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

Work out your 2026 home-office deduction the way the CRA does. It takes the share of your home used for work, times the costs you can claim, capped at your income. Employees (Form T777) and the self-employed (Form T2125) get different lists, and you see the tax and CPP each dollar saves.

You are
$
Your work space
Measure it as
Square feet or metres, same unit as the home
Halls, bathrooms and kitchen count
The space is
What the whole home cost this year
$
$
$
$
$
Commission employees and the self-employed only
$
Employees cannot claim this
Insurance, condo fees, CCA, carry-forward
$
Commission employees and the self-employed only
$
Employees can claim only the utilities part
$
Your home-office deduction for 2026$480That saves you about $142, or 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 homePaidYou can claim
Mortgage interestEmployees can never claim mortgage interest, principal or CCA$18,000Not claimable
Property taxesCommission employees only$6,000Not claimable
Home insuranceCommission employees only$1,800Not 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. You must also have worked from home more than 50% of the time for at least 4 weeks in a row. Only 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 (your employment income). Tax saved = income tax on $75,000 minus income tax on $74,520. Employees can claim rent, utilities, internet, maintenance and the utilities part of condo fees. Never mortgage interest or CCA.

How this calculator works

The deduction is the work-use share of your home times the costs you are allowed to claim. The allowed list depends on who you are:

  • Salaried employees (Form T777, line 22900, with a signed Form T2200): rent, electricity, heat, water, the utilities part of condo fees, home internet access fees, and maintenance and minor repairs.
  • Commission employees: the same list plus home insurance and property taxes.
  • Self-employed (Form T2125, line 9945): everything, including mortgage interest and property taxes, and capital cost allowance if you choose.

The work-use share is the work space divided by the finished area of the home, prorated by the hours a week you work there out of 168 if you also live in the space. Employees cannot claim more than their employment income, and the self-employed cannot create a loss.

To find the tax saved, the calculator runs your income through the 2026 federal and provincial tax tables with and without the deduction. For the self-employed it also recomputes CPP, which falls with net business income below the $74,600 YMPE.

Worked example: a 150 sq ft office in a 1,500 sq ft Ontario home

The home costs $18,000 of mortgage interest, $6,000 of property tax, $4,800 of utilities and internet, $1,800 of insurance and $5,400 of maintenance a year. That is $36,000 in total. The work space is 10% of the home.

Salaried employee, $75,000Commission employee, $75,000Self-employed, $90,000 net
Costs that count$10,200$18,000$36,000
× work-use share10%10%10%
Deduction$1,020.00$1,800.00$3,600.00
Income tax saved$302.43$565.45$1,067.40
Effective rate29.6%31.4%29.7%

The commission employee’s deduction is $780.00 higher than the salaried employee’s. That is 10% of the insurance and property tax that only commission employees can claim. The self-employed person’s net income stays above the YMPE, so CPP does not change here.

Assumptions

  • Costs are for the whole home for the full year, and you worked from home all year. If you worked from home for part of the year, enter only the costs paid during those weeks.
  • The employee cap is applied to the employment income you enter. The CRA applies it to the income from that employer after other employment expenses.
  • Quebec employees also need form TP-64.3 from the employer. The Quebec return uses the same math, and the tax saving shown includes Quebec tax.
  • Office supplies, phone plans and equipment leases go on other lines of the same forms, not here.

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.

  1. Before you fileForm T2200 ↗
  2. Before you fileWho can claim (detailed method) ↗
  3. OnceDetermine your work space use ↗
  4. All yearExpenses you can claim ↗
  5. With the returnForm T777 ↗
  6. With the Quebec returnRevenu Québec: form TP-64.3-V ↗
  7. With the returnBusiness-use-of-home expenses ↗
  8. With the returnGuide 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 only covered 2020, 2021 and 2022. From 2023 on, employees use the detailed method. That means actual costs, the work-space share of your home, and a signed Form T2200 from your employer.
Do I need a T2200 from my employer?
Yes, if you are an employee. Form T2200, Declaration of Conditions of Employment, confirms you had to work from home and pay your own home-office costs. 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 also claim 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, 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, including halls, bathrooms and kitchen. Use square feet or metres. If you also live in the space, 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. The self-employed cannot use home expenses to create or increase a loss. In both cases the unused amount carries forward to 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 turns part of your home into business property. The principal-residence exemption no longer covers that part, and the CCA you claimed is recaptured when you sell. A few hundred dollars a year is rarely worth a taxable gain on your home later.
How much tax does the deduction actually save?
The deduction lowers taxable income, so the saving is roughly your marginal rate times the deduction. That is 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 too.

