Home › Free tools › Home Office Deduction Calculator Canada (Self-Employed)
Home office deduction — self-employed
For sole proprietors filing form T2125. Use the area of your workspace and your yearly home costs.
You can deduct this year
$0
Business-use %Home costs countedBusiness partCarried forward to next year
Your workspace must be your main place of business, or used only for business and regularly to meet clients. The deduction cannot create a loss — the extra is carried forward.
Track it all year: invoices, Gmail receipts, bank reconcile and your T2125.Join the early list
Questions
Can self-employed people claim home office expenses in Canada?
Yes, on form T2125, if the workspace is your principal place of business or you use it only for business and regularly meet clients there.
How do I calculate the business-use percentage?
Divide the area of your workspace by the total finished area of your home. A 150 sq ft office in a 1,200 sq ft home is 12.5%.
Can I claim mortgage payments?
Only the interest part of the mortgage, never the principal. Owners can also claim property tax and home insurance for the business part.
What if my home office expenses are more than my profit?
The deduction cannot create or increase a business loss. The unused amount is carried forward and claimed in a later year.
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