Can I still claim the $2-a-day flat rate for working from home?

No. The temporary flat rate method applied to 2020, 2021 and 2022 only. For 2023 and later years employees use the detailed method: actual costs, the work-space share of the home, and a signed Form T2200 from the employer.

Do I need a T2200 from my employer?

Yes, if you are an employee. Form T2200, Declaration of Conditions of Employment, confirms you were required to work from home and to pay your own home-office costs. You keep it with your records rather than filing it; the claim itself goes on Form T777 and line 22900.

What can a salaried employee claim, and what can a commission employee add?

Salaried employees claim the work-space share of electricity, heat, water, the utilities part of condo fees, home internet access fees, maintenance and minor repairs, and rent. Commission employees can add home insurance and property taxes. No employee can claim mortgage interest, principal, furniture or capital repairs.

Can I deduct mortgage interest for my home office?

Only if you are self-employed. On Form T2125 the business-use share of mortgage interest, property taxes and insurance all count. Employees, whether salaried or on commission, can never deduct mortgage interest or principal.

How do I calculate the share of my home used for work?

Divide the size of the work space by the finished area of the whole home (halls, bathrooms and kitchen included), in square feet or metres. If the space is also used for living, multiply by the hours a week you work there out of 168; a kitchen table used 40 hours a week counts for 40 ÷ 168 = 23.8% of its area.

What if the deduction is more than my income?

Employees cannot deduct more than the employment income the expenses relate to, and the self-employed cannot use business-use-of-home expenses to create or increase a loss. In both cases the unused amount carries forward to the next year, as long as you are still with the same employer or running the same business.

Should I claim capital cost allowance on my home?

Almost never. CCA is optional for the self-employed and it converts part of your home into business property: the principal-residence exemption no longer covers that part, and the CCA claimed is recaptured when you sell. A few hundred dollars of deduction a year is rarely worth taxable gains on a home later.

How much tax does the deduction actually save?

The deduction reduces taxable income, so the saving is roughly your marginal rate times the deduction: about 30% at $75,000 in Ontario. For the self-employed it also lowers net business income, so CPP contributions (11.9% on income under the $74,600 YMPE) fall as well. The calculator runs both through the 2026 tax engine rather than a flat rate.

Home Office Deduction Calculator (Employees and Self-Employed, 2026)

Work out your 2026 home-office deduction the way the CRA does: the share of your home used for work times the costs you may claim, capped at your income, with the unused part carried forward. Employees (Form T777) and the self-employed (Form T2125) follow different lists; the tool shows the tax and CPP each dollar saves.

You are

Employment income from this employer

Province

Your work space

Measure it as

Work space

Square feet or metres, same unit as the home

Whole home (finished area)

Halls, bathrooms and kitchen count

The space is

What the whole home cost this year

Rent

Electricity, heat and water

Home internet

Maintenance and minor repairs

Property taxes

Commission employees and the self-employed only

Mortgage interest

Never claimable by employees

Insurance, condo fees, CCA, carry-forward

Home insurance

Commission employees and the self-employed only

Condo fees

Employees: only the utilities part of the fees

Unused amount carried from last year

Your home-office deduction for 2026$480That saves about $142 (29.6% of the deduction). Enter it on Form T777 (line 9368) → line 22900 of your return, with a signed Form T2200 from your employer kept on file.

Cost for the whole home	Paid	You can claim
Mortgage interestEmployees can never claim mortgage interest, principal or CCA	$18,000	Not claimable
Property taxesCommission employees only	$6,000	Not claimable
Home insuranceCommission employees only	$1,800	Not claimable
Utilities (electricity, heat, water)	$3,000	$300.00
Home internet access fees	$1,200	$120.00
Maintenance and minor repairs	$600	$60.00

Eligible costs for the whole home	$4,800.00
Work-use share (10.0% of the home)	10.00%
This year's work-use amount	$480.00
Cap: your employment income	$75,000
Deduction (T777 line 22900)	$480.00
Income tax saved	$142.32

Before you claim. You need a signed Form T2200 from your employer, and you must have worked from home more than 50% of the time for at least 4 consecutive weeks. Only the costs paid during the weeks you worked from home count.

Show the math

Work-use share = work space ÷ home area = 10.00%. Eligible costs $4,800.00 × 10.00% = $480.00, capped at $75,000 (employment income). Tax saved = income tax at $75,000 minus income tax at $74,520. Employees claim rent, utilities, internet, maintenance and the utilities part of condo fees; never mortgage interest or CCA.

What you need to know for 2026

Employees use the detailed method only (the $2-a-day flat rate ended after 2022): a signed Form T2200 from the employer, more than 50% of the time worked from home for at least 4 consecutive weeks, claimed on Form T777 and line 22900.
Salaried employees claim the work-space share of electricity, heat, water, home internet, maintenance and rent; commission employees add home insurance and property taxes. No employee can claim mortgage interest or CCA.
A space also used for living is prorated by the hours a week it is used for work out of 168; a room used only for work counts in full.
The self-employed deduct the business-use share of every home cost, including mortgage interest and property taxes, on Form T2125 line 9945; the claim cannot create a loss and the excess carries forward.
CCA on the home is optional and rarely wise: the business part loses the principal-residence exemption and the CCA is recaptured on sale.
For the self-employed the deduction also cuts CPP: 11.9% (both halves) on net income between $3,500 and the $74,600 YMPE.

