05 / A common tax question
Work-from-home tax credit in Canada?
For employees, the federal home-office claim described by CRA is an employment-expense deduction, not a separate tax credit. The $2-per-day temporary flat-rate method ended after the 2022 tax year.
Short answer
There is no current federal $2-per-day work-from-home flat-rate claim for 2023 or later tax years. CRA says eligible employees claiming home-office expenses for 2023 and later must use the detailed method.
That is a deduction from employment income, not a tax credit. Eligibility rules still apply, including the employer requirement, a qualifying work-space test, and a completed Form T2200.
What changed by tax year?
- 2020, 2021, and 2022: eligible employees could use the temporary flat rate of $2 for each work-from-home day, subject to CRA’s limits for those years.
- 2023 and later: CRA says the temporary flat rate does not apply; employees who qualify use the detailed method.
- 2026 filing: as of the source review on 2026-10-28, no CRA 2026 tax-year guide, Form T2200, or Form T777 was found. The newest T2200 version shown on the CRA form page was for 2025. Check CRA again before filing a 2026 return; this page does not treat future 2026 guidance as settled.
Why “tax credit” is the wrong label
CRA directs employees to calculate employment expenses on Form T777 and enter the amount on line 22900, “Other employment expenses.” That is a deduction, not a tax credit. Self-employed business-use-of-home expenses are a separate claim on Form T2125, line 9945.
The deduction method is not a guaranteed refund. Whether an employee qualifies and what amount may be claimed depend on the applicable rules and actual eligible expenses. This page does not estimate anyone’s tax savings.
Sources (checked 2026-10-28)
The CRA sources below were retrieved 2026-10-28.
- Canada Revenue Agency, “What the changes are”. Retrieved 2026-10-28; page modified 2026-01-20.
- CRA, “Who can claim”. Retrieved 2026-10-28; page modified 2026-01-20.
- CRA, Detailed-method criteria. Retrieved 2026-10-28; page modified 2026-01-20.
- CRA, “How to claim”. Retrieved 2026-10-28; page modified 2026-01-20.
- CRA, Form T2200 page. Retrieved 2026-10-28; page dated 2026-02-06; 2025 form shown as the latest version.
Tax guidance can change. Verify current CRA guidance and forms for the tax year you are filing.