Yes, you can deduct a home office even if you rent your apartment rather than own a house. The IRS doesn't care whether you own or rent — it cares whether part of your home is used regularly and exclusively for business. Renters simply deduct a portion of their rent instead of mortgage interest and property taxes, along with a share of utilities, renters insurance, and certain other costs tied to the space.
The key requirement is the "exclusive and regular use" test. The space you're claiming — a spare bedroom, a converted closet, a dedicated corner of a room — has to be used only for business, not for sleeping, storing personal items, or watching TV at night. If your kitchen table doubles as your desk during the day and your dinner spot at night, that space doesn't qualify, because it isn't exclusively business. A clearly defined area, like a bedroom that holds only a desk, filing cabinet, and office supplies, generally does qualify.
You also need to show the space is your principal place of business, or at least a place where you regularly meet clients or do administrative work if you also work elsewhere (like a coworking space or client site). For most self-employed people working from home full-time, this isn't a stretch — it's simply true.
There are two ways to calculate the deduction. The simplified method lets you deduct a flat rate per square foot of qualifying office space, up to a set maximum, with no need to track actual expenses. The regular method requires you to figure out the percentage of your apartment's square footage used for the office, then apply that percentage to your rent, renters insurance, internet, electricity, and similar costs. The regular method usually produces a bigger deduction if your rent is high, but it requires more recordkeeping.
One important distinction: this deduction is generally only available to self-employed people, freelancers, and small business owners who file Schedule C. If you're a W-2 employee working remotely for a company, you currently can't deduct home office expenses on your federal return, even if your employer requires you to work from home. Some states allow it, so it's worth checking your state's rules separately.
Keep documentation. Take a photo of the office space, keep your lease and utility bills, and log the square footage of both the office and the full apartment. If you ever face an audit, this is the evidence that supports your claim. Also note that if you move mid-year, you'll need to prorate the deduction between apartments based on how long you used each qualifying space.
If your business use is minor, inconsistent, or the space does double duty as a guest room or living area, it's worth talking to a tax professional before claiming the deduction. The home office deduction is one of the more scrutinized areas of small business tax returns, so getting the exclusive-use test right matters more than the dollar amount involved.