Calculate your 2025 home office deduction using both the Simplified Method ($5/sq ft, max 300 sq ft) and the Regular (Actual Expense) Method. The calculator automatically identifies which method gives you the larger deduction.
Home Office Details
Enter your space measurements and home expenses
Space Measurements
sq ft
sq ft
hrs/wk
Annual Home Expenses (Regular Method)
$
$
$
$
$
$
$
Business Use
$
Best Method — Use This Deduction
Simplified Method
$5 × sq ft
Regular Method
Actual Expenses
Regular Method Breakdown
Business use %
Total indirect expenses
Indirect × business %
Direct office expenses
Regular method total
Simplified Method Breakdown
Allowable sq ft (max 300)
IRS rate (2025)$5.00/sq ft
Simplified method total
📋 Eligibility Rules
Space must be used regularly and exclusively for business (or day care). Personal use, even occasional, disqualifies it.
Must be your principal place of business, OR a place where you meet clients/patients regularly, OR a separate structure used for business.
Employees can only claim home office if it's for the convenience of the employer (rare post-TCJA for W-2 workers).
Deduction cannot exceed net business income for the year.
⚖️ Simplified vs Regular
Simplified: $5/sq ft × office sq ft (max 300 sq ft = $1,500 max). No depreciation recapture on sale. Easier record-keeping.
Regular: Actual expense allocation. Higher deduction for large homes with high costs. Home depreciation deduction available. Subject to recapture on home sale.
You can switch methods year to year, but unused carryover under the regular method is lost.