Disclaimer: This calculator provides estimates only and should not be considered financial or tax advice. Work from home deduction rules are set by the ATO and subject to change. The fixed rate method applies from 1 July 2022. Always keep records and consult a registered tax agent before lodging a claim. Evercend Pty Limited does not hold an Australian Financial Services Licence.
Work from home tax deduction calculator inputs and results
Working hours
Default 48 weeks allows for leave and public holidays.
Floor areas
Annual costs
Items under $300 claimed immediately. Larger items depreciated over effective life.
Your income
Used to estimate your tax saving at your marginal rate.
Enter your working hours to begin
Enter hours worked from home per week to calculate your deduction at the ATO fixed rate of 70 cents per hour.
Work from home tax deductions in Australia
This calculator estimates the deduction for additional running costs incurred while working from home, using the two methods the Australian Taxation Office accepts: the fixed rate method and the actual cost method. Under the fixed rate method the deduction is a set rate for each hour worked from home. Under the actual cost method the deduction is the work-related portion of the actual expenses. The right method depends on hours worked from home, the level of running costs, and the records kept.
How to use this calculator
Choose a method
Choose a method. The fixed rate method needs a record of hours worked from home. The actual cost method needs receipts and a basis for splitting each expense into its work-related portion.
Use the fixed rate method
For the fixed rate method, enter the total hours worked from home for the income year to see the estimated deduction at the current rate.
Use the actual cost method
For the actual cost method, enter the work-related portion of each running expense to see the estimated deduction. Compare the two results to see which is higher for the situation entered.
How this calculator works
The fixed rate method multiplies the hours worked from home by a set hourly rate. The current ATO rate is 70 cents per hour, which applies to the 2024-25 and 2025-26 income years. The rate is set by ATO administrative guideline rather than by statute, so it is revised from time to time and the current published rate applies until the ATO changes it. The fixed rate covers the additional running expenses of energy (electricity and gas), internet and data, mobile and home phone usage, stationery and computer consumables. Where the fixed rate is used, these expenses cannot also be claimed separately. A separate home office or dedicated work area is not required to use this method. The decline in value of depreciating assets used for work, such as desks, chairs, laptops and monitors, sits outside the fixed rate and is claimed separately under either method. An item costing $300 or less that is used mainly for work can be claimed in full in the year it is bought. A higher-cost item declines in value over its effective life. The actual cost method claims the work-related portion of each additional running expense incurred as a result of working from home. Only the work-related portion is deductible, and the split reflects private use and use by other household members. This method can produce a larger deduction where running costs are high, but it needs detailed records. Occupancy expenses, which are the costs of owning or renting the home such as rent, mortgage interest, rates and home insurance, are generally not available to employees. They require part of the home to have the character of a place of business, and claiming them can affect the main residence exemption from capital gains tax. Claiming running expenses alone has no capital gains tax effect.
Assumptions used
The fixed rate figure uses 70 cents per hour, the current ATO rate for the 2024-25 and 2025-26 income years. The ATO had not published a separate 2026-27 rate at the time this page was checked. The estimate covers running expenses only. It does not calculate the decline in value of depreciating assets or any occupancy expenses. The fixed rate method assumes a record of the actual hours worked from home for the whole income year. Estimates of hours are not accepted for the fixed rate.
Worked example
Assume a person works from home an average of 15 hours a week for 48 weeks, which is 720 hours for the year, and uses the fixed rate method.
The fixed rate deduction is 720 hours multiplied by 70 cents. 720 multiplied by $0.70 is $504. The decline in value of a desk and chair used only for work would be claimed separately, on top of this amount.
The estimated fixed rate deduction is $504 for the year, before any separate claim for depreciating assets. This is an example only and is not a prediction for any individual.
What changes your work from home deduction
Several things change the size of your work from home tax deduction. The main ones are:
Method chosen
The fixed rate method uses a set hourly rate. The actual cost method uses the work-related portion of actual expenses. They cannot both be used for the same expenses.
Hours worked from home
Under the fixed rate method the deduction rises directly with the recorded hours worked from home for the year.
What the fixed rate covers
Energy, internet and data, phone usage, stationery and computer consumables are inside the rate and cannot be claimed again separately.
Depreciating assets
Furniture and equipment used for work are claimed separately from the fixed rate. Items $300 or less used mainly for work can be claimed in full in the year of purchase.
Record keeping
The fixed rate method needs a record of the actual hours worked from home for the whole year, plus at least one bill for each covered expense. The actual cost method needs receipts and a basis for each apportionment.
Occupancy expenses
Rent, mortgage interest, rates and home insurance are generally not available to employees, and claiming them can affect the main residence capital gains tax exemption.
Rates and assumptions used
| Item | Value used | Source |
|---|---|---|
| 2024-25 and 2025-26 | 70 cents (current) | ATO |
| 2022-23 and 2023-24 | 67 cents | ATO |
| 2020-21 and 2021-22 | 52 cents | ATO |
Figures checked against the sources above on 10 August 2026.
Frequently asked questions
The ATO fixed rate is 70 cents per hour for the 2024-25 and 2025-26 income years. A separate 2026-27 rate had not been published at the time this page was checked, so 70 cents is the current published rate.
Related calculators and guides
Sources
- •ATO, Working from home expenses
- •ATO, Fixed rate method
- •ATO, Actual cost method
- •ATO, Occupancy expenses
- •ATO, myTax 2026 Other work-related expenses
Content reviewed and figures checked against the sources above on 10 August 2026.