Today marks the first day Canadians can file their 2025 income tax returns, but new data from Employment Hero, the global leader in HR, hiring and payroll software, suggests millions may be leaving money on the table.
In 2025, 26% of Canadians worked from home at least 50% of the time for four consecutive weeks or more, making them eligible to claim home office expenses on their tax return. However, a significant portion are still not taking advantage of the available tax deductions. With remote and hybrid work now a normal part of working life, awareness and preparation around claiming work-from-home (WFH) expenses remains uneven across the country.
Among Canadians who worked from home in 2025:
- 31% are not aware they are eligible to claim home office expenses
- Over a third (36%) do not plan to claim and 13% remain unsure
- Employer support is mixed – 60% say they received no guidance on claiming WFH expenses
- Only 23% received a signed T2200 form, the most common type of employer support
The findings point to a growing disconnect between how Canadians work and how prepared they are to navigate the tax implications of remote employment.
“Remote and hybrid work are now a permanent part of how Canadians work, but awareness hasn’t fully caught up,” said KJ Lee, CEO of Employment Hero Canada. “Every year, employees miss out on legitimate tax deductions simply because they don’t realize they qualify or don’t know what paperwork they need.”
Lee emphasized that employers play an important enabling role, but many are still navigating how best to support distributed teams.
“Employers don’t need to become tax experts, but small steps can make a meaningful difference. When employees feel supported and informed, they’re more confident managing both their finances and their work,” Lee said.
KJ’s tips for employees claiming work-from-home expenses
- Ask your employer early whether you qualify for a T2200 (Declaration of Conditions of Employment)
- Confirm your work arrangement meets CRA eligibility requirements (working from home more than 50% of the time for at least four consecutive weeks)
- Keep records of home office expenses like utilities, internet and workspace costs
- Unexpected items like cleaning supplies, stationery and a portion of rent can all qualify
- Request guidance from your employer if your company has internal resources or documentation available
- Don’t assume you’re ineligible – many Canadians qualify without realizing
As remote work continues to shape the Canadian workforce, improving awareness and employer-employee communication around tax obligations will be key to ensuring workers fully understand their entitlements.
“Work has transformed in just a few years, but awareness hasn’t kept pace,” Lee added. “Making sure Canadians understand what they can claim is part of building a system that reflects how and where work really happens today.”
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