Home Office Expenses in NZ: The $57.30 Square Metre Rate
17 October 2026 · Guide · Not tax advice
Educational information only. Not tax, legal or financial advice. We are not Inland Revenue (IRD) or ACC and are not affiliated with them. Check ird.govt.nz, or ask a qualified tax agent. Last checked against official sources: October 17, 2026. Anything marked expected should be re-checked. Examples use made-up numbers. This page contains no affiliate links.
Short answer: The IRD says that if you're a business owner who uses part of your family home for work, you can claim it as a business expense, as long as there's a connection between the use of the home and the business income. If the business area is set aside and used mainly for business, you can use the square metre rate, which the IRD set at $57.30 per square metre for the 2026 income year (1 April 2025 to 31 March 2026; announced 15 June 2026). The rate doesn't include mortgage interest, rates or rent; you claim a share of those separately by floor-area percentage.
The calculation (IRD formula)
(total mortgage interest, rates and rent paid x business share of floor area) + (business square metres x the year's square metre rate). Made-up example: home 100 m2, office 10 m2 (10%), rent $10,000: 10% x $10,000 = $1,000; plus 10 x $57.30 = $573; total $1,573.
Rates by year (IRD table, excerpt)
2025-26: $57.30; 2024-25: $55.60; 2023-24: $53.10; 2022-23: $51.05; 2021-22: $47.85; 2020-21: $44.75 (IRD table, read in full 17 October 2026). Use the rate for the year you're claiming. The $57.30 rate was announced on 15 June 2026 for the year that ended 31 March 2026, so the rate for the year to 31 March 2027 is expected after that year ends; no date or amount is published.
Other IRD rules on the same page
- The square metre rate is based on the average cost of utilities per square metre; it excludes mortgage interest, rates and rent, which you claim by floor-area share.
- If you use the square metre rate option, you cannot claim any other expenses or depreciation related to the business use of your home.
- You can't claim depreciation on the home itself; you can on capital items such as a computer or office furniture (the IRD says this is not available with the square metre option).
- If you are GST-registered, expenses you claim exclude GST where this applies; if you're not registered, they include GST. Only the interest part of a mortgage (not principal) is claimable.
- Internet on a mixed plan: claim a business share that is "fair and reasonable".
If you have no separate area
Business.govt.nz (an IRD partner site) says you should consider the time you spend on the business and the area used, and keep a record of each item and invoices.
Companies
If your company reimburses you for using your home, it may claim an expense if it can show the link between the payment and its income and keeps accurate records.
Related
Sole trader guide · IR3 due date
FAQ
Can I claim a home phone line? The IRD page says 50% of the landline rental if it is also your private line; business toll calls 100%; a separate business line in full (adjusting for private calls).
Where do I claim? The IRD page read doesn't say which form line to use; ask your tax agent.
What we could not verify
- Read in full on 17 October 2026: the IRD home office page and the IRD news item of 15 June 2026. Business.govt.nz stays a search excerpt; Operational Statement OS 19/03 was not read.
- The square metre rate for the year to 31 March 2027 and its publication date.
- How the IRD treats a shared area (the option applies where the area is set aside and used mainly for business).
- How home-office claims are recorded on IR3 or IR10 forms.
Sources (official)
- IRD, Home office expenses — official page (read in full October 17, 2026; page shows no review date)
- IRD news, Square metre rate for home office calculations 2026 (15 June 2026) — official page (read in full October 17, 2026)
- Business.govt.nz, Claiming expenses — official page (search excerpt, October 17, 2026)