SnapTax
Home Office Deduction Calculator
Enter your square footage and yearly home costs. We'll compare both IRS methods side by side and show which gives you the bigger deduction.
Quick Answer
The home office deduction equals either $5 per square foot of dedicated office space up to 300 square feet (simplified method, $1,500 max) or your office's percentage of rent or mortgage interest, utilities, and insurance plus direct office repairs (regular method, Form 8829). Larger offices and higher-cost homes usually do better with the regular method.
Frequently asked questions
How is the home office deduction calculated?
There are two IRS methods. The simplified method is $5 per square foot of office space, up to 300 square feet ($1,500 maximum). The regular method multiplies your shared home costs — rent or mortgage interest and property tax, utilities, and insurance — by your business-use percentage (office square feet ÷ home square feet), plus any repairs to the office itself.
Who qualifies for the home office deduction?
Self-employed people who use part of their home regularly and exclusively for business, and as their principal place of business (or to meet clients). W-2 employees generally can't claim it on their federal return under current law.
Can I switch between the simplified and regular method?
Yes. You can choose either method each year. Under the regular method, homeowners also depreciate the business portion of the home, which can be recaptured when you sell — the calculator leaves depreciation out.
Does it matter if I rent or own?
Both renters and owners qualify. Renters use rent in the regular method; owners use mortgage interest, property tax, and depreciation. Mortgage principal isn't deductible.
