Steps to Calculate Workspace in the Home
Measure the Workspace
Determine the square footage of the area used for work (e.g., home office or work area).
Include only the space exclusively or primarily used for work purposes.
Calculate the Total Home Space
Measure the total square footage of your house, including all living areas.
Determine the Usage Percentage
Divide the workspace square footage by the total home square footage to calculate the percentage used for work.
Example: If your home is 1,000 square feet and your workspace is 200 square feet, the usage percentage is 200 / 1,000 = 20%.
Adjust for Time Used
If the workspace is not used full-time for work (e.g., shared with personal use), calculate the percentage of time it is used for work.
Example: If the workspace is used for work 40 hours per week out of 168 total hours, the time usage percentage is 40 / 168 = 23.8%.
Combine Percentages
Multiply the space usage percentage by the time usage percentage to determine the final claimable percentage.
Example: 20% space usage x 23.8% time usage = 4.76% of home expenses can be claimed.
What Expenses Can You Deduct?
Once you calculate the percentage of your home used for work, you can apply it to eligible expenses, including:
Utilities (e.g., electricity, heating, water)
Rent (if renting your home)
Maintenance and repairs specific to the workspace
Property taxes and mortgage interest (for self-employed individuals only)
Internet and phone (based on work-related use)
Use the CRA Calculator
For accuracy, use the CRA Workspace in the Home Calculator to calculate your allowable expenses: CRA Calculator.
Important Notes
Keep detailed records, such as bills, invoices, and workspace measurements, in case the CRA requests verification.
For self-employed individuals, use Form T2125 to report home office expenses.
For employment expenses, use Form T777 and ensure you have a signed T2200 or T2200S from your employer.
Save the output from the CRA calculator with your tax return for record-keeping purposes