As Canadians begin filing their 2025 income tax returns, new data suggests a significant number of remote and hybrid workers could be missing out on valuable home office tax deductions simply because they do not realize they qualify or are unsure how to claim them.
Research conducted by Employment Hero among a representative sample of Canadian adults shows that while remote work remains firmly embedded in the workforce, awareness of available work-from-home tax claims has not kept pace. In 2025, 26 per cent of Canadians worked from home at least 50 per cent of the time for four consecutive weeks or more. That meets one of the core Canada Revenue Agency eligibility thresholds for claiming home office expenses. Despite this, nearly one-third of those workers are unaware they may be eligible to claim.
Among Canadians who worked remotely in 2025, 31 per cent said they are not aware that they can claim home office expenses on their tax return. Just 51 per cent plan to claim those expenses this year. More than one in three do not plan to claim at all (36 per cent), while 13 per cent remain unsure whether they will submit a claim when filing their 2025 taxes.
The findings indicate a growing disconnect between how Canadians work and their preparedness to navigate the tax implications of remote employment. At a time when household budgets remain under pressure, failing to claim eligible deductions could mean leaving hundreds of dollars unclaimed.
“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, many employees miss out on legitimate tax deductions simply because they don’t realize they qualify or don’t know what paperwork they need. This is not about complexity, it’s about clarity.”
Who can claim work-from-home expenses in Canada?
Under Canada Revenue Agency guidelines, employees may be eligible to claim home office tax deductions if they worked from home more than 50 per cent of the time for at least four consecutive weeks in the year and were required to pay certain expenses directly without full reimbursement. For many employees, this includes a portion of utilities, internet fees and other workspace-related costs.
Despite meeting these criteria, many workers appear hesitant or unaware. The survey data shows that confusion around eligibility remains widespread, particularly among employees who have transitioned into hybrid roles rather than fully remote positions. Some may assume that occasional time in the office disqualifies them, while others may be unclear about what documentation is required to support a claim.
One key document in the process is the T2200 form, formally known as the Declaration of Conditions of Employment. This form, completed and signed by the employer, confirms that an employee was required to work from home and incur certain expenses as part of their role. Without it, many employees cannot proceed with a detailed home office deduction claim.
However, employer support is inconsistent. Six in 10 Canadians who worked from home in 2025 said they received no information or guidance from their employer about claiming home office expenses on their 2025 tax return. Only 40 per cent reported receiving any form of support, and just 23 per cent confirmed receiving a signed T2200 form.
The variation suggests that while remote work is now standard practice across many organizations, tax education and internal processes have not evolved at the same pace. Employees may be expected to navigate the remote work tax return process independently, even when documentation requires employer involvement.
Lee said employers do not need to act as tax advisors, but clearer communication can make a meaningful difference. “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,” he said.
Why employer guidance on T2200 forms and CRA tax claims matters
The research highlights a broader workplace reality. As distributed teams become the norm, traditional information channels have shifted. Payroll updates, policy changes and tax documentation processes that once happened face-to-face now rely on digital systems, email communication or employee self-service platforms. Without proactive guidance, important information can be overlooked.
For small and medium-sized enterprises, the gap represents an opportunity rather than a compliance burden. Providing clear information about CRA requirements, outlining how employees can request a T2200 form and clarifying internal approval processes can reduce uncertainty and improve employee confidence during tax season. In competitive labour markets, practical financial support contributes to overall engagement and retention.
For employees, the takeaway is equally straightforward. Do not assume you are ineligible. Confirm whether your work arrangement meets CRA eligibility requirements for the 2025 tax year. Ask your employer early if you require a T2200 form. Keep detailed records of home office expenses, including utilities, internet and workspace-related costs. Taking these steps before filing can reduce last-minute stress and uncertainty.
The financial implications are not minor. With 26 per cent of Canadians working remotely for extended periods in 2025, even modest individual deductions can add up nationally. In a high-cost environment where many households are carefully managing expenses, claiming eligible work-from-home deductions can provide meaningful relief.
The data also underscores how quickly work patterns have evolved. During the early pandemic years, remote work was framed as temporary. Today, hybrid and remote arrangements are built into long-term workforce strategies. Yet employment systems, including tax awareness and employer communication, are still evolving. “Work has changed dramatically in recent years,” Lee said. “The systems around work, including tax awareness, need to evolve with it.”
As Canadians move through the 2025 tax filing season, the message is clear. Remote work is no longer an exception. It is part of the structure of modern employment in Canada. Ensuring workers understand their eligibility for home office tax deductions and ensuring employers provide basic guidance where required will be key to closing the awareness gap.
For millions of Canadians who worked from kitchen tables, spare bedrooms or home offices last year, tax season may offer more than routine paperwork. It may offer an opportunity to reclaim expenses they are already entitled to claim, provided they know where to start.
These findings are based on a survey conducted by Employment Hero from 12 February to 17 February 2026 among a representative sample of 1,500 Canadian adults, including 397 Canadians who worked from home in 2025, drawn from the Angus Reid Forum.
