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Home  ->  Personal Tax
Filing Your Return
  ->  Employment Expenses -> Employee Tools Deductions

Tools Deductions for Employees

Income Tax Act s. 8(1)(s), 8(1)(r)

Employed Tradesperson's Tools Deduction

A deduction may be available for tools purchased in the taxation year,  in order to earn employment income as a tradesperson (e.g. hairdresser, cook, plumber, electrician, mechanic, apprentice tradesperson, etc.).

Employed Apprentice Mechanic's Tools Deduction

If you are an eligible apprentice mechanic, you must first calculate the tradesperson's tools deduction, if any, for which you qualify.  Then, calculate the employed apprentice mechanic's tools deduction to determine if this claim can also be made.

Gain on Disposal of Employee Tools

When tools for which a deduction was previously claimed are disposed of, any gain from the disposal must be included in income on line 130 of the tax return.

Employee Tools Deduction Calculator

Let our calculator do the work for you.

Line 22900 employment expenses can be entered in the "other deductions" line of the Canadian Tax and RRSP Savings Calculator.

GST/HST Included in Tool Costs

The tool costs will include any GST/HST or provincial sales taxes incurred.  You may be eligible for a refund of the GST/HST included in the costs.  See Employee and Partner GST/HST rebate on the GST/HST page.

TaxTips.ca Resources

Labour Mobility Deduction For Employed Tradespeople

Canada Revenue Agency (CRA) Resources

Line 22900 Other Employment Expenses

T4044 Employment Expenses

Form T777 Statement of Employment Expenses

Revised: March 10, 2024

 

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