Work-from-home deduction calculator

The ATO fixed-rate deduction for your hours, and the tax it saves.

For 2025-26, the ATO fixed rate for working from home is 70 cents per hour. 1,000 hours gives a deduction of $700; on a taxable income of $90,000 that lowers tax by about $224. The 2026–27 rate has not been published yet.

Hours worked from home in 2025-26

Taxable income before this deduction (AUD)

Deduction

$700

Tax it saves (income tax + Medicare levy)

$224

Per 38-hour week

$26.6

What the rate covers

• Home and mobile internet or data
• Mobile and home phone usage
• Energy for heating, cooling and lighting
• Stationery and computer consumables

These can't be claimed separately when you use the fixed rate method.

Claimed separately

• Decline in value of work equipment and furniture (computers
• desks
• chairs)
• Repairs to those items
• Items costing $300 or less used mainly for work

Records you need

• A record of the actual hours worked from home for the whole year (timesheet
• roster or diary) – estimates are not accepted
• At least one record (e.g. a bill) for each running expense the rate covers

Sources

• ATO: Fixed rate method

Figures last checked against official sources: 2 November 2026 at 4:14 pm Sydney time. General information, not financial or tax advice.

Related calculators

Take-home pay calculatorIncome tax, low income tax offset and Medicare levy at resident rates.Hourly to annual salary converterHourly rate to yearly, monthly, fortnightly and weekly pay (or back), with take-home pay at 2026–27 rates.Pay rise calculatorHow much of a pay rise you keep after tax, per year, month and fortnight, at 2026–27 rates.

Terms on this page

ATO · Australian Taxation Office

The Australian Government agency that runs the tax and super systems.

AUD · Australian dollars

All amounts on this site are in Australian dollars unless stated.

All terms