SARS Home Office Calculator (2027)

A home office deduction is claimed under section 11(a) of the Income Tax Act, read with the limitations in sections 23(b) and 23(m). Section 23(b) requires that the space be a specifically-equipped room used regularly and exclusively for your trade, and — if you earn mainly a salary — that you perform more than 50% of your duties there. The calculator splits your costs into two groups. Premises-linked running costs (rent, rates and taxes, electricity, cleaning, insurance, levies, repairs and security) are apportioned using the SARS formula A ÷ B, where A is your home office area in m² and B is your total residence area in m². Costs that do not relate to the premises — wear and tear on office equipment and low-value assets — are claimed in full, not apportioned. Note that since the 2023 year of assessment, employees and office-holders may no longer deduct mortgage bond interest under Interpretation Note 28.

The home office deduction is not based on income-tax brackets — it is an apportionment of actual expenses you incurred. The key SARS rules and thresholds are:

• Apportionment formula: Deduction on premises costs = (A ÷ B) × total premises costs, where A = home office area (m²) and B = total residence area (m²).
• Exclusive-use rule (s23(b)): the room must be regularly and exclusively used for your trade and specifically equipped for it.
• 50% duties rule: salary earners must perform more than 50% of their duties in the home office; commission earners must perform more than 50% of their duties away from an employer-provided office.
• Apportioned (premises) costs: rent, rates and taxes, electricity, cleaning, insurance, levies, repairs and maintenance, security.
• Claimed in full (not apportioned): wear and tear on office equipment; low-value office assets.
• Low-value asset write-off: an item of equipment costing less than R7,000 may be written off in full in the year of purchase (e.g. a desk, printer or scanner); items costing R7,000 or more are capitalised and depreciated over their useful life (apportioned for months used).
• Not deductible: mortgage bond interest (disallowed for employees from the 2023 year of assessment), water, refuse, sewerage, household contents and bond insurance, and personal items.

Example (2027 tax year, 1 March 2026 – 28 February 2027): Thandi works from home full-time. Her home office is 12 m² and her total home is 120 m², so her business-use percentage is 12 ÷ 120 = 10%. Over the year she paid: rent R96,000, electricity R14,000, cleaning R6,000 and security R4,000 = R120,000 in premises costs. Apportioned premises deduction = 10% × R120,000 = R12,000. She also bought a desk for R4,500 (under R7,000), which she writes off in full. Total home office deduction = R12,000 + R4,500 = R16,500, declared under "Other deductions" on her ITR12.