Guide · 10 min read · Canada · 2026 tax year
Every deduction Canadian freelancers can claim on Form T2125 — with CRA rules, 2026 thresholds, and the difference between a current and a capital expense.
A deductible expense must be (1) incurred to earn business income, and (2) reasonable in the circumstances. Mixed-use expenses (phone, car, home) are claimed at the business-use percentage. Anything personal is excluded, even if it indirectly benefits the business.
SnapBooks categorizes by CRA expense lines, tracks vehicle km and home-office %, and exports a clean T2125 summary for your accountant.
Start 7-day free trialAny reasonable expense incurred to earn business income — home office, vehicle, supplies, professional services, advertising, training, software, and a portion of meals (50%). The CRA test is 'reasonable in the circumstances'.
You can deduct a percentage of home expenses based on the business area's share of your home (e.g. 200 sq ft office in a 1,000 sq ft home = 20%). Allowable: rent, utilities, internet, maintenance, property tax, home insurance, and mortgage interest (not principal). Use Form T2125.
Yes — keep a logbook of business vs personal km. Deduct the business % of fuel, insurance, registration, repairs, and either lease payments or Capital Cost Allowance (CCA) on the vehicle. Passenger vehicles have CCA limits (~$38k ceiling for 2026).
Current expenses (office supplies, rent, software subs) are 100% deductible in the year. Capital expenses (laptop, vehicle, office furniture) are deducted gradually via Capital Cost Allowance (CCA) over multiple years, by asset class.
When your worldwide taxable revenue exceeds $30,000 in any 12-month period (small supplier threshold). Below that, registration is optional. Once registered, you charge GST/HST and can claim input tax credits on business purchases.
Payment due date: 30 April. Filing deadline: 15 June (for self-employed and their spouse). Tip: interest accrues on any balance owing from 1 May, so most people pay by 30 April even if they file in June.
General guidance, not personalized tax advice. Rules and thresholds change — verify against CRA and speak to a Canadian accountant for your situation.