What Can You Claim as a Business Expense in Canada? Let’s Break It Down

helina216
Jun 20, 2025
2 min read

Running a business in Canada? You’re probably paying out of pocket for a lot , coffee for meetings, new software, maybe even your home internet. But which of those costs can legally help you pay less in taxes?

Good news: the Canada Revenue Agency (CRA) allows you to deduct many of your business-related expenses , if you know what counts.

Let’s make it simple.

The Golden Rule: It Must Be Business-Related

If you spend money to earn income, it might qualify as a business expense. Think of it this way — if you didn’t run your business, would you have made that purchase? If the answer is no, it might be deductible.

Here are the top categories most small business owners don’t realize they can claim:

1. Home Office Expenses

Working from your kitchen table or that cozy corner office? If it’s your primary workspace, you may claim:

A portion of rent or mortgage interest
Utilities (heat, electricity, water)
Home internet
Repairs to your workspace

You’ll need to calculate the percentage of your home used for business. For example, if your office takes up 10% of your home, you can deduct 10% of eligible home expenses.

2. Supplies & Equipment

Not just pens and notebooks — this includes laptops, software subscriptions (like Zoom or QuickBooks), and tools of your trade. Bought a camera as a content creator? That counts. Just keep the receipts , always.

3. Vehicle Costs

If you use your car for business, you can claim:

Gas
Maintenance
Insurance
Lease payments

BUT — only for the business-use portion. Keep a logbook of business vs. personal trips. No logbook = no love from CRA.

4. Meals & Entertainment

Yes, you can write off that client lunch — but only 50% of the cost. Dinner with your BFF doesn’t count unless your BFF is also your business partner or client. CRA doesn’t do “vibes only” expenses.

5. Marketing & Advertising

Running Facebook ads? Paying for your website domain? Branded merch? All of it can be claimed. You’re investing in growing your biz, and CRA respects the hustle.

6. Professional Services & Training

Accountants, lawyers, business coaches — if you hired them for your business, they’re claimable. So are courses that upgrade your skills, as long as they’re business-relevant.

Final Tip: Keep It Clean

The CRA loves organized entrepreneurs. Keep digital or physical copies of your receipts, categorize everything, and consider using accounting software to stay on top of things. (We can help with that, btw!)