Employees can deduct certain work expenses against employment income — but only with a signed T2200 from your employer. Here's what qualifies.
Most Canadians know that self-employed individuals can deduct business expenses. What fewer know is that employees can also deduct certain work-related expenses — but the rules are strict. The CRA requires a signed Declaration of Conditions of Employment (Form T2200) from your employer before you can claim employment expenses. Without a T2200, the CRA will disallow most employment expense claims.
Form T2200 is a declaration by your employer confirming the conditions of your employment that require you to incur certain expenses. You do not file the T2200 with your tax return — keep it on file in case the CRA requests it. Your employer is not required to sign a T2200, and some employers refuse. If your employer won't provide one, you generally cannot claim employment expenses (except for union dues and certain other amounts).
The T2200 confirms:
You can claim home office expenses if you are required by your employment contract to maintain a home office, and you use the space exclusively (or primarily, for commission employees) for work. The workspace must be where you mainly (more than 50% of the time) do your work, or used exclusively for meeting clients/customers on a regular and continuous basis.
Eligible expenses (proportional to workspace):
NOT eligible for employees (only for self-employed): Mortgage interest, property taxes, home insurance, CCA/depreciation on the home.
Calculation: Total eligible home expenses × (workspace area ÷ total home area) = deductible amount. For example, if your home office is 150 sq ft in a 1,500 sq ft home (10%) and total eligible home expenses are $20,000/year, your deduction is $2,000.
If your T2200 confirms you are required to use your vehicle for work (travelling to different work locations, visiting clients), you can deduct a portion of vehicle expenses proportional to employment use.
Keep a mileage log: Record every work trip — date, destination, purpose, kilometres driven. The CRA requires a mileage log to support vehicle expense claims.
Eligible vehicle expenses:
Calculation: Total vehicle expenses × (employment km ÷ total km driven) = deductible amount. Track total km driven for the year and km driven for employment purposes.
Eligible tradespersons and apprentice mechanics can deduct the cost of new tools required for employment, up to a maximum of $500 per year (federally). The deduction applies to tools purchased in excess of the Canada Employment Amount ($1,433 in 2025).
Eligible tradespersons are those who are employed in a qualifying trade and required by their employer to provide their own tools. Qualifying trades include plumbers, electricians, carpenters, auto mechanics, sheet metal workers, and others defined in the Apprenticeship and Certification Act or equivalent provincial legislation.
Apprentice mechanics have a separate, higher deduction (up to the full cost of eligible tools) under different rules.
Office supplies, stamps, and other consumables used directly in your work (and required by your employment contract) may be deductible. This does not include capital items (computers, phones) — those require CCA.
If your employment contract requires you to hire an assistant and you pay them from your own funds, that salary may be deductible. The assistant must be arm's-length.
Legal fees paid to collect or establish a right to salary or wages owed by your employer are deductible on Line 22900.
If you deduct employment expenses and are not reimbursed by your employer, you may be eligible for a GST/HST rebate (Form GST370) on the GST/HST portion of those expenses. File it with your return — it's a separate refund from the CRA.
Commission salespeople who are required by their employment contract to pay their own expenses have access to a broader set of deductions than regular employees. In addition to the expenses above, commission employees can deduct:
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