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The CRA allows home office expenses for employees who use the detailed method and hold a Form T2200 signed by their employer. The temporary flat rate method no longer applies from the 2023 return. A $1,200 claim saves about $356 of tax on an $80,000 Ontario salary, so it is worth a look but will not change your year.
Who meets the eligibility criteria for home office expenses?
Three things have to line up. Your employer required you to work from home, in writing or by a verbal agreement. You spent over half your working time at home for a stretch of at least four weeks, or you use the space only for your job and meet clients there in person. And your employer signs Form T2200.
Working from home purely by your own choice does not qualify. You also cannot claim anything your employer paid back to you. You keep the T2200 yourself. It stays out of your return, though the CRA may ask to see it.
The temporary flat rate method does not apply to the 2023 and later tax years.
Work space in the home expenses, Canada Revenue Agency, canada.ca
Which home office expenses can you claim, and which can't you?
| Type of employee | Claimable |
|---|---|
| All employees | Electricity, heat, water, the utilities part of condo fees, maintenance and minor repairs, rent for the work space share |
| All employees | A reasonable monthly home internet fee, used-up supplies such as paper and ink, the work share of a basic cell phone plan, long distance work calls |
| Commission employees only | Home insurance, property taxes, leasing of a phone or computer that relates to commission income |
| Not claimable | Mortgage interest and principal, furniture, purchased computers and printers, capital costs such as windows or a furnace, internet connection fees |
The CRA says the claim cannot create or increase a loss, so it is capped by your employment income after other employment expenses.
How do you work out home office expenses by work space share?
You claim the part of each bill that belongs to your office. Measure the room and divide by the finished area of the home. If the office is 10 square metres in a 100 square metre home, the share is 10%, so $3,000 of electricity and heat gives a $300 claim. For a shared room, the CRA method also multiplies by the hours of work use divided by 168 hours in a week.
The figures go on Form T777, the Statement of Employment Expenses. Bring receipts or statements that show what you actually paid. A bank line that says hydro is not as good as the bill. The CRA's calculation page has the rules.
What should you keep in your folder?
Treat it like a small file you could hand over on request. Keep the signed T2200, the bills for each utility with the amounts you claimed, a sketch or note of the room sizes, and your arithmetic. Say Maya in Edmonton claims 10% of $3,000 of utilities. That is $300 on the form, and if the CRA asks she can show the bills, the room sizes and the sum in a minute.
Keep everything for six years from the end of the tax year, which our guide to CRA record keeping explains.
How do you claim your home office expenses on a tax return?
The CRA describes the claim as a deduction on your personal income tax return, and it covers three kinds of home office expenses: the work space in the home, office supplies and certain phone expenses. For the 2023 and later tax years you use Form T777 even if home office costs are your only employment expense.
The steps run in order. First confirm that you meet the eligibility criteria for the detailed method. Then fill in Form T777, using the CRA's calculator for the employment-use amount. Finally, enter the amount from line 9368 on line 22900, "Other employment expenses", of your income tax return.
File the T777 with the return, but leave the receipts and supporting documents out. The CRA says the signed T2200 is kept by you and is not included with the return, and that the CRA may review a claim to check your eligibility. Employers decide who is authorized to sign the form, so ask your payroll or HR team in January.
How much tax do home office expenses save you?
A claim lowers your taxable income, so it saves tax at your marginal rate. We ran a $1,200 deduction through our calculator for two Ontario salaries.
| Salary | Tax saved by a $1,200 claim |
|---|---|
| $60,000 | $337.08 |
| $80,000 | $355.80 |
That is roughly 28 to 30 cents on the dollar. To check your own rate, try the marginal tax rate calculator, and see the full effect on your refund in the tax refund estimator. Ontario's rate shifts near $72,000 and $200,000 because the Ontario Health Premium rises in narrow bands there, so a deduction at those incomes can save a bit more or less than you expect.
Do renters and owners claim home office expenses the same way?
Mostly, yes. Renters can claim rent for the work space share, and owners cannot claim mortgage interest or principal, nor the rental value of the work space. That surprises owners, who tend to assume the biggest housing cost is the one that counts. Utilities and upkeep do most of the work in an owner's claim. Either way, the share of the home and the proof behind it are the same.
What mistakes cost people their home office expenses claim?
Missing the T2200 is number one. Ask for it in January, not in April. Next comes claiming space you also use for family life. The test is about the work space, and a corner of the kitchen table is not a strong case unless you use it for work in the way the rules describe.
The last mistake is treating a one-off purchase as a home office expense. A desk and a chair are furniture, and the CRA lists furniture as not claimable. If you work for yourself the rules are different, because the costs come off business income. See the self-employed home office deduction, and compare a worked rent example or the employee overview.
Where we checked
We read the CRA's pages on work space in the home expenses, expenses you can claim and calculating expenses in November 2026. The tax savings come from our calculators with 2026 federal and Ontario data. We are an independent site, and no government body is behind it.
Frequently asked questions
Is the flat rate method still available?
No. The temporary flat rate method does not apply to the 2023 and later tax years, according to the CRA. For a 2025 return you must use the detailed method, which needs a signed T2200, a work space percentage and the actual bills for what you paid in the period you worked from home.
Do I file the T2200 with my return?
No. Keep the signed T2200 in your records. Your employer signs it, and the CRA can request a copy later. The claim itself is worked out on Form T777 and the total goes on your return. Keep both, with the bills, for six years from the end of the tax year.
Can I claim internet and phone as an employee?
Yes, in part. The CRA lists a reasonable monthly home internet access fee and the work share of a basic cell phone plan, if you can show the work minutes or data. Connection fees, modem leases, phone purchases and cases are not on the list. Check the current CRA page before you add them.
Does the CRA allow a claim if I work from home by choice?
No. Your employer must require you to work from home, in writing or by a verbal agreement, and sign the T2200. A formal telework arrangement you agreed to counts as being required. If you work from home by your own choice, or your employer paid you back for the costs, there is no claim.
How much tax does a $1,200 claim save?
On an $80,000 Ontario salary a $1,200 deduction saves about $356 of tax in our calculator with 2026 data, and about $337 on $60,000. That is roughly 28 to 30 cents on the dollar. Your saving depends on your marginal rate and your province.
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