Canadian Home Office Expense Calculator
Work from home? Calculate the home office expenses you can deduct on your Canadian tax return. The calculator handles all three CRA cases — salaried (T2200 + T777), commission (T2200 + T777), and self-employed (T2125) — and shows the same expenses side-by-side so you can see how the deduction differs.
Note: the temporary flat-rate method ($2/day) was retired by the CRA after the 2022 tax year. From 2023 onward only the detailed method below is valid.
Your Situation
Tax Year & Income
Approximate taxable income — gross minus RRSP and other deductions
Home Workspace
Use percentage: 10.0%
Annual Home Expenses
Salaried employees can only claim long-distance or dedicated work line costs — not the basic monthly fee.
Your Deduction
Deductible Amount
$2,768
Estimated Tax Savings
$821
at 29.6% marginal rate
Form to File
T777
Self-employed CCA on a principal residence is not included by design — claiming it forfeits your principal-residence capital-gains exemption on a future sale, which is rarely worth the small annual tax saving.
Side-by-Side Comparison
How would the same expenses look as another type?
Salaried Employee
$2,768
Commission Employee
$2,768
Self-Employed
$2,768
About Home Office Expenses in Canada
The CRA allows employees and self-employed individuals to deduct a portion of their home costs when they use part of their home exclusively (or primarily) for work. The deductible share is based on the ratio of your office area to total home area, adjusted for shared spaces.
Employees (T777): You need a completed T2200 Declaration of Conditions of Employment signed by your employer. You must have been required to work from home more than 50% of the time for at least four consecutive weeks in the year. Eligible expenses include rent, utilities, internet, maintenance, and phone. Commission employees can also claim property tax and home insurance.
Self-employed (T2125): No T2200 is required. You can claim all the above expenses plus mortgage interest. The deduction is capped at your net business income for the year — any excess carries forward indefinitely.
Frequently asked questions
Who can claim home office expenses in Canada?
Employees who are required to work from home more than 50% of the time for at least four consecutive weeks, and who have a signed T2200 from their employer, can claim using Form T777. Self-employed individuals claim through Form T2125 — there is no T2200 requirement.
What's the difference between salaried and commission employees?
Both file T777, but commission employees who sell goods or negotiate contracts may also deduct property tax and home insurance — items salaried employees cannot claim. Neither can deduct mortgage interest or capital cost allowance on the home itself.
Can self-employed Canadians claim mortgage interest?
Yes — self-employed taxpayers reporting on T2125 can deduct the business-use portion of mortgage interest (but not principal). Capital cost allowance on the home itself is technically allowed but is a trap: claiming it forfeits the principal-residence exemption, so the calculator deliberately omits it.
How do I calculate the work-use percentage?
Divide your office area by your total home area. If the space is shared (e.g., a dining table that's also your desk), multiply by the fraction of the 168-hour week you actually use it for work. The calculator does this automatically when you tick the "shared space" box.
What if my deduction is bigger than my business income?
For self-employed taxpayers, the deduction cannot create or increase a business loss. The excess carries forward indefinitely and can be used in future years against business income from the same activity. Employees do not have this carryforward — unused expenses are lost.
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Last updated April 2026. Reflects 2024, 2025, and 2026 tax year rates.