Work From Home Expenses
Home office deductions for employees after the flat rate ended: T2200, what counts, how to calculate.
The short version
- Employees can deduct part of their home costs only if the employer completes and signs form T2200 (or T2200S) confirming you had to work from home and pay those costs.
- The $2-a-day flat rate from the pandemic years ended after 2022. Since 2023, only the detailed method with receipts works.
- Your workspace must be where you mainly (more than 50% of the time) worked for at least four weeks in a row, or used only for work and regularly for meeting clients.
- Salaried employees can claim a share of rent, electricity, heat, water, internet and maintenance. Mortgage interest, property tax and home insurance are for commission employees only.
- Claim on line 22900 with form T777. Self-employed people use a different set of rules on form T2125.
Work From Home Tax Deductions Canada
For three years, everybody who worked at the kitchen table got $2 a day, no questions asked. That ended in 2023. The deduction still exists, but it now needs your employer's signature, your receipts and some arithmetic. For people who rent and work from home full time, it's still worth doing, and because it's a deduction it saves tax at your marginal tax rate.
Step 1: The T2200
Your employer has to complete and sign form T2200 (or the shorter T2200S for home office only), confirming that your employment contract required you to work from home and pay for these costs, and that you weren't reimbursed. No form, no deduction. If your employer offered an office and you chose to stay home, the employer may not be able to sign it. You don't send the form; keep it.
Step 2: Does Your Workspace Qualify?
One of these must be true:
- It's where you mainly worked: more than 50% of the time for at least four consecutive weeks in the year, or
- It's used only for work, and regularly and continuously for meeting clients or customers.
Step 3: Work Out the Work-Use Share
Divide the work area by the total finished area of the home. If the room is also used for personal things (the dining table on weekends), reduce it further by the share of time it's used for work. Example: a 120 sq ft spare room in a 1,200 sq ft apartment, used only for work = 10% of eligible costs.
What You Can Claim
| Expense | Salaried employee | Commission employee |
|---|---|---|
| Rent | Yes (work share) | Yes |
| Electricity, heat, water | Yes | Yes |
| Home internet (monthly plan) | Yes | Yes |
| Maintenance and minor repairs | Yes | Yes |
| Office supplies used up (paper, ink) | Yes | Yes |
| Home insurance, property tax | No | Yes |
| Mortgage interest, CCA on the home | No | No |
| Furniture, computers | No | No (some leasing costs for commission employees) |
Home office expenses can't create or increase a loss from employment; unused amounts carry forward. Run the result through the income tax calculator to see what it saves. Homeowners on salary usually find the claim small, since their biggest costs (mortgage interest and property tax) don't count.
Is a home office claim worth it for you?
Tell the assistant whether you rent or own, your home costs, the size of your workspace and your income. It estimates the deduction and the tax it saves.
Other Employment Expenses
The same T2200 can also cover other costs your job requires you to pay: vehicle expenses for travel away from the office, certain supplies, and for commission employees, advertising and entertainment. The full list of deductions is on Canadian tax deductions.
Self-Employed?
Different rules. The self-employed claim business use of home on form T2125, can include mortgage interest and property tax, and don't need a T2200. See self-employed taxes in Canada.
Keep the Paper
CRA reviews home office claims. Keep the signed T2200, a floor plan or measurements, and receipts for every cost claimed. See what receipts to keep. Return Check flags home office claims without the matching employer form, which is the most common reason they get denied.
Work From Home Questions
Can I still claim $2 a day for working from home?
No. The temporary flat rate method applied only to 2020 to 2022. Since 2023, employees must use the detailed method with a signed T2200 or T2200S and receipts.
What do I need to claim home office expenses as an employee?
A form T2200 or T2200S signed by your employer, a workspace that meets CRA's conditions, and receipts for the expenses. You claim on line 22900 using form T777.
Can I deduct mortgage interest for working from home?
No, not as an employee. Salaried employees cannot deduct mortgage interest or property tax; commission employees can deduct property tax and insurance but not mortgage interest.
How do I calculate the work-use percentage of my home?
Divide the area of the workspace by the total finished area of the home, and reduce it further if the space is also used for personal purposes.
Sources: CRA, Home office expenses for employees; forms T2200, T2200S and T777; Guide T4044 Employment Expenses. Checked October 2026. The salaried versus commission split is summarized; CRA's guide has the full rules.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.