If you work from home and are also self-employed, an independent contractor, or a freelancer, you may be able to write off a portion of your rent as a home office expense. To do so, you’ll need to calculate the percentage of your home you use “exclusively and regularly” for business. This benefit is not available for W-2 employees.

There are two methods you can choose from when calculating the rent expense for your home office deduction:

Simplified method: Using this method, you can deduct $5 for every square foot used for business purposes (maximum deduction of $1,500).

Regular method: Using the regular method, you can deduct the actual percentage you pay in rent based on the percentage of your home you use for business. For example, let’s say you use 500 sq. ft. of a 2,000 sq. ft. home for business. You can deduct 25% of your rent.

If you are self-employed and work from home, there are many tax deductions you could be taking advantage of. Don’t miss a single one. Talk taxes with a pro today to maximize your tax benefits and get every dollar you deserve.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 28, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.