Remote and hybrid work is now a normal way of life for many South Africans and no longer just a pandemic-era exception. But SARS hasn’t relaxed its rules to match. If anything, home office claims attract more scrutiny than almost any other deduction on the ITR12. Before you claim anything for the 2026 year of assessment (1 March 2025 – 28 February 2026), here’s what actually qualifies, what doesn’t, and what’s changed recently. 

Who this applies to 
If you’re a sole proprietor, freelancer, or otherwise trade for your own account, this is straightforward: you deduct the relevant portion of your home office costs under “Local Business, Trade and Professional Income” on your ITR12, without needing to meet the stricter tests below. 

If you’re a salaried employee or hold an office (i.e. you receive an IRP5), it’s a different story. SARS applies a much stricter test under section 23(b) of the Income Tax Act, and this article focuses on that group. 

The requirements: all of them, not most of them 
To claim a home office deduction as an employee, you need to satisfy every one of the following: 

Employer permission- You need a letter from your employer confirming you’re required or permitted to work from home, and stating how often. 

More than 50% of your working time must be spent working from your home office over the tax year. 

A space used exclusively for work–  A full room, not a shared or multi-purpose area. A dining table doesn’t qualify. A study that doubles as a guest room or playroom in the evenings doesn’t qualify either. SARS has been known to ask for photographs and a floor plan showing the space is used only for work. 

The space must be specifically equipped for your trade- desk, chair, and the tools your job actually requires. 

If you don’t meet all four, don’t claim. SARS’s Interpretation Note 28 (Issue 3) sets these requirements out in detail, and non-compliant claims are a common trigger for verification and audit. 

What you can actually deduct 
Start by working out your remuneration structure: 

Commission earners (more than 50% of total remuneration from commission or performance-based pay).  
Can deduct rent, repairs, rates and taxes, cleaning, wear and tear, and other premises-related costs, plus other commission-related business expenses like stationery and computer expenses etc. 

Salaried employees (commission or variable pay under 50% of total remuneration)  
Can deduct rent, repairs, rates and taxes, cleaning, wear and tear, and other costs relating to the premises — but not general business running costs like internet or cellphone, which SARS treats as an employer-reimbursable expense rather than a personal deduction. 

What’s no longer deductible 

Bond interest is out– full stop, from the 2023 year of assessment onward. This isn’t a “current update” anymore, it’s been settled SARS policy for three tax years now, following the 2022 revision of Interpretation Note 28. If you’re still including it, stop. 

Also not deductible: water, refuse, and sewerage charges, household contents or bond insurance, and any personal-use items. 

Equipment and small assets 

Office equipment a desk, printer, or similar costing under R7,000 can be written off in full in the year you buy it, provided you keep the invoice. Anything R7,000 or more needs to be capitalised and depreciated (wear and tear) over its useful life, apportioned for the months it was actually used. 

How to calculate the deduction 

Premises-related costs (rent, rates, electricity, cleaning) are apportioned using floor area: 

Deduction = (Home office area ÷ Total home area) × Total premises costs 

Example: 

Thandi works from home full-time as a salaried employee. Her home office is 12m² and her home is 120m² in total, so her business-use percentage is 10%. 

Over the year she paid: 

– Rent: R96,000 
– Electricity: R14,000 
– Cleaning: R6,000 
– Security: R4,000 

Total premises costs: R120,000 

Apportioned deduction: 10% × R120,000 = **R12,000** 

She also bought a desk for R4,500 (under the R7,000 threshold), written off in full. 

Total home office deduction: R16,500, declared under Other Deductions on her ITR12. 

Note that equipment costs like the desk above don’t need to be apportioned by floor area, only premises-linked expenses do. 

The capital gains tax trade-off 

Claiming a home office deduction has a knock-on cost: it “taints” that portion of your primary residence for capital gains tax purposes. When you eventually sell, the primary residence exclusion, which has now increased from R2 million to R3 million for disposals from 1 March 2026, does not cover the business-use portion of the property. SARS apportions your eventual capital gain based on both the floor area used for trade and the period over which you claimed the deduction. 

This doesn’t mean you shouldn’t claim. For most people the annual income tax saving outweighs a future, partial CGT cost, but it’s worth factoring in, particularly if you’re planning to sell within the next few years. 

Two people sharing a home office 

Spouses or co-habitants can each claim, but only if the room is clearly divided into separate, individually equipped work areas, and you can each provide evidence (typically photos) of your own exclusive-use section. Sharing a single desk between you breaks the exclusivity requirement for both of you. 

Supporting documents SARS will ask for 

Assume you’ll need to provide, and keep on file for at least five years: 

1. Employer letter confirming permission to work from home, and how often 
2. A schedule of home office expenses and your apportionment calculation 
3. Proof of payment/invoices for every expense claimed, including at least one utility bill showing your address 
4. Purchase invoices and wear-and-tear calculations for any equipment claimed 
5. Photographs showing the space is used exclusively for work 
6. A floor plan (an accurate hand-drawn one is fine, it doesn’t need to be a municipal plan) 

A 2026 filing-season note 

SARS’s auto-assessments go out between 1 and 12 July 2026. Home office deductions are never included in an auto-assessment. If you qualify and want to claim, you need to reject the auto-assessment and file your own return with the supporting documentation above, SARS won’t pick this up for you. 

Get it right the first time 

Home office claims are one of the more heavily scrutinised deductions on the ITR12, and an incorrect claim can trigger a drawn-out verification process. If you’re unsure whether you qualify, or want help preparing a claim that will hold up to SARS review, PGCO’s tax team can help you work through the requirements and put together a compliant submission. 

*This article reflects SARS guidance current as of July 2026, including Interpretation Note 28 (Issue 3) and the primary residence exclusion increase effective 1 March 2026.

The PGCO Team