Canadian Tax and
Financial Information
Employee Work Space in Home Expenses

Ads keep this website free for you. does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with!

What's New
Personal Tax
Sales Taxes
Free in 30!
Financial Planning
Real Estate
Stocks Bonds etc.
British Columbia
Atlantic Provinces
Federal Budget
Provincial Budgets
Statistics etc.
Site Map
Advertise With Us
Contact Us/About Us
Links & Resources

Personal Tax
Filing Your Return
  ->  Employment Expenses -> Employee work space in home expenses

Employee Work-Space-in-Home Expenses

Income Tax Act s. 8(13)

Employees may deduct work-space-in-home expenses if their contract of employment requires them to pay the expenses, and the expenses are not reimbursable by the employer.

Canada Revenue Agency (CRA) form T2200, Declaration of Conditions of Employment, should be completed by the employee and employer in order to claim these expenses.  These expenses are entered as a deduction from income on line 229 of the personal income tax return.

In order for any expenses to be deductible, the work space must be either:

  1. the place where the individual mainly does their work, or
  2. used exclusively for earning employment income, and used on a regular and continuous basis for meeting customers or other persons in the course of performing the job.

Allowed expenses include heat, electricity, light bulbs, cleaning materials, maintenance, etc.  If the home is rented, a reasonable portion of the rent may be deducted.  Mortgage interest and capital cost allowance may not be deducted.  

Sales commission employees eligible to deduct work-space-in-home expenses may also deduct a reasonable portion of property taxes and home insurance.

CRA form T777, Statement of Employment Expenses, is used to calculate the amount of the work-space-in-home expenses allowed.

The work-space-in-home expenses can only be used to reduce employment income.  They cannot be used to create or increase a loss from employment income.  Any expenses in excess of the employment income can be carried forward to be used in the next tax year.

The work-space-in-home expenses 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.

Line 229 employment expenses can be entered in the "other deductions" line of the Canadian Tax and RRSP Savings Calculator.

CRA Resources:

    - Line 229 Other Employment Expenses

    - T4044 Employment Expenses

    - IT-352 Employee's Expenses, including work-space-in-home expenses (Archived)

Revised: May 03, 2018

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.