How to claim the home-office deduction

Employees need one form from the employer and one with the return; the self-employed fill in one part of the business statement. Keep the measurements and receipts for six years.

Before you fileAsk your employer for a completed and signed Form T2200, Declaration of Conditions of Employment. It confirms you were required to work from home and to pay your own costs. Keep it; it is not filed with the return.Form T2200 ↗
Before you fileCheck the eligibility test: you worked from home more than 50% of the time for at least four consecutive weeks, and you paid the costs yourself. Only the weeks that qualify count.Who can claim (detailed method) ↗
OnceMeasure the work space and the finished area of the whole home (halls, bathrooms and kitchen included). For a shared space, note the hours a week you work there.Determine your work space use ↗
All yearKeep the bills: rent or mortgage statements, property tax, insurance, utilities, internet and repairs. The CRA reviews home-office claims and asks for receipts.Expenses you can claim ↗
With the returnFill in the work-space-in-the-home section of Form T777 and carry line 9368 to line 22900 of the return. File the T777 with the return.Form T777 ↗
With the Quebec returnQuebec employees also need form TP-64.3 (General Employment Conditions) signed by the employer, and claim the expenses on the Quebec return with form TP-59.Revenu Québec: form TP-64.3-V ↗
With the returnComplete Part 7 of Form T2125, calculation of business-use-of-home expenses, and carry the result to line 9945. Any amount over your net business income carries forward to next year.Business-use-of-home expenses ↗
With the returnLeave the CCA line at zero unless you have taken advice: claiming CCA on the home costs part of the principal-residence exemption and is recaptured when you sell.Guide T4002, chapter 3 ↗

Common questions

Frequently asked questions

Can I still claim the $2-a-day flat rate for working from home?: No. The temporary flat rate method applied to 2020, 2021 and 2022 only. For 2023 and later years employees use the detailed method: actual costs, the work-space share of the home, and a signed Form T2200 from the employer.
Do I need a T2200 from my employer?: Yes, if you are an employee. Form T2200, Declaration of Conditions of Employment, confirms you were required to work from home and to pay your own home-office costs. You keep it with your records rather than filing it; the claim itself goes on Form T777 and line 22900.
What can a salaried employee claim, and what can a commission employee add?: Salaried employees claim the work-space share of electricity, heat, water, the utilities part of condo fees, home internet access fees, maintenance and minor repairs, and rent. Commission employees can add home insurance and property taxes. No employee can claim mortgage interest, principal, furniture or capital repairs.
Can I deduct mortgage interest for my home office?: Only if you are self-employed. On Form T2125 the business-use share of mortgage interest, property taxes and insurance all count. Employees, whether salaried or on commission, can never deduct mortgage interest or principal.
How do I calculate the share of my home used for work?: Divide the size of the work space by the finished area of the whole home (halls, bathrooms and kitchen included), in square feet or metres. If the space is also used for living, multiply by the hours a week you work there out of 168; a kitchen table used 40 hours a week counts for 40 ÷ 168 = 23.8% of its area.
What if the deduction is more than my income?: Employees cannot deduct more than the employment income the expenses relate to, and the self-employed cannot use business-use-of-home expenses to create or increase a loss. In both cases the unused amount carries forward to the next year, as long as you are still with the same employer or running the same business.
Should I claim capital cost allowance on my home?: Almost never. CCA is optional for the self-employed and it converts part of your home into business property: the principal-residence exemption no longer covers that part, and the CCA claimed is recaptured when you sell. A few hundred dollars of deduction a year is rarely worth taxable gains on a home later.
How much tax does the deduction actually save?: The deduction reduces taxable income, so the saving is roughly your marginal rate times the deduction: about 30% at $75,000 in Ontario. For the self-employed it also lowers net business income, so CPP contributions (11.9% on income under the $74,600 YMPE) fall as well. The calculator runs both through the 2026 tax engine rather than a flat rate.

Full guide: how it works, a worked example, every rule and every source Read the guide →

What changed in 2025 and 2026

Home-office expenses in Canada: employees (T2200 and T777) vs self-employed (T2125), 2026Who can deduct home-office costs in 2026, which costs count for salaried, commission and self-employed workers, and what a typical claim saves.

Sources

Every figure on this page comes from one of these primary sources. Data last verified September 7, 2026.

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Data verified for tax year 2026: September 7, 2026 Updated September 11, 2026 By Nishant Malik, founder of GlassLayer

Home Office Deduction Calculator (Employees and Self-Employed, 2026)

How to claim the home-office deduction

Frequently asked questions

What changed in 2025 and 2026

Sources

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