Complete List of Small Business Deductions
All expenses must be incurred for the purpose of earning business income. Keep receipts and maintain records for 6 years. Percentages indicate what portion is typically deductible.
Advertising & Marketing 100%
Google Ads, Facebook Ads, print advertising, business cards, flyers, promotional materials, sponsorships, trade show costs
Accounting & Legal 100%
Bookkeeper, accountant, CPA fees, lawyer fees for business contracts, tax preparation, incorporation costs
Bank Charges 100%
Business account fees, wire transfer fees, NSF charges, credit card processing fees (Stripe, Square, PayPal fees)
CCA (Capital Cost Allowance) Varies
Depreciation on business assets: computers (Class 10, 55% year 1), equipment (Class 8, 20%), vehicles (Class 10, 30%), buildings (Class 1, 4%)
Client Meals & Entertainment 50%
Restaurant meals with clients, hockey tickets, golf, events — 50% of cost is deductible. Business purpose must be documented.
Continuing Education 100%
Online courses, conferences, workshops, books, subscriptions directly related to your business skills
Delivery & Shipping 100%
Courier, Canada Post, shipping supplies, postage
Employee Wages 100%
Salaries, wages, bonuses, CPP/EI employer contributions, group benefits. Must be reasonable for the work performed.
Equipment Rental 100%
Rented equipment used in the business — camera rentals, machinery rentals, tool rentals
Fuel for Business Vehicles Business %
Proportional to business use kilometres divided by total kilometres. Requires logbook.
Home Office Workspace %
Rent/mortgage interest, utilities, internet — proportional to workspace sq ft. Self-employed can also deduct property tax and insurance.
Insurance 100%
Business liability, professional liability (E&O), commercial auto, product liability, business interruption insurance
Interest & Bank Fees 100%
Interest on business loans, lines of credit used for business, lease financing charges
Licenses & Permits 100%
Business registration, professional licenses, municipal business permits, industry association fees
Meals (During Business Travel) 50%
Meals while traveling for business away from your regular work location. CRA flat rate: $23/meal ($69/day) if no receipts.
Office Supplies 100%
Paper, ink, pens, staplers, printer cartridges, notebooks, folders — any consumable office supply
Phone & Internet Business %
Business-use proportion of your cell phone plan and home internet. If phone is used 70% for business, deduct 70%.
Rent (Office/Studio/Workspace) 100%
Commercial office rent, co-working space memberships (WeWork, Regus), recording studios, photography studios
Repairs & Maintenance 100%
Repairs to business equipment and vehicles. Note: improvements that extend asset life must be capitalized, not expensed.
Salaries to Family Members 100% if reasonable
Salary must be reasonable and at market rate for actual work performed. Must be declared as income by the family member.
Software Subscriptions 100%
QuickBooks, FreshBooks, Wave, Adobe Creative Cloud, Figma, Slack, Zoom, project management tools used for business
Travel (Business) 100%
Flights, hotels, ground transportation, car rental for business travel. Must have a genuine business purpose — not mixed personal.
Uniforms & Protective Clothing 100%
Required uniforms or safety gear that cannot be worn outside of work. Regular clothing is NOT deductible even if worn for work.
Vehicle Expenses Business %
Fuel, insurance, maintenance, CCA on vehicle — proportional to business use km. 2025 per-km rate: $0.72 first 5,000 km.
Website & Domain 100%
Domain registration, hosting fees, web design costs, SSL certificates, e-commerce platform fees