Working from Home Deduction Calculator
Compare the ATO fixed rate ($0.70/hr 2025-26) versus actual cost method for your work-from-home tax deduction.
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
Frequently Asked Questions
What's the WFH fixed rate for 2025-26?
What records do I need for the fixed rate?
When is the actual cost method better?
Can I claim my mortgage interest or rent under WFH?
What is Working from Home Deduction?
Two ATO-approved methods for claiming a tax deduction when you work from home. The Fixed Rate Method (PCG 2023/1) gives you $0.70/hour for 2025-26 covering electricity, gas, internet, phone and stationery. The Actual Cost Method requires receipts and a work-use percentage but can yield bigger deductions for dedicated home offices.
How this calculator works
Enter the total hours you worked from home for the financial year and your marginal tax rate. The fixed-rate calculation is simply hours × $0.70 × marginal rate = refund. For actual cost, enter your annual electricity, internet and phone bills with a work-use percentage, plus stationery and depreciation of equipment. The calculator shows both methods and recommends the better one for your situation.
The Fixed Rate Method (Most Common)
Per PCG 2023/1, the rate is $0.70 per hour for 2025-26 (up from $0.67 in 2024-25). It's a single rate covering: electricity, gas, internet, mobile phone, home phone, and stationery/computer consumables. You CANNOT separately claim any of these costs if using the fixed rate. You CAN still separately claim depreciation on big-ticket items like laptops, desks, monitors, and any work-related expenses NOT covered by the rate.
Records Required for Fixed Rate
Since 1 March 2023, the ATO requires a record of EVERY hour worked from home — a diary, timesheet, calendar, or roster. The old 4-week representative sample is no longer accepted for fixed rate. You also need at least one bill for each utility/service the rate covers, to demonstrate you incurred the costs (you don't claim the bills, just prove they exist).
The Actual Cost Method
Calculate the actual work-related portion of every running cost: electricity (kWh × work hours × tariff), heating/cooling, internet (work-use %), phone (call logs analysis), stationery (receipts), depreciation of computers/furniture (TR 2024/1 effective lives). Requires a 4-week representative diary to establish work-use percentages. More admin, but rewards setups with high power use, dedicated equipment, or large home offices.
Occupancy Expenses: Tread Carefully
Rent, mortgage interest, council rates, building insurance — these are 'occupancy expenses'. Employees almost never claim these because doing so makes part of your home a 'place of business', triggering CGT on a portion of any future capital gain when you sell your home. Sole traders running a business from home with no other premises may claim a portion, but the long-term CGT cost often outweighs the short-term deduction.
Depreciation of Equipment
Items costing $300 or less and used wholly for work can be claimed in full immediately. Items over $300 (laptops, desks, monitors, ergonomic chairs) must be depreciated over their effective life — typically 2 years for laptops, 4 years for monitors, 10 years for office furniture (per TR 2024/1). Apply your work-use percentage to the depreciation amount.
Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).
All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.
Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.