2026 Home Office Deduction Calculator
Compare the IRS simplified method ($5 / sq ft) and regular method side by side. Pick whichever legally maximizes your deduction — instantly.
Your Home Office
Simplified Method (IRS)
Regular Method (Form 8829)
* Estimates only. The regular method deduction cannot exceed your net business income (before home office). Excess can be carried forward.
Simplified vs. Regular — Which Should You Pick?
Simplified Method Pros
- No need to track or allocate home expenses
- Very little paperwork — no Form 8829 required
- Great for side hustles and small offices (≤ 300 sq ft)
- Still qualifies you for the home office deduction
Regular Method Pros
- Can produce a larger deduction for bigger offices
- Deducts actual mortgage interest, taxes, utilities, depreciation
- Allows carry-forward of excess deductions to future years
- Required if you want to deduct actual depreciation
Key IRS Rules
- Office space must be "exclusive and regular" use
- Deduction limited to net business income (regular method)
- Simplified method cannot create a loss
- Methods can be changed year-to-year
Home Office Deduction FAQs
For 2026, the IRS simplified method rate is $5 per square foot of qualified home office space, up to a maximum of 300 square feet ($1,500 deduction). This is the same rate as 2025.
You must use a portion of your home regularly and exclusively as your principal place of business, a place to meet clients, or for administrative/management activities. The space must be used only for business.
Use this calculator to compare both. Generally, the simplified method is easier and works best for small offices. The regular method may produce a larger deduction if you have a larger office or high home expenses.
Yes. You can choose the simplified or regular method each year, as long as you qualify. You cannot change the method for the same year after filing, but each tax year stands alone.