Tax-saving strategies that use this calculator

Sources

Sources

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

  1. CRA – Home office expenses for employees (modified 2026-01-20)
  2. CRA – Home office expenses for employees: Who can claim (modified 2026-01-20)
  3. CRA – Home office expenses for employees: Determine your work space use (modified 2026-01-20)
  4. CRA – Home office expenses for employees: Expenses you can claim (modified 2026-01-20)
  5. CRA – Home office expenses for employees: How to claim (modified 2026-01-20)
  6. CRA – Guide T4044, Employment Expenses
  7. CRA – Form T2200, Declaration of Conditions of Employment
  8. CRA – Form T777, Statement of Employment Expenses
  9. CRA – Business-use-of-home expenses, Form T2125 line 9945 (modified 2026-08-31)
  10. CRA – Income Tax Folio S4-F2-C2, Business Use of Home Expenses
  11. CRA – Guide T4002, chapter 3 (line 9945, business-use-of-home expenses)
  12. Income Tax Act s. 18(12), work space in home (Justice Laws)
  13. CRA T4127 Payroll Deductions Formulas, 123rd Edition, effective July 1, 2026 (Rev. 26/06)
  14. CRA – CPP contribution rates, maximums and exemptions
  15. CRA – Second additional CPP (CPP2) contribution rates and maximums
  16. ESDC – EI maternity and parental benefits: how much you could receive
  17. CRA – EI premium rates and maximums
  18. CRA – Indexation adjustment for personal income tax and benefit amounts
  19. Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 150(1)(d) and s. 156.1(4): filing deadlines and balance-due day
  20. Canada Employment Insurance Commission – Canada Employment Insurance Commission confirms 2027 Employment Insurance premium rate (September 14, 2026)
  21. CRA, Canadian income tax rates for individuals, current and previous years
  22. Government of Alberta, Personal income tax
  23. Government of British Columbia, Personal income tax rates (2026)
  24. Government of British Columbia, B.C. tax reduction credit
  25. Manitoba Finance, Personal income taxes
  26. CRA, T4032 Payroll Deductions Tables, New Brunswick (January 2026)
  27. Government of New Brunswick, Personal income tax
  28. Newfoundland and Labrador Department of Finance, Personal income tax
  29. Newfoundland and Labrador, Bill 16 (2026), An Act to Amend the Income Tax Act, 2000
  30. Nova Scotia Finance and Treasury Board, Personal income tax indexation update for 2026
  31. Nova Scotia Income Tax Act (consolidated), s. 35 low income tax reduction
  32. CRA, T4032 Payroll Deductions Tables, Northwest Territories (January 2026)
  33. Government of Nunavut, January 2026 Tax Rate Sheet
  34. CRA, T4032 Payroll Deductions Tables, Nunavut (January 2026)
  35. Ontario Ministry of Finance, Personal income tax rates and credits (2026 dataset)
  36. Prince Edward Island Income Tax Act (consolidated 2026)
  37. Revenu Québec, TP-1015.F-V (2026-01) Formulas to Calculate Source Deductions and Contributions
  38. Retraite Québec, Québec Pension Plan Figures 2026
  39. Gouvernement du Québec (Québec.ca), Taux de cotisations au Régime québécois d'assurance parentale (RQAP) — page updated 19 March 2026
  40. Ministère des Finances du Québec, Parameters of the Personal Income Tax System for 2026 (November 2025)
  41. Government of Saskatchewan, Personal income tax
  42. CRA, T4032 Payroll Deductions Tables, Yukon (January 2026)
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Data verified for tax year 2026: Updated By Nishant Malik, founder of GlassLayer