April 15 will arrive faster than you realize, so if you haven’t filed your taxes yet, now’s the time to start combing through your records to see what expenses could end up saving you money on your return, especially if you own a home. One often-missed opportunity? Homeowners association dues.
HOA dues aren’t always tax-deductible, but under the right circumstances, they can be.
For example, if you use your home as a dedicated workspace or rent out your property, a portion, or all, of your HOA fees might qualify as a business expense. And if you’re dealing with special assessments, those, too, can affect your tax situation—particularly when it comes to capital gains down the line.
If you paid HOA fees in 2025, we’ll break down exactly when and how you can turn those expenses into a tax break. Whether you’re a full-time remote worker, part-time landlord, or somewhere in between, understanding these rules could make a meaningful difference in your return.
Are HOA fees tax-deductible?
HOA fees are used to maintain and improve the community and can include payments for maintenance of common areas, landscaping, insurance, amenities, reserve funds, and repairs.
So are these HOA fees deductible on taxes? It depends.
If you buy a property as your primary residence and are responsible for paying HOA fees on a monthly, quarterly, or yearly basis, those fees are not tax-deductible.
“However, if you use part or all of the home for business purposes such as a rental or a home office, you may be able to deduct some or all of the HOA fees,” says tax attorney John Georvasilis, of Seattle Legal Services in Seattle.
Can I write off HOA fees when working from home?
If you’re self-employed and working from a dedicated home office, a portion of your HOA fees might be tax-deductible under the home office deduction. But the space must be used regularly and exclusively for business purposes—a corner of your kitchen table doesn’t count.
“The most common way to prorate the HOA dues would be to add up your total HOA dues for the year and multiply that amount by the square footage of your home office over the total square footage of your home,” says Logan Allec, CPA and owner of Choice Tax Relief in Los Angeles.
For example, if your home office takes up 20% of your home, you may be able to deduct 20% of your annual HOA dues as a business expense.
Keep in mind that this deduction is available only to self-employed individuals filing a Schedule C (Form 1040), not W-2 employees working remotely. If you’re eligible, you’ll need to calculate the deduction using Form 8829 and retain clear records of both your business use and HOA payments. Taking the time to document it properly could help reduce your taxable income—and make that HOA fee work a little harder for you.
Can I write off HOA fees on a rental property?
If you own a rental property and lease it to a tenant, your HOA fees are tax-deductible as an operating expense.
“The HOA fees are an ordinary and necessary expense to generate your rental income,” says Allec.
This applies whether the property is rented out in its entirety or just as a portion. If you’re leasing out only a single room or unit within your home, you’ll need to prorate the deduction based on square footage.
“For instance, if you rent out a single bedroom, you can write off a portion of the HOA fees based on the square footage of that room compared to the rest of your home,” says Georvasilis.
To claim the deduction, report your rental income and expenses—including eligible HOA dues—on Schedule E (Form 1040). As always, detailed records and documentation will help you stay compliant with IRS requirements and ensure you get the maximum allowable deduction.
Can I write off HOA fees for a home I rent out part time?
According to the IRS, a house is considered a second home and not a rental property if you use it for personal purposes during the tax year for a number of days “that’s more than the greater of 14 days, or 10% of the total days you rent it to others at a fair rental price.”
So if you rent out the property for 200 days in a year, 10% of that is 20 days. If you use the property for more than 20 days for personal purposes, the IRS considers it a second home and not a rental.
In that case, “you don’t report any of the rental income and do not deduct any of the rental expenses, including HOA dues—because they’re not tax-deductible,” says Allec.
But if you didn’t use the home for personal purposes for a number of days that was more than the greater of 14 days, or 10% of the total days you rent it to others at a fair rental price, a portion of the HOA dues will be tax-deductible.
For instance, if you rented out the property 75% of the year, you can deduct 75% of your HOA fees on your tax return as a rental expense.
Are special assessments tax-deductible?
A special assessment is an additional fee that an HOA may impose to cover unforeseen expenses, like necessary renovations or updates to the property. Unlike regular HOA dues, special assessments are typically applied only in emergencies.
If the special assessment is used for repairs or maintenance, it is normally tax-deductible.
But if it is used for improvements, it is not tax-deductible.
Do HOA fees and special assessments affect capital gains taxes when I sell my house?
While monthly HOA fees are considered regular operating costs and do not affect your capital gains taxes, special assessments might—if they’re used to improve the property, according to Allec.
When you sell your home, you may owe capital gains tax on the profit from the sale. The IRS calculates this by subtracting your cost basis (what you originally paid for the home, plus certain qualifying expenses) from the sale price. The higher your cost basis, the lower your taxable gain.
This is where special assessments can come into play. If you’ve paid for improvements like a new roof for the building or major landscaping work through special assessments, those expenses may be added to your cost basis.
Keeping a record of special assessments that were used for improvements to your property “could increase your cost basis in your home, which could decrease your capital gains tax when you sell it,” says Allec.
How do I deduct HOA fees or special assessments?
To write off your HOA fees or special assessments on your taxes, it’s important to ensure that you comply with IRS regulations.
To deduct HOA fees on a home office, “use Form 8829 to calculate your home office deduction, including the portion of your deduction for HOA fees, and report your total home office deduction at the bottom of Schedule C,” advises Allec.
More details about the home office deduction can be found in IRS Publication 587.
To take a tax deduction on a rental property, use Part 1 of Schedule E to list your rental income and expenses.
If you rent out your second home part time, review IRS Publication 527 and then consult a tax adviser.
It’s important for homeowners to speak with a tax professional to gain a clear understanding of HOA fee deductions and their potential impact.
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