Self-employed expenses you can claim in Canada

Updated October 1, 2026 · Checked by the Tax-Services.ca editorial team · How we check

If you work for yourself, every legitimate cost lowers the profit you’re taxed on. The trouble is remembering them at tax time. Tick off what applies to you, and keep a receipt for every box you tick, because “I’m sure I bought it” won’t satisfy the CRA. It isn’t personal. It’s paperwork.

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Everyday costs

• Advertising, your website and domain name.
• Office supplies and small equipment.
• Software and subscriptions you use for the business.
• Bank fees and business credit card interest.
• Phone and internet: the business share only.
• Professional fees, such as an accountant, a bookkeeper or a lawyer.
• Business insurance.

Which costs need the most records?

These are the ones the CRA looks at most closely. Keep proof.

• Vehicle costs, with a log of business kilometres and total kilometres.
• Home office: the business share of rent or mortgage interest, utilities and insurance, based on floor area.
• Travel for work, with dates and the reason for each trip.
• Meals and entertainment, which are only partly deductible.
• Wages or contract payments you made to others.

Keep it simple. A folder of receipts is fine as long as every receipt is there and you can match it to a cost, and a spreadsheet that totals each category once a month will save you an evening of panic in April. That’s all most people need.

Bigger purchases

Equipment and vehicles aren’t usually deducted in full in the year you buy them. They’re claimed over time as capital cost allowance, and the rules depend on the type of asset. The self-employed tax calculator shows how your net income turns into tax once you’ve totalled your costs.

What next?

The self-employed guide explains instalments, CPP and sales tax. Our article on business expense deductions goes deeper on each category, and the documents checklist covers the rest of your return.

Frequently asked questions

Can I claim every cost of running my business?

Only what you spent to earn business income. A cost that serves both your business and your personal life is claimed for the business share only.

Do I need receipts?

Yes. Keep a receipt or invoice for every cost you claim, because the CRA can ask for them years later. A bank statement alone usually isn't enough.

Are meals fully deductible?

No. Meals and entertainment are only partly deductible. Check the CRA's current rule for the percentage before you claim them.

Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.