If you run a business, consult or drive for Uber from home, part of your home costs may be deductible. Here’s how it works for the 2026 tax year.
Do you qualify?
As a self-employed person, you can claim business-use-of-home expenses if the space is either your principal place of business, or used only to earn business income and used on a regular basis to meet clients or customers.
How to work out your share
Most people use floor area: divide the square footage of the workspace by the total finished area of the home. If the space is also used personally (for example a dining table), reduce the claim further by the share of time it is used for business.
Costs you can include
- Rent, or mortgage interest (not the principal) if you own
- Electricity, heat and water
- Home insurance and property taxes (if you own)
- Maintenance and minor repairs
- Internet, in proportion to business use
Claiming capital cost allowance (depreciation) on your home is possible but usually a bad idea, because it can affect the principal residence exemption when you sell. Ask us first.
The limits
Home office expenses can’t create or increase a business loss. Any unused amount carries forward to future years. Keep receipts and a simple floor plan in case the CRA asks.
Employees are different
If you are an employee working from home, you need a signed T2200 or T2200S from your employer and can claim fewer types of costs. The temporary flat-rate method is no longer available.
Frequently asked questions
Can I claim home office expenses if I’m self-employed?
Yes, if the space is your principal place of business, or you use it only for business and regularly meet clients there. You claim the business share of costs such as rent, utilities, home insurance and maintenance.
Can home office expenses create a business loss?
No. Business-use-of-home expenses can only reduce business income to zero. Any unused amount can be carried forward to the next year.
Can employees still use the flat-rate home office method?
No. The temporary flat-rate method ended after the 2022 tax year. Employees now need a signed Form T2200 or T2200S from their employer and must use the detailed method.
Self-employed? We help with small business taxes, bookkeeping and driver taxes in Calgary.
Need help? Garg Accounting is a CPA-led accounting and tax firm in Northeast Calgary (4310 104 Avenue NE, Unit 3230). Call 368-995-6000 or book an appointment.
