Home Office and Taxes: Which Costs Are Deductible?

Since the Corona pandemic, working from home has increased significantly. Many employees therefore ask: Which costs can be deducted in the tax return?

The rules differ by canton, but certain principles apply nationwide. In this article, you will learn when you can deduct a home office, which other costs are recognized, and what limits exist.

Home Office Deduction: When Is It Possible?

Requirements

A home office can only be deducted if all of the following criteria are cumulatively met:

1. No suitable workplace at employer available
   • The employer does not provide a workplace or
   • Use is not possible or reasonable
   • Important: Shared desks/smart working count as "workplace available" if at least 80% availability exists (Federal Court ruling 2C_1033/2017)
2. Substantial part of work in home office
   • In most cantons: at least 40% of working time from home
   • This corresponds to at least 2 full working days per week for full-time employment
   • Occasional home office is not sufficient
3. Separate home office available
   • A separate room used mainly for professional purposes
   • The room must be actually used as a workplace
   • The number of rooms in the apartment/house must exceed the family's living needs
4. Mainly professional use
   • The home office is used professionally for at least 2 full working days (8 h) or 4 half working days (4 h) per week

Not Deductible

• A "work corner" in the living room or shared use of a bedroom does not qualify as a separate home office and is not tax-recognized
• Even a sofa bed in the home office can be problematic and lead to non-recognition

Calculation of Home Office Deduction

For Rental Apartments/Houses

Formula:

Annual gross rent (excluding utilities and garage)
÷
(Number of rooms + 2)
= Deductible costs for home office


The "+2" accounts for kitchen, bathroom, and other ancillary rooms.

Additionally: In many cantons (e.g., Bern) a flat CHF 300 per year for heating, light, and cleaning.

For Owned Property

Calculation is based on imputed rental value according to cantonal formulas (0.8 room units × rental value per unit × rental value factor).

Private Share

If the home office is not used exclusively for professional purposes, an appropriate private share must be deducted.

Important Trade-off: What You Lose

CRITICAL: If you claim actual costs for a home office, you lose:

• ❌ Occupational expense flat rate (3% of net salary, min. CHF 2,000, max. CHF 4,000)
• ❌ Commuting costs for home office days
• ❌ Meal allowances for home office days

This means: The home office deduction is only worthwhile if the actual costs (home office + other occupational expenses) are higher than the flat rate plus the lost commuting and meal costs.

Occupational Expense Flat Rate as Alternative

Federal Level

Instead of actual costs, you can claim the flat rate for other occupational expenses:

• 3% of net salary according to salary statement
• Minimum: CHF 2,000 per year
• Maximum: CHF 4,000 per year

This flat rate covers all other occupational expenses, including:

• Professional tools and IT (computer, software)
• Professional literature
• Work clothing
• Minor home office costs

Cantonal

Cantons may have different flat rates. It is important to check with the cantonal tax administration.

Important: Flat rate and actual costs cannot be combined – you must choose one option.

Technical Equipment and Work Materials

Deductible Costs

If you claim actual costs instead of the flat rate:

• Computer, monitor, printer
• Office furniture (desk, office chair)
• Software and professional apps
• Telephone and internet costs (proportional, if used professionally)
• Professional literature
• Professional tools

Important: For items that can also be used privately (e.g., computer, monitors), an appropriate private share must be deducted.

Employer Participation

If the employer provides work materials or reimburses costs, these may not be deducted again for tax purposes.

If the employer pays a home office allowance and you have no workplace at the employer, this generally counts as tax-free expense reimbursement. However, if the employer has a workplace for you, the allowance counts as taxable salary.

Differences Between Cantons

Zurich

• Strict criteria for home office deduction
• Occupational expense flat rate often more advantageous
• Employer confirmation letter required
• Calculation same as for underutilization deduction

Bern

• 40% of working time in home office required
• Detailed deductions possible if clearly proven
• CHF 300 flat rate for heating, light, and cleaning
• Employer confirmation necessary

Lucerne

• At least 1/3 of working time (approx. 33%) in home office
• During Covid-19: Leniency rule allowing full commuting cost deduction
• From tax period 2024: Return to normal regulations

Geneva

• Partially restrictive
• Precise evidence required

Practical Examples

Example 1: Employee with Office at Company

An employee occasionally (1 day per week) works from home but has an office at the employer. She cannot claim a home office deduction because:

• She has a workplace at the employer
• She works less than 40% from home

However, she can use the occupational expense flat rate (3% of net salary, min. CHF 2,000, max. CHF 4,000).

Example 2: Employee with 50% Home Office

An IT specialist works 2.5 days per week (50%) from home because the employer does not provide a fixed workplace (shared desk with only 60% availability). He has a separate home office in his 4.5-room rental apartment (rent CHF 30,000/year).

Home office deduction:

• CHF 30,000 ÷ (4.5 + 2) = CHF 4,615
• Plus CHF 300 heating/light = CHF 4,915

What he loses:

• Occupational expense flat rate: approx. CHF 2,500 (with CHF 80,000 salary)
• Commuting costs for 2.5 days/week: approx. CHF 1,200/year
• Meal costs: approx. CHF 900/year

Comparison:

• With home office: CHF 4,915 deduction
• With flat rate: CHF 2,500 + CHF 1,200 + CHF 900 = CHF 4,600 deduction

→ The home office deduction brings CHF 315 more deduction.

Example 3: Self-Employed Graphic Designer

A self-employed graphic designer works exclusively from home. She can deduct rent, electricity, and equipment proportionally, as for self-employed persons no flat rates apply and all actual business costs are deductible.

Example 4: Shared Desk Situation

An employee has access to a shared desk at the employer. There are 85 workplaces available for 100 employees (85% availability). According to the Federal Court ruling, this counts as "employer provides workplace". The home office deduction is not possible.

Common Mistakes and Tips

Common Mistakes

• No separate home office, but deduction claimed anyway
• 40% threshold not reached (e.g., only 1 day/week home office)
• Trade-off with commuting/meal costs not considered
• Double deduction of work materials (both employer reimbursement and in tax return)
• Claiming flat rate and actual costs simultaneously
• Shared desk/smart working incorrectly interpreted as "no workplace"
• Private share not deducted for mixed use

Tips

• Perform comparison calculation: Home office vs. flat rate + commuting + meals
• Clearly define and document home office: Floor plan, rental contract, photos
• Obtain employer confirmation: That no workplace is available
• Keep receipts for purchases and invoices
• Observe 40% rule: At least 2 full days/week for full-time
• Check cantonal differences: Each canton has its own regulations
• Contact cantonal tax office if uncertain
• Consider private share for mixed use

Special Features for Self-Employed

For self-employed persons, no flat rates apply. They can:

• Deduct all actual business costs
• Claim home office without 40% rule (if professionally necessary)
• Must demonstrate proper bookkeeping
• Private share must be cleanly separated

Conclusion

Home office offers tax deduction opportunities, especially for a separate home office and professionally used work materials. However, strict requirements apply:

• At least 40% of working time in home office (approx. 2 days/week)
• Separate home office required (no work corner)
• No workplace at employer (shared desks from 80% availability count as available)
• Consider trade-off: Loss of flat rate, commuting costs, and meal costs

Most important decision: Flat rate (3% of salary, min. CHF 2,000, max. CHF 4,000) or actual costs? A comparison calculation is strongly recommended.

Those who meet the conditions, properly document their costs, and perform the comparison calculation can benefit from additional deductions and reduce their tax burden. In many cases, however, the flat rate is more advantageous.