Not tax advice. This is a general guide based on SARS's published guidance, mainly Interpretation Note 28 (Issue 3) and SARS's home office FAQs. Your circumstances may differ, so consult a registered tax practitioner before you claim.
SARS · Home Office Expenses · Interpretation Note 28 · Eligibility Check + Calculator · Oct 2026
Quick answer: You can claim home office expenses from SARS only if part of your home is specifically equipped as an office, used regularly and exclusively for work, and you perform more than 50% of your duties there over the tax year, with your employer's permission. Salaried employees can claim only a floor-area share of rent, rates and taxes, electricity, cleaning and repairs, plus wear-and-tear on office equipment. Bond interest, internet, data, phone costs and stationery are not deductible for salaried employees.
What Is the Home Office Deduction?
Since remote and hybrid work became normal, many South Africans assume that working from home automatically earns them a tax deduction. It doesn't. The Income Tax Act generally prohibits deductions for private or domestic expenses, and your home is about as private as it gets. The home office deduction is a narrow exception to that rule, with strict requirements.
If you meet them, you can deduct a portion of your home's running costs from your taxable income. You claim it on your ITR12 tax return under source code 4028, and SARS frequently selects these claims for verification. The rules are set out in sections 11(a), 11(d), 23(b) and 23(m) of the Income Tax Act and explained in SARS's Interpretation Note 28.
Who Qualifies: The Requirements
| Requirement | What it means in practice |
|---|---|
| Occupied for purposes of trade | The space is used for your work, which includes employment. |
| Specifically equipped | It is set up as an office, for example with a desk, chair and computer, not just a laptop on the kitchen table. |
| Regularly and exclusively used for work | It is used for nothing else, at any time of day. A spare room that doubles as a guest room fails this test. |
| Duties performed mainly at home (salaried employees) | More than 50% of your duties for the whole tax year are performed in the home office. |
| Employer permission (salaried employees) | Your employer must allow you to work from home. SARS asks for a letter confirming this on audit. |
Use the checker to test your situation against each requirement.
Do you qualify? Quick eligibility check
Answer each question. This is a guide based on SARS's published requirements, not a ruling.
Salaried Employees vs Commission Earners
The rules differ depending on how you are paid. You count as a commission earner if more than 50% of your pay comes from commission based on sales or turnover.
| Salaried employee | Commission earner | |
|---|---|---|
| The "mainly" test | More than 50% of duties performed in the home office | More than 50% of duties performed outside the employer's premises |
| Employer letter required on audit | Yes | No |
| Limited by section 23(m) | Yes: only specific expenses can be claimed | No: a wider range of work expenses can be claimed |
| Phone, internet and stationery | Not deductible | Can be deductible, to the extent used for work |
A salaried employee who spends most of their time on the road visiting clients does not qualify. They perform their duties mainly at their clients' premises, not in a home office.
What Salaried Employees Can and Can't Claim
| Can claim (apportioned by floor area) | Can't claim |
|---|---|
| Rent | Bond interest (from the 2023 tax year onwards) |
| Rates and taxes, and municipal charges such as sewerage and refuse | Internet and Wi-Fi subscriptions, and data |
| Electricity, including prepaid electricity | Cell phone and airtime |
| Cleaning, such as a domestic worker | Stationery |
| Repairs to the premises | Improvements and renovations |
| Homeowner's insurance and security costs (non-capital) | Levies for common property in a complex |
| Wear-and-tear on equipment you own: desk, chair, computer, Wi-Fi router (claimed in full) | Beverages, and electricity from your own solar panels |
How to Calculate Your Deduction
SARS uses floor area to work out what share of your home's costs relate to the office:
Home office percentage = floor area of office ÷ floor area of home
You then apply that percentage to the qualifying home expenses, and add wear-and-tear on office equipment in full. Here is SARS's own worked example, for a 5m × 2m office (10m²) in a 100m² home:
| Expense | Annual amount |
|---|---|
| Repairs to the premises | R10 200 |
| Rates and taxes | R4 515 |
| Electricity | R6 400 |
| Domestic worker (cleaning) | R5 880 |
| Wear-and-tear on home office equipment | R2 520 |
| Total | R29 515 |
Calculation: ((R29 515 − R2 520) × 10%) + R2 520 = R2 699 + R2 520 = R5 219 deduction.
Try it with your own figures. The calculator is pre-filled with SARS's example:
Home office deduction calculator
Enter your annual figures. The calculator applies SARS's floor-area method and the expense rules for your type of earner.
