Home Office Deduction Calculator

Compare the simplified $5/sqft method vs actual expense method for your 2026 home office deduction.

Simplified caps at 300 sq ft = $1,500 max, no receipts. Actual can be far bigger in high-rent cities but requires Form 8829.

Home office inputs

Space must be used regularly and exclusively for your business.

Home office deduction (simplified)
$750
Est. tax savings
$280
Business-use %
10.0%

Method comparison

Simplified method ($5/sqft × up to 300)$750
Actual expense method$2,952
Better by$2,202

Simplified: no depreciation recapture on sale, no receipts. Actual: bigger deduction if rent + utilities are high, but requires Form 8829 and depreciation tracking.

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