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Work From Home Deduction Calculator 2025–26

The fixed-rate method lets you claim 70c for every hour you worked from home, covering energy, internet, phone and stationery, if you keep a record of your actual hours. 0 hours give a deduction of $0, which saves $0.00 of tax on a $80,000 salary (2025–26).

Rates checked on Oct 29, 2026, ATO

1Your situationIncome year, residency, family, private health cover, study loan
Tax year
2Salary and wagesIncome statement: gross pay, allowances, tax withheld
3Work and other deductionsCar, travel, clothing, self-education, working from home, gifts, tax agent
4Investments and propertyInterest, dividends and franking credits, rent, capital gains
5Other income and income testsGovernment pensions, other income, fringe benefits, salary sacrifice

Your result

Estimated refund$912.00
Taxable income
$80,000.00
Total tax
$16,388.00
Average tax rate
20.49%
Tax on your next 1,000
32%
Income
1Salary and wages$80,000.00
Total income$80,000.00
Taxable income$80,000.00
Tax
Resident rate 16% on $26,800$4,288.00
Resident rate 30% on $35,000$10,500.00
Tax on taxable income$14,788.00
M1Medicare levy$1,600.00
Tax and repayments$16,388.00
PAYG tax withheld−$17,300.00
Your refund$912.00

Estimate using ATO rates for the income year you picked. Your notice of assessment can differ, for example because of offsets, losses or income not covered here.

Markdown version for AI agents

Worked example (2025–26)

Australian resident, $80,000 of salary with $17,300 of tax withheld, no private hospital cover. The calculator above opens with these figures; change them to see your own estimate, laid out like a notice of assessment.

ItemAssessmentAmount
1Salary and wages$80,000.00
Total income$80,000.00
Taxable income$80,000.00
Resident rate 16% on $26,800$4,288.00
Resident rate 30% on $35,000$10,500.00
Tax on taxable income$14,788.00
M1Medicare levy$1,600.00
Tax and repayments$16,388.00
PAYG tax withheld−$17,300.00
Your refund$912.00

Deduction and tax saved by hours worked from home (2025–26)

HoursDeductionSaving on $60,000Saving on $100,000Saving on $150,000
200$140$46.90$44.80$54.60
500$350$117.25$112.00$136.50
800$560$187.60$179.20$218.40
1,200$840$281.40$268.80$327.60
1,600$1,120$375.20$358.40$436.80

Equipment such as a desk or laptop is claimed separately (items costing $300 or less at once, more expensive items over their effective life).

How your tax return is worked out

  1. Add up your income. Salary, wages and allowances from your income statement, government pensions, interest, dividends plus franking credits, net rent (a loss reduces your income) and your net capital gain.
  2. Take off deductions. Work-related car (88c a km up to 5,000 km), travel, clothing, self-education and other work expenses, working from home, gifts, tax agent fees and personal super contributions. Cents are dropped from taxable income.
  3. Work out tax on taxable income at resident rates (tax-free to $18,200), foreign resident rates (no tax-free threshold) or working holiday maker rates.
  4. Take off non-refundable offsets: the low income tax offset (up to $700) and the seniors and pensioners tax offset. They can reduce your income tax to nil but not below.
  5. Add the Medicare levy (2%, reduced on low incomes and for families), the Medicare levy surcharge if you had no private hospital cover and earn over the threshold, and any compulsory study loan repayment.
  6. Take off what you have already paid: PAYG tax withheld and your franking credits. A negative result is your refund; excess franking credits are refunded too.

Rates and thresholds

Item2025–262026–27
Resident rates (taxable income tops)0% to $18,200 / 16% to $45,000 / 30% to $135,000 / 37% to $190,000 / 45% above0% to $18,200 / 15% to $45,000 / 30% to $135,000 / 37% to $190,000 / 45% above
Low income tax offset$700 up to $37,500, nil from $66,667$700 up to $37,500, nil from $66,667
Medicare levy2%; none to $28,011 single, $47,238 family2%; none to $28,011 single, $47,238 family (provisional)
Medicare levy surcharge starts (single / family)$101,001 / $202,001$105,001 / $210,001
Seniors and pensioners tax offset (single)$2,230, reduced from $34,919$2,230, reduced from $36,034
Study loan repayments start$67,001$69,529
Capital gains discount (assets held 12 months+)50%50%
Car cents per km (max 5,000 km)88c91c
Work-from-home fixed rate70c an hour70c an hour (assumed)
Standard deduction for work expenses—$1,000
Lodge by (self-lodgers)31 Oct 202631 Oct 2027

Official source: Tax rates for Australian residents (ATO), Low income tax offset (ATO), Medicare levy reduction (ATO), Medicare levy surcharge thresholds (ATO), Study and training support loans thresholds (ATO), Seniors and pensioners tax offset (ATO), Working from home fixed rate (ATO), Standard deduction for work expenses (ATO), Individual tax return instructions 2026 (ATO). Rates checked on Oct 29, 2026.

Questions people ask

What records do I need?
A record of the actual hours you worked from home for the whole year (a timesheet, roster or diary) and one bill for each type of expense the fixed rate covers.
Can I use the actual cost method instead?
Yes. You can claim the work share of your actual running costs if you keep detailed records. You cannot use both methods for the same expense.
Does the fixed rate cover my laptop or desk?
No. Claim equipment separately: $300 or less outright, otherwise as depreciation over its effective life.
Is this the same as the ATO’s calculation?
It follows the same steps as your notice of assessment for the items listed. It does not cover business income, partnerships and trusts, foreign income, employment termination payments, lump sums in arrears, tax losses carried forward, the private health insurance rebate, zone and other offsets, or part-year residency.
Which income year should I choose?
2025–26 is 1 July 2025 to 30 June 2026; the return is due by 31 October 2026 if you lodge yourself. 2026–27 runs to 30 June 2027 and introduces the $1,000 standard deduction for work expenses.

Reviewed by Soufyane S.. Last updated Oct 29, 2026. How we check numbers

Estimates for information only, not tax, legal or financial advice. Check with an adviser or the official tax authority.