How to Claim Home Office Expenses (Form T2200)
Employees who work from home can deduct home office expenses — but only with a signed T2200 from their employer. The detailed method claims a share of rent, utilities, and more; the temporary flat rate was $2/day (ended 2022, but the detailed method remains).
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official CAN sources(2025-Latest).
0 of 7 steps
- Before You Go 15 min
Check you meet the workspace rules
The space must be either (a) your principal place of work (no other regular office), or (b) used exclusively for work on a regular, continuous basis (a dedicated room, not the kitchen table), or (c) used to meet clients regularly. Commissioned employees have extra limits (no mortgage principal, capped at income).
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- Before You Go 20 min
Get Form T2200 from your employer
The T2200 is a form YOUR EMPLOYER fills in and signs — it confirms your contract requires you to work from home and pay your own expenses. Without it, the CRACanada Revenue Agency — Canada's tax agency. It administers income tax, benefits like the GST/HST credit, and CRA My Account.Click for official info ↗ disallows the deduction. Ask HR; since 2020 most employers have a standard process. You do not submit the T2200 with your return — keep it in case the CRACanada Revenue Agency — Canada's tax agency. It administers income tax, benefits like the GST/HST credit, and CRA My Account.Click for official info ↗ asks.
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- Fill / Prepare 30 min
Calculate your workspace share
Measure the workspace area and divide by total home area (e.g. a 10 m² bedroom in a 100 m² apartment = 10%). Apply that percentage to eligible costs: rent (or mortgage interest + property tax for commission employees), utilities, home insurance, maintenance. Only employment-use share counts — a home used 40% for work means 10% × 40% of costs.
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- Fill / Prepare 30 min
Complete Form T777 with your return
The T777 totals your employment expenses and flows onto your T1 as a deduction. Your tax software has an employment expenses section that generates it. Enter the workspace details, expense categories, and employer info exactly as on the T2200 — mismatches trigger reviews.
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- Fill / Prepare 15 min
Add supplies and phone/internet
Office supplies (paper, ink, stationery) are 100% deductible with receipts. Phone: the employment-use portion of the monthly fee plus long-distance work calls — the CRACanada Revenue Agency — Canada's tax agency. It administers income tax, benefits like the GST/HST credit, and CRA My Account.Click for official info ↗ accepts a reasonable percentage; home internet likewise (typically 25–50% for full-time remote). Personal devices and furniture are not deductible for employees.
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- Submit & Pay 10 min
File and keep everything for 6 years
File your T1 with the T777 attached (NETFILENETFILE — CRA's service for filing your own tax return online using certified software.Click for official info ↗ software handles this). Keep the signed T2200, receipts, and floor calculations for 6 years — home office claims are among the most-reviewed deductions, and the CRACanada Revenue Agency — Canada's tax agency. It administers income tax, benefits like the GST/HST credit, and CRA My Account.Click for official info ↗ request letter asks for exactly these documents.
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- Follow Up —
If the CRA reviews your claim
A review letter is not an audit accusation — respond within the deadline (usually 30 days) with the T2200 copy and receipts. Responding on time usually closes it with no change. If disallowed for a missing T2200, you can ask your employer to issue one retroactively or object to the assessment.
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FAQ
Frequently Asked Questions
Can I still use the $2/day flat rate method?
No — the temporary flat rate method ($2/day, max $400) applied only to 2020, 2021, and 2022 tax years due to COVID. From 2023 onward, only the detailed method with a T2200 is available.
I work from a desk in my living room. Can I claim?
Only if the desk area is used exclusively and regularly for work — a corner of a multi-purpose room fails the "exclusive use" test unless you can show the space itself is dedicated. The principal-place-of-work test (no other office provided) is the easier route for most remote employees.
Self-employed? Do I need a T2200?
No — the T2200 is only for employees. Self-employed people claim home office expenses directly on Form T2125 (business income statement) using the same workspace-share math, with more generous rules (a reasonable share of rent, utilities, insurance, property tax, and CCA if you own).
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