Taxorly AI Tax Advisor
Answered June 4, 2026
To calculate your home office deduction, you'll need to determine the business use percentage of your home. Let's say you have a 1,000 square foot home and you use 200 square feet for your business. That's 20% of your home.
If your rent is $1,500 per month, your home office deduction would be $300 per month (20% of $1,500). For the year, that's $3,600 (12 months x $300). You can also deduct a portion of your utilities, insurance, and other expenses.
For 2026, the IRS allows a simplified option, which is $5 per square foot of home office space, up to a maximum of $1,500. If you have a 200 square foot home office, your deduction would be $1,000 (200 square feet x $5).
Try our Home Office Deduction Calculator at taxorly.com/home-office-calculator.
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