Working From Home Tax Deduction Calculator

This calculator estimates the tax deduction you can claim for working from home in New Zealand by apportioning your household costs to the area you use for work, and shows the tax that saves you at your marginal rate. If you are self-employed or run a business from home, the part of your home given over to work earns you a deduction against your income, because a share of the costs of running the house, the power, rates, insurance, and mortgage interest or rent, relates to earning that income. The most common method is to work out the floor area of your work space as a percentage of your home's total floor area, then apply that percentage to your apportionable household costs for the year. You enter the area of your home office, your home's total floor area, your annual household costs and your marginal tax rate, and the calculator works out your work-space percentage, the deductible amount, and the tax it saves. Use it to estimate your claim and to see that even a modest home office adds up over a year. Phone and internet used for work can usually be claimed separately on a reasonable basis, and IRD also offers a square-metre rate method that some find simpler. Keep good records either way. General information, not tax advice.

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Apportionment method on shared household costs; claim work phone and internet separately. IRD also offers a square-metre rate method. Keep records. General information only.