Work From Home Tax Deductions Calculator
Calculate your working from home tax deductions using the ATO fixed rate method. See how much you can claim for WFH hours plus office equipment, and your actual tax saving.
Typically 48 (excl. 4 weeks leave)
This estimates prime-cost depreciation. Items ≤$300 mainly used for work may qualify for an immediate deduction if they are not part of a set or identical group costing more than $300.
Used only to estimate the before-and-after tax saving
Enter your WFH hours and income to calculate your tax deduction
Fixed rate method
The ATO fixed rate method lets you claim 70 cents per hour worked from home (2026-27 rate). This single rate covers electricity, gas, phone, internet, and stationery costs.
You cannot claim these covered running expenses separately for the same hours. The fixed rate requires fewer category-by-category calculations than actual cost.
Equipment depreciation
Office equipment like desks, chairs, computers, and monitors can be claimed separately from the 70c rate. These are depreciated over their effective life.
Items costing $300 or less may qualify for an immediate deduction when they are mainly used for work and pass the ATO set/group tests. Other items decline in value over time.
Record keeping
You must keep records of your actual hours worked from home — estimates are not accepted. Use a diary, timesheet, roster, or time-tracking app.
You also need at least one bill for each expense type (e.g., one electricity bill, one internet bill). Keep all records for 5 years.
Fixed-rate method: what 70¢ per hour actually covers
The fixed rate method under PCG 2023/1 bundles covered running-cost categories into a single 70¢-per-hour deduction from 1 July 2024. The guideline's published table sets 67¢ for 2022-23 and 2023-24, then 70¢ from 1 July 2024.
Included in the 70¢ rate
Not included — claim separately
The biggest behavioural change from the old "shortcut" 80¢ method (COVID-era, expired 30 June 2022) is the record-keeping standard. Under PCG 2023/1 the ATO requires actual hours for the full year — diary entries, timesheets, roster screenshots, or time-tracking app exports. A 4-week sample diary, which was acceptable under the shortcut, no longer satisfies fixed-rate substantiation.
You also need at least one bill for each expense type the rate covers, kept for 5 years — this is how the ATO confirms you actually incurred costs rather than claiming hours alone. It does not need to be every bill; one electricity bill, one internet bill, etc. is sufficient.
Actual-cost method: calculate each expense separately
The actual-cost method claims the additional running expenses you incur as a direct result of working from home. Each category needs its own fair and reasonable calculation supported by records. A whole electricity, gas, phone or internet bill is not automatically a work expense.
Work-use apportionment
For energy, the ATO expects a calculation based on the cost per unit, the units used per hour by each appliance and work-related use. For phone and internet, a representative continuous 4-week record can establish the work-use pattern when it reflects the income year. Other costs require their own receipts and apportionment.
actual-cost claim = sum of each separately calculated work-related amount
The comparison fields above therefore ask for the work-related amount already calculated for each category. They intentionally do not apply one percentage to all household bills, because that shortcut can materially overstate or understate the deduction.
Occupancy expenses (such as rent, mortgage interest, council rates and building insurance) are outside this calculator. Employees generally cannot claim them unless the home is a place of business and the ATO conditions are met. Claiming occupancy expenses can also affect the main-residence CGT exemption.
Do not claim an expense twice: a running expense covered by the fixed rate cannot also be claimed as an actual cost for the same hours. Equipment decline in value, eligible cleaning and repairs are not included in the fixed rate and may be claimed separately when the ATO conditions are met.
Office equipment: separate from the running-cost rate
Depreciation of office equipment is claimable on top of either the fixed-rate or actual-cost method. The mechanics depend on the cost of the item: a $250 desk chair is treated very differently from a $2,000 standing desk.
Cost ≤ $300
Immediate deduction in the year of purchase — under s 40-80(2) ITAA 1997.
The item must be used mainly for work and must not be part of a set, or an identical/substantially identical group, costing more than $300. Apply the work-use percentage.
Prime-cost estimate
The calculator uses the ATO prime-cost formula and prorates the first-year amount for days held.
It then applies your work-use percentage.
Other methods
Diminishing value and low-value pooling can produce different results.
Use the ATO depreciation tool or a tax adviser if those apply; this calculator does not estimate them.
| Asset category | Effective life (years) | Prime-cost rate |
|---|---|---|
| Laptop / tablet | 2 | 50% |
| Desktop computer | 4 | 25% |
| Monitor | 4 | 25% |
| Multi-function printer | 5 | 20% |
| Office chair | 10 | 10% |
| Desk / workstation | 20 | 5% |
The prime-cost formula is asset cost × days held ÷ 365 × 100% ÷ effective life, followed by the work-use percentage. For example, a $3,000 desktop held for 146 days, with a 4-year effective life and 40% work use, gives a $120 estimate.
Work-use percentage applies to every asset claim — a $1,200 desk used 30% for work claims depreciation on $360 of base, not the full $1,200. Be honest with the percentage; the ATO can request your rationale during review.
Worked example: which method wins?
Same employee, same hours, two methods. The dollar gap shows why the "Compare with Actual-Cost Method" toggle exists.
Scenario: Marketing professional, 3 days WFH × 8 hours × 48 weeks = 1,152 hours/year.
After applying the ATO's category-specific calculations to their records, the employee has $960 additional energy, $720 work-related internet, $432 work-related phone and $200 work-related stationery. Taxable income before the claim is $95,000.
Fixed-rate method
Actual-cost method
In this hypothetical, actual cost is higher by about $482 in estimated tax saved. That comparison is valid only because each actual-cost entry is a documented work-related amount rather than a percentage applied to the whole household bill.
Your outcome can differ substantially with appliance efficiency, tariffs, household usage and work patterns. There is no reliable household-bill tipping point: calculate both methods from your own records.
Records the ATO actually wants to see
Keep written evidence for 5 years from the date you lodge your return. The exact evidence differs between the fixed-rate and actual-cost methods.
For fixed-rate (70¢) method
For actual-cost method
For the fixed-rate method, an estimate such as "about 25 hours a week" is not a record of actual hours under PCG 2023/1. Build the record as you go using a diary, calendar, timesheet, roster or time-tracking app.
What is the ATO fixed rate for working from home in 2026-27?
Can I claim my desk and computer separately from the 70c rate?
How many hours can I claim for working from home?
What records do I need to keep for WFH deductions?
Should I use the fixed rate method or actual cost method?
Do I need a dedicated home office to claim WFH deductions?
Can I claim cleaning and tea/coffee while working from home?
What if my employer reimburses some of my WFH costs?
Does the 70¢ rate change for 2026-27?
I work occasional evenings from home — can I still claim?
Tax Accuracy & Sources
Estimates the 70c fixed-rate method and compares it with user-calculated actual work-related expenses. Equipment uses a prime-cost estimate only; diminishing value, low-value pooling, occupancy expenses, family Medicare adjustments, MLS and offsets other than LITO are outside scope.