Can I claim home-office expenses as an employee or self-employed person?

Arsen Accounting Services · Sources checked October 27, 2026

Working from home does not automatically make household bills deductible. Employees and self-employed people use different eligibility rules, expense categories and calculations. Start by identifying which kind of income you earn before adding home costs to your return.

Employees need to meet the employment conditions

For an employee using the detailed method, CRA requires an eligible work arrangement, qualifying expenses and employer certification on Form T2200. The workspace test generally involves working there more than 50% of the time for at least four consecutive weeks, or using it exclusively to earn employment income and regularly for in-person work meetings. The other conditions must also be met. A formal telework agreement can satisfy the requirement to work from home. CRA — Employee home-office eligibility

A signed T2200 supports the claim; it does not make every cost eligible. The temporary flat-rate method applied to 2020–2022 and should not be carried forward into a current-year claim. CRA — Calculating employee home-office expenses

Which household costs may qualify for employees?

Eligible employees may claim the employment portion of certain costs such as rent, utilities and qualifying home-internet access fees. Neither salaried nor commission employees can claim mortgage interest or principal as home-office expenses. Commission employees may have additional eligible categories, subject to their conditions. Reimbursed expenses cannot also be claimed. Check the category before calculating a percentage. CRA — Home-office expenses employees can claim

Self-employed people use business-use-of-home rules

A self-employed workspace may qualify if it is the principal place of business, or if it is used exclusively to earn business income and regularly and continuously to meet clients, customers or patients. Eligible costs can differ from the employee rules. The deduction is limited by the relevant business income; unused qualifying amounts may carry forward subject to the conditions. CRA — Business-use-of-home expenses CRA — Business Use of Home Expenses folio

Claiming capital cost allowance on the home can have consequences beyond this year’s expense deduction. Raise the issue before treating the building as depreciable business property. CRA — Business Use of Home Expenses folio

Measure the space and record the use

For an employee’s shared room, the employment-use calculation considers both floor area and time used for work. A dedicated room and the kitchen table should not automatically receive the same calculation. Record the eligible periods, room measurements and weekly work hours. CRA — Calculating employee home-office expenses

If you have both employment and freelance income, or two people work from the same home, identify who paid each expense and how the space was used. Prepare one allocation worksheet that shows the total cost, the separate uses and any reimbursement. This makes it easier to spot a duplicated amount before filing.

Your home-office preparation checklist

• Employment agreement or telework arrangement and a completed T2200, where applicable.
• Floor-area measurements and a description of dedicated or shared space.
• Dates and work hours supporting the period claimed.
• Rent, utility and other relevant invoices, with reimbursements marked.
• A breakdown of employment, business and personal use.

Common questions

Can I claim the full room just because I work there every day?

Daily use alone does not establish the deductible percentage. Eligibility, personal use and the applicable calculation still need to be checked.

Can my spouse and I claim the same bill?

If both qualify, divide the eligible costs appropriately. The same expense cannot be claimed twice. CRA — Home-office expenses employees can claim

Match the claim to your work arrangement

Arsen Accounting can discuss employment-expense claims on a T1 or self-employed return preparation. Mention both activities if you have a job and a side business.

Discuss your tax preparation