How to Claim Your Cell Phone for Business Use

In today’s world, your cell phone is more than a personal device — it’s your portable office. From client calls and emails to banking and marketing, your phone keeps your business running.

The good news: the Canada Revenue Agency (CRA) lets you deduct the business-use portion of your cell phone bill. But there are rules to follow — especially if you also use the phone personally.

Let’s go over how to do it right.

1. You Can’t Claim the Whole Bill (Unless It’s 100% Business)

If your phone is used for both personal and business reasons, the CRA only allows you to deduct the percentage used for business.

That means you’ll need to estimate your business-use percentage.

For example:

• 50% of your calls, texts, and data are for business → you can claim 50% of your total bill.

• If you have a dedicated work phone line or plan, you can usually claim 100%.

💡 Tip: A simple way to estimate is to review your phone usage history for one month and calculate what percentage is business-related.

2. What Cell Phone Costs Can You Deduct?

You can claim the business portion of:

• Your monthly plan fees (voice, data, and text)

• Long-distance charges or extra minutes for business calls

• Roaming charges when traveling for work

• New phone purchases (if primarily used for business)

If you buy a new phone, you can usually claim CCA (Capital Cost Allowance) — which spreads the deduction over multiple years instead of claiming the full cost at once.

3. How to Calculate Your Business-Use Percentage

Here’s an example:

• Monthly phone bill: $100

• Business-use percentage: 60%

✅ Claimable amount: $100 × 60% = $60/month
That’s $720 per year — and it adds up quickly.

Keep in mind that your business-use percentage should be reasonable and consistent with your type of work.

For instance, a real estate agent or consultant may have higher business use (70–90%), while a part-time freelancer may be closer to 40–50%.

4. Keep Records — CRA May Ask for Proof

If CRA audits your claim, you’ll need to show how you calculated your business-use percentage.

Make sure to keep:

• Monthly phone bills

• Notes or spreadsheets showing business call estimates

• Receipts for phone purchases or accessories

If you have a dedicated business line, label it clearly in your accounting records.

5. Avoid Common Mistakes

🚫 Claiming 100% of a personal phone — CRA will question this unless you have a dedicated business device.
🚫 Forgetting to include occasional data overages or travel costs.
🚫 Not keeping receipts or usage logs.

CRA doesn’t require a perfect system — but your estimates should be reasonable and backed by evidence.

6. Make It Simple with Professional Help

Claiming your cell phone correctly helps reduce your taxes while staying compliant.

At Tiki Tax, we help small business owners and self-employed professionals track business expenses, calculate fair usage percentages, and maximize deductions — without red flags from CRA.