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Tax

Home Office Deduction Calculator

Compare simplified vs actual home office deduction methods and tax savings.

Updated June 2026 · Editorial standards

Home office details

$
%
Best deduction
$2,400
Simplified method
$1,000
Actual method
$2,400
Estimated tax savings
$576

The actual method gives the larger deduction: $2,400, saving about $576 in taxes.Your office is 10% of your home. Simplified method: $1,000 ($5/sq ft up to 300 sq ft). Actual method: $2,400 (10% of $24,000).

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the home office deduction calculator?

In short

The home office deduction can be calculated two ways: the simplified method ($5/sq ft up to 300 sq ft, max $1,500) or the actual method (your office's percentage of total home expenses). For a 200 sq ft office in a 2,000 sq ft home with $24,000 in expenses, actual gives $2,400 vs $1,000 simplified.

Compares the simplified and actual-expense methods for the home office deduction and shows which yields a larger deduction plus your estimated tax savings.

How to use this calculator

  1. 1Enter your office square footage and total home square footage.
  2. 2Enter your annual home expenses (rent/mortgage interest, utilities, insurance, repairs).
  3. 3Set your marginal tax rate to estimate tax savings.
  4. 4See which method gives the bigger deduction.

The formula

simplified=min(sqft,300)×$5
actual=expenses×officeSqfthomeSqft
simplified = min(sqft, 300) × 5; actual = expenses × (officeSqft / homeSqft); savings = max(simplified, actual) × rate
simplified
— min(office sq ft, 300) × $5
office%
— office sq ft / home sq ft
actual
— home expenses × office%
savings
— best deduction × tax rate

Worked example

The scenario

200 sq ft office, 2,000 sq ft home, $24,000 annual expenses, 24% tax rate.

gives

The result

Simplified: $1,000. Actual: $2,400 (10% of expenses). Best: $2,400, saving ~$576 in tax.

Common use cases

  • Self-employed individuals and freelancers claiming a home office.
  • Comparing the simplified vs actual method to maximize the deduction.
  • Estimating the tax value of a dedicated home workspace.

Limitations & assumptions

  • The space must be used regularly and exclusively for business to qualify.
  • W-2 employees cannot claim the home office deduction (suspended through 2025).
  • The actual method requires depreciation recapture when you sell your home.

Frequently asked questions

It's a flat $5 per square foot of office space, up to 300 square feet, for a maximum deduction of $1,500. No expense records or depreciation are required.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.