$Missed Deductions

Can I deduct my home security system?

Commonly Missedintermediate3 answers · 5 min readUpdated February 28, 2026

Quick Answer

Home security systems are generally NOT deductible for personal use, but may qualify if you use your home for business. Home office users can deduct the business percentage (typically 10-20%) of security system costs, potentially saving $120-240 annually on a $1,200 system.

Best Answer

RK

Robert Kim, Tax Return Analyst

Best for people who work from home and can claim a home office deduction

Top Answer

Can you deduct home security system costs?


For most homeowners, home security systems are personal expenses and not tax-deductible. However, if you use part of your home for business purposes, you may be able to deduct a portion of your security system costs as a business expense.


How the home office deduction works for security systems


If you qualify for the home office deduction, you can deduct the business percentage of your security system costs. This includes:


  • Monthly monitoring fees
  • Equipment costs (cameras, sensors, control panels)
  • Installation fees
  • Annual service contracts

  • Example calculation: If your home office takes up 15% of your home's square footage and you spend $1,200 annually on security (equipment + monitoring), you could deduct $180 (15% × $1,200) as a business expense.


    Example: Freelance consultant's security deduction


    Sarah runs a consulting business from her 200-square-foot home office in her 2,000-square-foot house:


  • Home office percentage: 10% (200 ÷ 2,000)
  • Annual security costs: $1,440 ($120/month monitoring + $240 annual equipment)
  • Business deduction: $144 (10% × $1,440)
  • Tax savings: ~$35-50 (depending on tax bracket)

  • Requirements to qualify


    To deduct security system costs, you must:


  • Use part of your home exclusively for business - The space must be used ONLY for work, not as a guest room or family area
  • Use it regularly - Occasional or incidental business use doesn't qualify
  • Meet the principal place of business test - This is your main place of business, or you regularly meet clients/customers there

  • What security expenses you can deduct



    How to claim the deduction


    You have two options:


    1. Simplified method: Deduct $5 per square foot of home office space (max 300 sq ft = $1,500 deduction). This covers ALL home office expenses including security, utilities, repairs.


    2. Actual expense method: Calculate the exact business percentage of each expense. Use this method if your actual expenses exceed the simplified method limit.


    Special situations


    Rental properties: If you rent out part of your home, security system costs are fully deductible as rental expenses on Schedule E.


    Business security beyond home office: If you install additional security specifically for business assets (like a separate alarm for your workshop), those costs may be fully deductible.


    What you should do


    If you work from home:

    1. Measure your home office space to calculate the business percentage

    2. Keep receipts for all security system expenses

    3. Document that your home office meets IRS requirements

    4. Compare simplified vs. actual expense methods to see which saves more


    Use our return scanner to check if you've been missing this deduction on past returns - you may be able to amend and claim refunds.


    Key takeaway: Home security systems aren't deductible for personal use, but home office users can deduct 10-20% of costs (typically $120-240 annually), saving $30-70 in taxes depending on their bracket.

    *Sources: [IRS Publication 587](https://www.irs.gov/pub/irs-pdf/p587.pdf), [IRS Form 8829 Instructions](https://www.irs.gov/pub/irs-pdf/i8829.pdf)*

    Key Takeaway: Home office users can deduct the business percentage of security costs, typically saving $30-70 annually on a $1,200 system.

    Tax treatment of security system costs by home use type

    Home Use TypeDeduction PercentageAnnual Savings (est.)Where to Report
    Personal residence only0%$0Not deductible
    Home office (10% of home)10%$30-50Form 8829
    Home office (20% of home)20%$60-100Form 8829
    Rental property100%$200-400Schedule E

    More Perspectives

    DF

    Diana Flores, Tax Credits & Amendments Specialist

    Best for homeowners who don't work from home or run a business

    Security systems as personal expenses


    For most homeowners, security system costs are personal expenses that cannot be deducted on your tax return. The IRS considers home security a personal safety measure, similar to door locks or smoke detectors.


    What this means for typical homeowners


    Even though you might spend $600-1,500 annually on security systems, these costs don't qualify for tax deductions if they're protecting your personal residence:


  • Monthly monitoring fees ($30-80/month)
  • Equipment purchases (cameras, sensors, keypads)
  • Installation and setup fees
  • Annual service contracts

  • Why security systems don't qualify


    The IRS generally doesn't allow deductions for expenses that provide personal benefits, even if they also protect your property. Security systems fall into this category because they primarily serve personal safety rather than business purposes.


    Exceptions to consider


    While most homeowners can't deduct security costs, you might qualify if:


  • You rent out part of your home (Airbnb, long-term tenant)
  • You operate a business from your home
  • You use your home to meet clients regularly

  • Alternative ways to save


    Instead of tax deductions, consider:

  • Insurance discounts: Many insurers offer 5-20% discounts for monitored security systems
  • Energy-efficient equipment: Some smart security devices qualify for energy tax credits
  • HSA eligible expenses: Medical alert systems may qualify if prescribed by a doctor

  • Key takeaway: Regular homeowners cannot deduct personal security system costs, but may qualify for insurance discounts worth $100-300 annually instead.

    Key Takeaway: Personal security systems aren't tax-deductible, but homeowners can often get insurance discounts worth $100-300 annually.

    RK

    Robert Kim, Tax Return Analyst

    Best for people who rent out part or all of their home

    Security systems for rental properties


    If you rent out part or all of your home, security system costs become legitimate business expenses that are fully deductible on Schedule E.


    What qualifies as rental security expenses


    Fully deductible for rental properties:

  • Monthly monitoring fees for the entire property
  • Security cameras in common areas
  • Door locks and keypad entry systems
  • Motion sensors and alarm equipment
  • Professional installation costs

  • Example: Airbnb host deduction


    Mike rents out his basement apartment through Airbnb:

  • Annual security costs: $960 ($80/month monitoring)
  • Rental income: $18,000
  • Tax bracket: 22%
  • Tax savings from deduction: ~$211 (22% × $960)

  • Partial rental scenarios


    If you rent out only part of your home, you can typically deduct 100% of security costs since the system protects the entire property and benefits your rental business.


    Documentation requirements


    Keep detailed records:

  • Monthly monitoring statements
  • Equipment purchase receipts
  • Installation invoices
  • Any upgrade or repair costs

  • Report these expenses on Schedule E, Line 12 (Other expenses) with a description like "Security system."


    Key takeaway: Rental property owners can deduct 100% of security system costs, potentially saving $200-400 annually in taxes compared to zero deductions for personal use.

    Key Takeaway: Rental property owners can deduct 100% of security costs, saving $200-400 annually versus zero deductions for personal use.

    Sources

    home securityhome office deductionbusiness expenseshomeowner deductions

    Reviewed by Robert Kim, Tax Return Analyst on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.