How to use the work from home deduction calculator
- 1 Enter the hours a week you work from home.
- 2 Enter the weeks you worked from home in the year.
- 3 Check the fixed rate per hour, 70 cents under current ATO rules.
- 4 Add equipment depreciation and enter your income to see the tax saved.
Worked example
An employee works 16 hours a week from home for 46 weeks. That is 736 hours at 70 cents, $515.20, plus $300 for equipment, a deduction of $815.20. On a taxable income of $90,000 it saves about $261 in tax and Medicare levy.
Records and the new standard deduction
- Record every hour: for the fixed rate method you need a record of all hours worked from home, such as timesheets, rosters or a diary kept through the year.
- Keep one bill: keep at least one bill for each expense the rate covers, such as electricity and internet.
- Not claimable: rent, mortgage interest and council rates, for most employees.
- Standard deduction: From 2026-27, the ATO applies a $1,000 standard deduction for work-related expenses automatically to people with labour income. Claiming actual work expenses reduces it dollar for dollar, so it only pays to claim and keep records if your expenses come to more than $1,000.
Bought a laptop or desk? Work out its decline in value with the Depreciation Calculator. See the effect on your refund with the Tax Refund Calculator.
Features
Fixed rate method
70 cents for every hour worked from home.
Equipment
Decline in value of computers and furniture added separately.
Tax saving
Deduction value at your marginal rate.
Editable rate
Update the rate if the ATO changes it.
When to use it
Hybrid workers
Claim for the days you work at home. Claim a laptop or desk with the Depreciation Calculator.
Full-time remote
Estimate a full year's claim. See your refund with the Tax Refund Calculator.
New equipment
Add a laptop or chair you bought for work. Also drive for work? Use the Car Expenses Deduction Calculator.
Tax time
Check the claim before lodging. Check your rate with the Income Tax Calculator.
Related Tax tasks
Frequently asked questions
What is the fixed rate method?
A simple way to claim working from home costs at 70 cents for each hour you work from home. It covers energy, internet, phone, stationery and computer consumables.
What records do I need?
A record of the actual hours you worked from home for the whole year, such as timesheets, rosters or a diary, plus one bill for each type of expense covered. Estimates are not accepted.
What can I claim on top of the fixed rate?
The decline in value of equipment like computers, desks and chairs, and repairs to them. Items costing $300 or less can be claimed in full.
What is the actual cost method?
You claim the actual work-related share of each expense, which needs detailed records such as itemised bills and a diary.
Can I claim rent or mortgage interest?
Generally no. Occupancy expenses can only be claimed in limited cases where your home is your place of business.
Can I claim if my employer pays?
No. You cannot claim costs that your employer reimburses.
Do I need a separate room?
No. The fixed rate method does not need a dedicated home office.
Can I claim for occasional work at home?
Yes, for the hours you actually work there, as long as you incur running expenses.
Can I claim both methods?
No. You choose one method for the year.
Does claiming reduce my tax by the full amount?
No. It reduces your taxable income, so the saving is the deduction times your marginal rate plus Medicare.
Does the $1,000 standard deduction change my claim?
From 2026-27, the ATO applies a $1,000 standard deduction for work-related expenses automatically if you earn labour income. Work expenses you claim, including working from home and car costs, reduce it dollar for dollar, so only claim and keep records if your expenses come to more than $1,000.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
· Last updated
· How we check our tools
· Report a problem