Freelancing in Canada? Don’t Miss These 5 Tax-Deductible Expenses That Can Lower Your Tax Bill

Freelancing offers flexibility and independence, but it also means taking charge of your own taxes. The good news? Canada’s tax system allows you to deduct many legitimate business expenses—reducing your taxable income and keeping more money in your pocket.

7/5/20252 min read

At TikiTax, we’ve helped hundreds of freelancers optimize their tax returns by claiming deductions they didn’t even know existed. Below are five of the most commonly missed—but entirely legal—freelance tax deductions you should take advantage of.

1. Home Office Expenses

If you regularly work from home, you may be eligible to deduct a portion of your rent, utilities, electricity, property taxes, and even internet costs—as long as the space is used primarily for work.

For example, if your office takes up 10% of your home’s square footage, you can typically deduct 10% of these related expenses. Just be sure the space is clearly designated for work and not personal use.

📝 Pro Tip: Keep proof like a home layout, bills, and a written description of how you use the space. CRA may request documentation.

2. Work-Related Equipment & Tools

Did you buy a laptop, monitor, ergonomic chair, software, or printer for work? Most tools and equipment you purchase specifically for business purposes are deductible.

Some larger purchases (like computers) may be deducted over several years using Capital Cost Allowance (CCA). At TikiTax, we’ll help you apply the right deduction rates and categories based on CRA rules.

3. Phone, Internet & Communication Costs

Freelancers rely heavily on phones and internet—for Zoom calls, sending invoices, chatting with clients, or updating websites. You can deduct the portion of these bills that directly relates to your business use.

For instance, if you use your internet 70% of the time for client work, you may deduct 70% of the bill. CRA expects a reasonable estimate—so keep records to support your claim.

4. Marketing & Advertising Costs

Running Facebook ads? Paying for your website domain or LinkedIn Premium? These are legitimate marketing expenses. Even printing business cards or paying for professional branding services can be claimed.

Anything you spend to promote your services, gain new clients, or maintain your online presence is fair game for deduction.

5. Professional Services (Accounting, Legal, etc.)

Hiring an accountant to help with your taxes? Seeking legal advice for client contracts? These services count as business-related expenses and are fully deductible.

And they often pay for themselves by helping you:

Avoid CRA penalties or audits
Maximize deductions you might have missed
Ensure proper, legal tax filing from the start

At TikiTax, our tax experts make sure every dollar you spend on help works harder for you.

Tax Season Doesn’t Have to Be Stressful

Every year, freelancers in Canada miss out on hundreds or even thousands of dollars in potential tax savings simply because they didn’t claim what they were entitled to.

At TikiTax, we offer: