Can employees claim work expenses in Canada?
Some can — but only with the employer's signature. Most employees in Canada cannot deduct what they spend on their job. You may claim certain expenses if all of these are true:
- your employment contract required you to pay them
- you were not paid a non-taxable allowance to cover them
- your employer completes and signs Form T2200, Declaration of Conditions of Employment, for the year
That is a real difference from New Zealand, where employees can't claim work expenses at all.
The two forms
Form T2200 comes from your employer. It confirms the conditions of your job: that you had to pay certain expenses, work away from the employer's place of business, or use a vehicle, and whether you were reimbursed. You keep it with your records; you don't file it unless the CRA asks. The CRA notes that a completed T2200 isn't needed to claim accounting and legal fees.
Form T777, Statement of Employment Expenses, is yours. It works out the deduction, and the total goes on line 22900 of your return.
What the CRA expects you to keep
The CRA's guidance for employment expenses asks you to keep:
- daily expense records, with receipts and cancelled cheques
- travel tickets and invoices, and credit card statements
- a mileage log showing total kilometres and kilometres driven for work, if you claim a vehicle
- for a vehicle or instrument you bought: its cost, the date and the seller
- sale documents if you disposed of one
Records, "whether paper or electronic", are generally kept for at least 6 years from the end of the tax year — see how long to keep receipts for the CRA.
Working from home
Employees who worked from home and meet the CRA's conditions can claim some home office expenses. The temporary flat rate used during the pandemic does not apply from the 2023 tax year, so the claim is for actual costs, backed by receipts, and like other employment expenses it rests on a T2200 from your employer. The CRA's home office page for employees sets out who qualifies, which costs count and how to apportion them.
If you are self-employed instead
Contractors and freelancers who work for themselves don't need a T2200. They deduct business expenses on Form T2125, Statement of Business or Professional Activities, and keep the same kind of records. Where there is no receipt, see claiming business expenses without receipts.
Sources
Common questions
Can employees claim work expenses in Canada?
Some can. Most employees cannot, but you may deduct certain costs if your employment contract required you to pay them, you weren't paid a non-taxable allowance for them, and your employer completes and signs Form T2200.
What is Form T2200?
The Declaration of Conditions of Employment. Your employer fills it in and signs it to confirm the conditions of your job, such as that you had to pay certain expenses. You keep it; you don't send it with your return unless the CRA asks.
What is Form T777?
The Statement of Employment Expenses. You use it to work out the employment expenses you can deduct, and the total goes on line 22900 of your return.
What records does an employee need to keep?
Receipts and cancelled cheques for the expenses, travel tickets and invoices, credit card statements, and a mileage log showing total and work kilometres if you claim a vehicle. Keep them for at least six years from the end of the tax year.
Do I need a T2200 for every expense?
For most employment expenses, yes. The CRA's exception is accounting and legal fees, which you can claim without a completed T2200.
Every figure on this page is checked against the CRA's own guidance and linked in the sources above. Last checked . Thresholds change each tax year, so if you are reading this well after that date, confirm the current figures before you rely on them. Terms.
Keep reading
How long do you need to keep receipts for the CRA?
Six years from the end of the last tax year they relate to. When the clock starts, when it runs longer, and why your records have to be kept in Canada.
ReadCan you claim business expenses without receipts in Canada?
The CRA can deny what you can't support, and there is no small-expense exemption. What other evidence helps when a receipt is lost, and how to avoid needing it.
ReadCanadian tax year dates and deadlines for the self-employed
The tax year is the calendar year. When to file (30 April or 15 June), when to pay, instalment dates, and the GST/HST return for sole proprietors.
Read