In the Canadian Income Tax and RRSP Savings Calculator, employment expenses can be included on the "other deductions" line.
Conditions For Claiming Employment Expenses
Expenses Not Deductible From Employment Income
Expenses Related to Employment
Employees Capital Cost Allowance (CCA)
Tuition Fees, Examination Fees for Licensing or Certification
GST/HST on Employment Expenses - Employee and Partner GST/HST Rebate
Canada Revenue Agency (CRA) Resources
Expenses that are paid to earn employment income are sometimes deductible, including any GST/HST that was paid on them. This can only be done if your employer requires you to pay the expenses, and either you didn't receive reimbursement for the expenses, or the amount you did receive is included in your income. Form T2200 must be completed by your employer in order to claim employment expenses - see below.
Where an employer requires an employee to pay for and use personal protective equipment while carrying out their employment duties, the cost of these items may be deductible. See Technical Interpretation 2020-0867061I7, and the June 2021 Life in the Tax Lane video from Video Tax News.
Expenses that are NOT deductible include premiums paid for medical, dental, group insurance, and emergency travel medical insurance. Some of these items may be deductible as medical expenses.
Premiums paid for disability insurance coverage are also not deductible, but if you eventually have to receive disability insurance, it may be tax free if you have paid the premiums. See our article Disability Insurance - Pay Your Own Premiums.
Employee work-space-in-home expenses - includes info re working from home during the COVID-19 pandemic as well as information re those still working at the regular place of business, but possibly incurring additional expenses.
Employee motor vehicle travel expenses
Employees meals and lodging expenses - transport and railway employees
Employee clothing and footwear
- Tools deduction for employed tradespersons
- Tools deduction for eligible apprentice mechanic
- Gain on disposal of employee tools
Labour Mobility Deduction For Eligible Tradespeople
Moving Expenses Deduction Line 21900
Employees earning commission income can claim CCA if certain conditions are met.
Employed musicians can claim CCA on a musical instrument if it had to be provided as a condition of employment.
See T4044 Employment Expenses - Chapter 10 Capital Cost Allowance for more information, including information on enhanced CCA for used ZEVs purchased after March 1, 2020. See also How to calculate capital cost allowance in the same guide, for detailed information on what amounts to enter into each column of the CCA schedule on Form T777.
When a capital property is sold, the amount to enter in column 5, Proceeds of Disposition, is the LESSER of:
Tuition is normally not claimed as an employment expense even though it may be related to employment. There is an exception for commission employees. See our article on the Tuition Tax Credit.
Fees paid to take an examination to obtain a professional status for an occupation, trade or professional, or to be licensed or certified as a tradesperson, may be eligible for the tuition tax credit.
See Eligible tuition fees on the CRA website, and scroll down to Examination fees for licensing or certification, which provides an example of the type of official receipt required to substantiate the claim for tuition.
Some other expenses may be deducted as office or employment expenses:
Other employment expenses which may be deductible and are explained in the CRA guide T4044 Employment Expenses (see link at bottom), include:
In order to claim many of the above deductions, CRA form T2200, Declaration of Conditions of Employment (see link at bottom), must be completed by the employee and employer.
Form T777 Statement of Employment Expenses (see link at bottom) must be completed, and the deductions are claimed on line 22900 of the tax return.
The above deduction amounts will include GST/HST and any provincial retail sales tax paid. 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.
Are you a shareholder-employee and have employment expenses to claim on your tax return? See the CRA document Shareholder-employees: Here's what you need to know about claiming employment expenses. This is discussed in the Life in the Tax Lane November 2019 video.
Employee Tax Topics on our Personal Income Tax page
Employee vs Self-Employed Contractor
Employee/Partner GST/HST Rebate
Note - all IT bulletins are archived
Line 21200 Annual union, professional or like dues
Line 22900 Other Employment Expenses
Retirement compensation arrangements
T2200 Declaration of Conditions of Employment (pdf)
T4044 Employment Expenses including CCA on Zero-Emission Vehicles
T777 Statement of Employment Expenses
IT-99R5 Legal and Accounting Fees
IT-141R-Consolid. Clergy residence deduction and
Line 23100 Clergy residence deduction
IT-158R2 Employees' professional membership dues
IT-167R6 Registered pension plans - employee's contributions
IT-379R Employees profit sharing plans - allocations to beneficiaries