Is a home office tax deductible?
It depends. A home office deduction usually requires that the space is used regularly and primarily for business (or is your principal place of business), and expenses are allocated based on business use.
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On this page: Short answer · Who this applies to · When it’s deductible · When it’s not deductible · Example · Records · Specific lookups · FAQ
Short answer
Depends. Home office expenses may be deductible when you meet the eligibility rules for your situation and you can support a reasonable allocation of household costs to business use.
The two big issues are eligibility (who can claim) and allocation (how much you can claim based on space/time/business use).
Who this typically applies to
- Self-employed / freelancers using part of their home as a regular workspace
- Contractors running admin, invoicing, and work coordination from a dedicated home workspace
- Small business owners operating from home as a principal place of business
Employees may have more limited options depending on current rules and whether expenses are reimbursed.
When it’s more likely deductible
- The space is used regularly and primarily for business (or as your principal place of business)
- You can calculate a reasonable business-use percentage (square footage and/or time)
- You keep receipts and documents for household expenses (rent, utilities, internet, etc.)
- You can explain the business purpose and how the workspace is used
When it’s not deductible (or risky)
- The space is mainly personal (multi-purpose area with limited business use)
- You claim 100% of household costs without support for allocation
- You don’t keep receipts or can’t explain the business purpose
- Expenses are reimbursed and you try to deduct them again
Example
Example: allocating household expenses
- Home size: 1,500 sq ft
- Office area: 150 sq ft
- Space allocation: 10%
- Monthly eligible household costs (example): $600
- Potential deductible portion: $60/month (before any other limits)
Some rules may require time-based adjustments if the space is not used exclusively for business.
What records to keep
- Workspace measurement notes (square footage) and/or time-use notes
- Rent or mortgage interest documents (as applicable)
- Utility bills (electricity, heat, water, etc.)
- Internet and phone bills (if claimed)
- Receipts for office repairs/maintenance that relate to the workspace
- A short note describing how the space is used for business
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Tools that can help
Home office claims usually require good receipts and categorization. Expense tracking can make year-end allocation easier.
FAQ
Is a home office tax deductible?
It depends. Home office deductions typically require that the space is used regularly and primarily for business (or is your principal place of business), and you must allocate expenses based on business use.
Can I deduct home office expenses if I work from home sometimes?
It depends. Occasional work from home may not qualify in some cases. Eligibility usually depends on specific rules, the type of worker (self-employed vs employee), and how the space is used.
What records should I keep for a home office deduction?
Keep a calculation of your business-use percentage (square footage and/or time), invoices/receipts for utilities/internet/rent, and notes showing how the space is used for business.
Looking for other deductible expenses? See the full Expense Deductibility Guide.
Last reviewed: January 2026