Work From Home Tax Calculator

Choose the Deduction Method

The fixed-rate work-from-home deduction combines recorded hours at the hourly rate with eligible separate deductions. The actual-cost method uses substantiated expenses. This calculator compares 2024-25 and 2025-26 for an Australian resident adult.

The fixed rate is 70 cents per hour in both supported years. Keep the full year’s actual hours record and evidence of each covered expense incurred. A diary, timesheet or roster can record hours. A sample period extended across the year does not meet the fixed-rate hours requirement.

The ATO’s fixed-rate guidance explains the hourly calculation and records. The ATO also confirms the 2025-26 rate.

Recorded Hours and Expenses

Enter the work-related share of running costs in the actual-cost field. Energy, phone, internet and stationery or computer consumables are covered by the fixed rate. Their actual costs appear only in the alternative calculation.

Put eligible equipment deductions and repairs in separate deductions. Enter the calculated work-related deduction, including decline in value where required, rather than the equipment’s full purchase price. The calculator adds this separate amount once under each method.

Incorrect: add phone costs to the fixed-rate claim again. Correct: keep phone costs in actual running costs for comparison. Choosing rate-covered costs for a positive separate amount produces an error. Missing hours records or zero hours also prevents a fixed-rate result.

For actual costs, retain bills and the basis for removing private use. The ATO’s actual-cost guidance explains expense evidence and apportionment. Use only eligible costs you incur, after reimbursements. Occupancy costs, such as rent and mortgage interest, are outside this tool.

Compare the Deduction Results

Compare the two deductions separately, then select the supported method for the headline result. The tool never adds the fixed-rate deduction to the actual-cost deduction. A larger figure is usable only when the client meets that method’s requirements.

A deduction reduces taxable income. The estimated income-tax reduction compares tax before and after the selected deduction, including the low income tax offset. It uses the resident income-tax brackets and the ATO’s low income tax offset rules.

A Working-From-Home Claim

In this fictional example, an employee records 1,152 hours at home. Eligible equipment deductions and repairs total $235. The substantiated work-related running costs are $680, and taxable income before this claim is $81,245.

The fixed-rate calculation is 1,152 hours multiplied by $0.70, plus $235. Disregarding cents on the completed deduction gives $1,041. Actual costs give $680 plus $235, or $915. The selected fixed-rate claim reduces taxable income to $80,204 and estimated income tax by $312. Selecting actual costs gives a $275 estimated reduction.

Income changes the benefit. With the same deductions and $20,000 taxable income before the claim, both estimated income-tax reductions are $0 after the low income tax offset.

The Working From Home Result

The result shows the selected deduction, the alternative deductions and taxable income after the claim. Cents are disregarded on each completed deduction. Estimated tax reductions display whole dollars after the tax calculation.

The tax estimate excludes Medicare, the Medicare levy surcharge, study-loan repayments and other offsets. It does not calculate a refund, which also depends on withholding and the rest of the return. Reconcile the selected method with the client’s records before entering the deduction.

Entered hours and amounts stay in your browser. The tool sends no calculation inputs to Tax Genie or the ATO and saves none in browser storage.