Can I claim home office expenses?
Yes — if you work from home, you can claim a portion of your household running costs as a business expense. The amount you can claim is based on the proportion of your home used for work.
What expenses can you claim a portion of?
You can claim a share of:
- Power and electricity
- Broadband and internet
- Phone (the business portion)
- Rates and insurance
- Mortgage interest (not the principal repayment)
- Rent (if you rent your home)
You cannot claim mortgage principal repayments or the full cost of home improvements — only the interest portion of your mortgage and costs that relate to the upkeep of the home.
How to calculate the claimable percentage
The portion you can claim is based on the floor area used for business relative to your total home area.
Square metre method:
If your home is 120 m² and your dedicated office space is 12 m², your business-use percentage is 10%. Apply 10% to your total household bills to calculate your deduction.
Square metre rate option (simpler)
IRD also offers a square metre rate option, which uses a fixed rate per square metre of dedicated workspace. This rate is set annually and is designed to cover utility costs only (not rates, insurance, or mortgage interest — those are claimed separately).
For the 2024–25 income year, the square metre rate is $55.60 per square metre of dedicated workspace.
Example:
Your home office is 8 m². Deduction using square metre rate: 8 × $55.60 = $444.80
You can then also separately claim a portion of rates, insurance, and mortgage interest based on the floor area percentage.
What counts as a "dedicated workspace"?
To use the square metre rate, the area must be used mainly for business — it cannot be a shared living space like a kitchen table. A spare room used as an office qualifies; a corner of the lounge generally does not.
Keeping records
You must be able to justify your claims. Keep records of:
- Your home's total floor area and the office area (a floor plan or measurement)
- Copies of all relevant bills (power, internet, rates, etc.)
- Your lease or mortgage statements if claiming rent/interest
💡 Lodg helps you calculate your home office claim and ensures you're claiming the correct proportion.
Source: ird.govt.nz — Home office expenses | ird.govt.nz — Square metre rate for home office calculations 2025 | business.govt.nz — Claiming expenses