Work From Home & Car Deduction Calculator
Work out your working-from-home deduction at 70c an hour and your car claim at the cents per km rate, plus the tax you'll save.
Printed from ClearCalc (clearcalc.com.au/work-from-home-deduction-calculator/). Estimates only, not financial advice.
Working from home: the fixed rate method
If you work from home, you can claim 70 cents for every hour you work from home using the ATO's fixed rate method. It's been 70c since 1 July 2024 and applies for 2025–26. The ATO hadn't announced a different rate for 2026–27 as at October 2026, so this calculator uses 70c for both years.
The fixed rate covers electricity and gas, phone, internet, stationery and computer consumables. You can't claim those separately as well, but you can still claim the decline in value of equipment like a laptop, desk or chair, and repairs to them. For example, 16 hours a week for 46 weeks is 736 hours, a deduction of $515.20.
Records you need
- A record of the actual hours you worked from home for the whole year, such as timesheets, rosters or a diary. An estimate or a four-week sample isn't enough.
- One document for each type of expense covered by the rate, such as a phone bill and an electricity bill.
Car expenses: cents per kilometre
If you use your own car for work (not just driving between home and work), you can claim a set rate per kilometre for up to 5,000 km per car each year, without a logbook:
- 2026–27: 91c per km (an indexed 89c plus a one-off 2c increase), so up to $4,550.
- 2025–26: 88c per km, the same as 2024–25, so up to $4,400.
The rate covers all running costs, including fuel, servicing, insurance, registration and depreciation. You need to show how you worked out your kilometres, for example with diary entries for your work trips.
How much tax will it save?
A deduction reduces your taxable income, so the saving is the deduction times your marginal tax rate plus the 2% Medicare levy. A $1,000 deduction saves $320 on the 30% rate. Your refund also depends on everything else in your return, so try the tax return calculator. If you're buying a laptop for work, the work equipment salary sacrifice calculator may save you more.
Frequently asked questions
What is the work from home rate for 2025–26?
70 cents per hour worked from home, using the fixed rate method. You need a record of all your actual hours.
What is the cents per km rate for 2026–27?
91 cents per kilometre, up to 5,000 km per car. For 2025–26 tax returns, the rate is 88 cents.
Can I claim my laptop as well as the fixed rate?
Yes. The fixed rate doesn't cover equipment, so you can claim the decline in value of a laptop, desk or chair separately. Items costing $300 or less can be claimed in full straight away.
Can I claim driving from home to work?
Usually no. Normal trips between home and your regular workplace are private, even if you work from home some days. Exceptions include carrying bulky tools or travelling between two workplaces.
Official sources used for this calculator include: ATO – Tax rates for Australian residents, ATO – Deductions you can claim, ATO – GST. See how we calculate.
Reviewed by the ClearCalc team. Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.