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Deductions · 8 min

Every deduction Canadian small businesses miss

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DeductlyCA
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DEDUCTIONAll of Canada

Home Office Expense Deduction

Last verified: June 2026

If you use part of your home exclusively for business, you can deduct a proportional share of rent, mortgage interest, property taxes, utilities, and maintenance costs.

See if I qualify
Estimated value
Typically $3,000–$12,000 per year
Approval likelihood
High
Ready to apply score
75/100
Documents needed
4

Eligibility

  • Business types:incorporated, self-employed, partnership
  • Industries:All industries
  • Provinces:All of Canada

What you'll need

  • Floor plan or measurement of workspace
  • Rent receipts or mortgage statements
  • Utility bills
  • T2200 form (if employed) or T2125 (if self-employed)

How to apply

  1. 1Calculate the percentage of home used for business
  2. 2Gather all home expense receipts for the year
  3. 3Claim on T2125 (self-employed) or T777 (employed)
  4. 4Keep records for 7 years
Deadline:Annual: claim on your tax return

Is your business a fit for Home Office Expense Deduction?

Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.

Check my eligibility

Related programs

DEDUCTION

Small Business Deduction (SBD)

Up to $30,000 per year in tax savings

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Motor Vehicle Expense Deduction

Typically $4,000–$15,000 per year

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Accelerated Investment Incentive (AII)

30–100% of asset cost in year 1

A monthly digest

New programs, in your inbox.

We are in beta. Drop your email and we will write when the first digest is ready. Monthly cadence, easy unsubscribe.

Deductly CA

Every Canadian grant, tax credit, and deduction your business qualifies for. In one ranked list.

Start the assessment
Product
  • Eligibility quiz
  • All programs
  • Watch (live changes)
  • The funding journey
  • When to apply
  • Stackability map
  • Document checklist
  • Calculators
  • Tracker
  • Learn
  • Pricing
Resources
  • For accountants
  • Public API
  • RSS feed
  • What's new
  • Roadmap
  • Press
  • vs ChatGPT
  • vs Benefits Finder
By province
  • Ontario
  • British Columbia
  • Alberta
  • Quebec
  • Manitoba
  • Saskatchewan
By industry
  • Technology & Software
  • Manufacturing
  • Retail & E-commerce
  • Food & Beverage
  • Professional Services
  • Creative & Media
For
Women entrepreneursNewcomersIndigenous businessYouth foundersBlack entrepreneursFirst-hire employers
Recent guides
Deductions · 8 min

Every deduction Canadian small businesses miss

Grants · 10 min

8 grants every Canadian founder should know about

Deductions · 7 min

The Small Business Deduction, fully explained

© 2026 DeductlyPrivacyTermsAboutFrançaisContact
All systems operational

Deductly is a discovery tool, not a tax filer. Information is provided for educational purposes. Always confirm program details and eligibility with a qualified Canadian accountant before applying or claiming any benefit.