Can a W-2 employee deduct a home office?

For most employees, unfortunately not.

Since 2018, W-2 employees can't deduct work costs their employer doesn't pay for, and that includes a home office. A federal law passed in 2025 made this rule permanent.

There are a few exceptions, such as certain military reservists and performing artists. Starting in 2026, eligible K–12 teachers can also deduct some work costs they pay for themselves.

Other options worth considering

• Ask your employer to reimburse you. Many companies will pay for things like internet, a desk, or a monitor for remote work. When it's paid through a proper company reimbursement plan, the money is generally not taxed.
• If you also have a side business, you may be able to deduct a home office for that business, as long as the space is used regularly and only for that work.
• Make sure you're using the tax breaks you do have, such as contributing to your workplace retirement plan or a health savings account (HSA).
• Look at credits that can matter more than a home office deduction, such as those for children, child care, or education.