Work From Home Deduction Calculator
Estimate your working-from-home tax deduction using the ATO fixed-rate method, your own cents-per-hour rate, or the actual cost method for itemised expenses.
Your results
Calculation breakdown
- Deduction
- 1000 hours × 0.7 = $700.00
Assumptions
- The fixed/manual rate already covers: Electricity and gas for lighting, heating and cooling, Home and mobile internet or data, Home and mobile phone usage, Stationery and computer consumables. These are not claimed separately.
- Fixed rate data: 2025–26 onwards · Source: Australian Taxation Office · Last verified 2026-07-01
- You must keep a record of all hours worked from home for the whole income year.
- You need at least one bill for each additional running cost you are claiming.
- You can only claim the work-related portion of any expense.
How this calculator works
The ATO offers more than one way to claim a deduction for working from home, and the best method depends on your circumstances and record-keeping. The fixed-rate method applies a set cents-per-hour rate covering electricity, internet, phone and other running costs to the hours you actually worked from home, and requires a record of those hours; it's simple but the rate is only published for years the ATO has verified. The actual cost method instead totals your real electricity, internet, phone, stationery and equipment decline-in-value costs and applies your genuine work-use percentage to each, which can produce a larger deduction if you have good records but requires more substantiation. This calculator lets you switch between the fixed-rate method (using the published rate for the selected financial year, or flagging when no verified rate is available), a manual rate you supply yourself, and the actual cost method with itemised expenses.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 01/07/2026.
Frequently asked questions
Which method gives the biggest deduction?
It depends on your actual expenses and work-use percentage. The fixed-rate method is simpler but may understate costs if you run significant equipment or have high electricity use, while the actual cost method can be larger but demands detailed records and receipts.
What records do I need to keep?
For the fixed-rate method you need a record of hours worked from home, such as a timesheet, roster or diary. For the actual cost method you need receipts or bills for each expense plus a reasonable basis for your work-use percentage.
Can I claim occupancy costs like rent or mortgage interest?
Generally no, unless you run a business from a dedicated home office and meet specific ATO conditions, in which case different rules and potential capital gains tax consequences on your home can apply. Most employees can't claim occupancy costs.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.