Taxorly AI Tax Advisor
Answered June 4, 2026
The home office deduction is a tax deduction for self-employed individuals and freelancers who use a part of their home for business purposes. In 2026, you can deduct $5 per square foot of home office space, up to a maximum of $1,500. For example, if you use 300 square feet of your home as a dedicated office, your deduction would be $5 x 300 = $1,500.
To qualify, your home office must be used regularly and exclusively for business. This means you can't claim a deduction for a space that's also used for personal activities. You'll need to keep records of your home office expenses, such as mortgage interest, rent, utilities, and insurance.
You can choose between the simplified option (the $5 per square foot method) or the actual expenses method, which requires more record-keeping but may result in a larger deduction. Try our Home Office Deduction Calculator at taxorly.com/home-office-calculator.
⚠️ Consult a CPA for personalized advice.