space must be used exclusively and regularly for your business. A guest room or a desk the family also uses doesn't qualify.
W-2 employees can't deduct a home office, even when working from home for their employer. The deduction is for self-employed work only.

Try an example

Your home office

Office size

sq ft

Whole home

sq ft

Do you rent or own?

I rentI own

Annual costs for the whole home

Rent

What you pay for the whole home in a year.

Mortgage interest

On the loan used to buy or improve the home.

Property tax

Real estate taxes on the home.

Homeowner's or renter's insurance

Utilities

Electricity, gas, water, trash, internet you'd have anyway.

Repairs and maintenance

For the whole home, not just the office.

Depreciation for the office

Optional. Already figured for the business part (Form 8829, line 42). Regular method only.

Your business and taxes

Expected 2026 net profit, before the home office deduction

Both methods are limited to this amount.

Filing status

Your W-2 wages from a job

Optional.

Other taxable income

Optional. Interest and other income.

Type of work

Only matters above about $201,750 of taxable income ($403,500 joint), where the QBI deduction phases out. Service businesses lose it faster. Not sure? Keep the first choice, which gives the higher tax.

Your deduction, both ways

Simplified method

Federal tax saved, roughly: $0

Regular method

Federal tax saved, roughly: $0

How the numbers are figured

This calculator gives a general estimate for educational purposes only. It isn't personalized financial or tax advice. It treats every cost as a whole-home (indirect) expense split by the office's share of your floor area, and assumes you take the standard deduction. If you itemize, the business part of mortgage interest and property tax goes on Form 8829 lines 10–11 instead and isn't limited by your profit, and under the simplified method you keep all of it on Schedule A. The tax savings figure is federal only, assumes your paycheck withholding is right for any W-2 wages, and leaves out state tax and credits. Read our full Financial Disclaimer.

Home Office Deduction for the Self-Employed: the rules and a worked example
The QBI Deduction Explained for Freelancers: how a lower profit changes your 20% deduction
Quarterly Estimated Taxes for the Self-Employed: turn the tax saved into smaller payments

Sources

The official, primary sources behind the figures and rules on this page.