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Documents to Keep
You don't submit these with your return, but SARS will ask for them if your claim is selected for verification. Without them, the claim will be disallowed:
- A letter from your employer on its letterhead, with its PAYE registration details, confirming the period you were allowed to work from home and, where possible, the days you went into the office.
- A floor plan showing the office and the total floor area of your home. It doesn't need to be an official plan, but the measurements must be accurate.
- Photographs of the office showing that it is dedicated and specifically equipped.
- A schedule showing that you worked mainly from home: more than 50% of your work for the year.
- Invoices and proof of payment for every expense claimed. Prepaid electricity vouchers are acceptable.
- A schedule of amounts claimed and your apportionment calculation.
If you pay a domestic worker in cash, have them sign an acknowledgement of each payment. SARS may also ask for proof that you pay UIF for them.
Common Misconceptions
"I work from home, so I can claim."
Working from home is not enough. Even if you worked mainly from home, you only qualify if the space is specifically equipped and used exclusively for work. SARS has said directly that someone working from existing space in the house, with no special room and no office furniture, is not eligible.
"My dining table or a corner of my bedroom counts."
It almost certainly doesn't. SARS says it is very difficult to prove that part of a bedroom, or a small area of a living space, is used exclusively for work. A shared desk fails too. Two spouses can share an office room only if it is clearly divided and each space meets the requirements on its own.
"It only has to be exclusive during working hours."
No. The law requires exclusive use for work, and SARS confirms that this doesn't change with the time of day. If the office becomes a TV room in the evening, it fails.
"I worked from home for a few months, so I qualify for those months."
The "more than 50%" test applies to the whole tax year. SARS confirms that working from home for 5 months of a 12-month year does not meet it.
"I can claim my bond interest."
Not any more, if you are a salaried employee. SARS used to allow it, but from the 2023 year of assessment (starting 1 March 2022), bond interest is excluded because section 23(m) does not permit it. Many older guides still list it, so be careful what you read. Rent, however, is still deductible for tenants.
"I can claim my internet, data, phone and stationery."
Salaried employees can't. Section 23(m) blocks these, even if you use them only for work. Ask your employer to reimburse them, or to provide data directly: data your employer provides mainly for work can be a tax-free fringe benefit. You can, however, claim wear-and-tear on a Wi-Fi router or other equipment you own.
"I can claim what I spent converting my garage into an office."
Improvements are not deductible, only repairs. Converting a garage, adding a window or installing a ceiling are improvements. You can, however, claim wear-and-tear on the desk, chair and shelving. Costs incurred before you started using the space for work also don't qualify.
"My R5 000 deduction means R5 000 back from SARS."
A deduction reduces your taxable income, not your tax bill rand for rand. At a 31% marginal tax rate, a R5 219 deduction saves you about R1 618 in tax.
"Claiming has no downside."
If you own your home, there is a long-term cost. When you sell, the office portion is "tainted" for capital gains tax, as explained below. Weigh a modest annual deduction against a potentially larger tax bill on the sale.
The Capital Gains Tax Catch
When you sell your primary residence, the first R2 million of capital gain is excluded from tax. If you have claimed home office expenses, the part of the home used as an office loses that exclusion. The gain is split between the "tainted" office portion and the rest of the home, based on floor area and the length of time the space was used as an office. The tainted portion is taxed in full.
This also applies if the house belongs to your spouse: your home office claim affects their primary residence exclusion when they sell.
How to Claim on eFiling
- Confirm that you qualify using the requirements above, before you claim.
- Gather your documents: employer letter, floor plan, photos, invoices and your calculation.
- Calculate your deduction using the floor-area method.
- Declare it on your ITR12 under source code 4028 for home office expenses.
- Keep everything for five years, and respond quickly if SARS requests supporting documents.
If you qualified in a past year but didn't claim, you may be able to request a correction to that return or lodge an objection within the prescribed time limits.
Final Thoughts
The home office deduction is real, but it is much narrower than most people think. If you have a dedicated, properly equipped office that you use for nothing else, and you genuinely work from it most of the year, it is worth claiming, with the paperwork to back it up. If you work from the kitchen table, or your claim depends on bond interest or internet costs, it is better to know now than to find out in a SARS verification.
Sources: SARS Interpretation Note 28 (Issue 3), 4 March 2022; SARS Home Office Expense FAQs (updated 17 November 2021); SARS Home Office Expenses guide, Tax Season 2025.
Cover photo: Max Andrey on Unsplash
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