Home Office Tax Deduction Calculator
Enter your office size and home running costs to compare the simplified flat-rate method against the actual-expense method, and see which gives you a bigger deduction. Covers the US, UK, and Canada. Nothing uploaded.
Country
Your workspace
Result
Simplified method
Actual-expense method
Learn more: simplified and actual-expense home office deductions
The US methods
The IRS says that if you are self-employed or a partner, you may be able to deduct expenses for the part of your home that you use for business. Under the simplified method you use a prescribed rate of $5 per square foot of the business area, up to a maximum of 300 square feet, so the most you can deduct this way is $1,500.
The actual-expense method takes your real home costs and multiplies them by the share of the home the office takes up. A 200 square foot office in a 2,400 square foot home is 8.3%. With $24,000 of annual costs the actual method gives $2,000, against $1,000 under the simplified method. The actual method tends to win when home costs are high and the office is small, and the simplified method needs no receipts.
Employees and the US deduction
The IRS's Publication 587 opens its qualification flowchart with the question "Are you using the part of your home as an employee?", and you need to answer no to go on to the deduction. A remote employee therefore cannot take it, even if the employer requires home working. The calculator is for the self-employed and says so.
The UK flat rate is for the self-employed
GOV.UK's simplified expenses guidance gives self-employed people a flat monthly amount for working from home: £10 for 25 to 50 hours a month, £18 for 51 to 100 and £26 for 101 or more. You can only use it if you work 25 hours or more a month from home, and it replaces working out the business share of costs like heating and electricity.
Employees are different. GOV.UK says that from the tax year 6 April 2026 to 5 April 2027, you will not be able to claim tax relief for working from home. The calculator's flat-rate and actual-expense figures apply to self-employed people only.
Canada
The temporary flat rate of $2 a day, capped at $500, applied only to the 2020 to 2022 tax years. The calculator shows it for reference and points you to the detailed method, which uses the share of the home and your actual costs.
FAQ
I am a W-2 employee in the US. Can I claim anything?
Not this deduction. The IRS qualification flowchart requires that you are not using the space as an employee. Check your state's rules separately, since states have their own tax returns.
Which method gives the bigger deduction?
It depends on your costs and office size. The US simplified method tops out at $1,500, so a small office in an expensive home usually does better with actual expenses if you keep the records.
Does the UK flat rate need receipts?
No. It is a fixed monthly amount based on hours worked at home. GOV.UK says telephone and internet costs can be claimed separately by working out the business share. This tool is an estimate, so check the current rules or ask an accountant before you file.