Many employees still believe they can claim $2 for every day worked from home. That temporary flat-rate method applied only to the 2020–2022 tax years.
For 2023 and later years, eligible employees must use the detailed method, calculate actual expenses and retain supporting documents. Home office expenses for employees
When can an employee qualify?
Generally, you must:
✅ Be required to work from home under a written or verbal arrangement—including a formal voluntary telework arrangement; and
✅ Work from home more than 50% of the time for at least four consecutive weeks; or
✅ Use the workspace exclusively to earn employment income and regularly meet clients, customers or other people there.
Your employer must complete and sign Form T2200, and you calculate the deduction on Form T777. Expenses reimbursed by the employer cannot also be deducted. Home office expenses …
What can employees claim?
Salaried and commission employees may generally claim the employment-use portion of:
- Electricity, heat and water
- Home internet access fees
- Maintenance and minor repairs
- Rent, if they rent their home
Commission employees may also qualify to claim an allocated portion of home insurance and property taxes.
Employees cannot claim mortgage interest, mortgage principal, furniture, renovations or other capital expenses. canada.ca
How is the workspace percentage calculated?
If a dedicated office occupies 150 square feet of a 1,500-square-foot home, the starting allocation is 10%.
If the space is also used personally—such as a dining-room table—the calculation must also reflect the time it is used for employment. CRA’s example divides weekly work hours by the 168 total hours in a week. Home office expenses …
Self-employed taxpayers follow different rules
A sole proprietor may qualify if the workspace is:
- The principal place of business; or
- Used only to earn business income and regularly and continuously to meet clients, customers or patients.
Eligible costs may include allocated utilities, insurance, property taxes, mortgage interest, rent and maintenance.
However, business-use-of-home expenses cannot create or increase a business loss. Unused eligible amounts may be carried forward. Claiming CCA on part of the home can produce recapture or capital-gain consequences when the property is sold, so professional advice is recommended before claiming it. canada.ca
Practical takeaway: Obtain Form T2200 early, retain every receipt and document how the workspace percentage was calculated.
CRA—Employee home-office expenses
CRA—Business-use-of-home expenses
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