Administered by Government of Canada · Last verified: July 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. For example, a 150 sq ft office in a 1,200 sq ft home is 12.5% of those costs, so on $1,500 a month of rent and utilities that is roughly $2,250 a year.
You claim this on your tax return, so the money comes back as a lower tax bill or a refund after you file. If you missed it in a past year, you can often still recover it by adjusting a prior return.
Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.
Check my eligibilityHome Office Expense Deduction is generally open to incorporated, self-employed, partnership businesses, in any province or territory. Confirm the full criteria on the official program page before applying.
The estimated value is Typically $3,000 to $12,000 per year. The actual amount depends on your eligible costs, the program's budget, and approval.
Claimed on a return, so a missed year can usually be recovered by amending. How far back depends on whether you file personally or as a corporation; confirm the eligible years with your accountant.
1. Calculate the percentage of home used for business 2. Gather all home expense receipts for the year 3. Claim on T2125 (self-employed) or T777 (employed) 4. Keep records for 7 years
Annual: claim on your tax return.