Form T777, Statement of Employment Expenses, is the CRA form an employee uses to work out the employment expenses they can deduct, which then go on line 22900 of the income tax and benefit return. You can only use it if your employer requires you to pay those expenses, and your employer has to complete Form T2200 to confirm it. You include the T777 with a paper return; the T2200 stays in your records.
It's for employees, not the self-employed, who use Guide T4002 instead. Everything below comes from the CRA's T777 form page and Guide T4044, Employment Expenses, for 2025, checked in October 2026.
Before you start: the two rules that decide everything
- Your contract of employment has to require you to pay the expenses, and your employer has to sign Form T2200, Declaration of Conditions of Employment. With more than one employer, each completes its own T2200.
- Travel to and from work, and most tools and clothing, are personal expenses. You can't deduct them on the T777.
You don't send the T2200 with your return. Keep it in case the CRA asks to see it.
What you can claim, in the order the T777 lists it
| Expense | Salaried employee | Commission employee |
|---|---|---|
| Accounting and legal fees | Yes, legal fees to collect or establish a right to salary or wages | Yes |
| Motor vehicle expenses, including CCA | Yes, if the conditions are met | Yes |
| Travelling expenses | Yes, if the conditions are met | Yes |
| Advertising and promotion | No | Yes |
| Food, beverages and entertainment | Food and beverages only on qualifying travel, at 50% | Yes, subject to the 50% limit |
| Parking and supplies | Yes | Yes |
| Work-space-in-the-home | Electricity, heating, maintenance; not property tax or insurance | Also property taxes and home insurance |
The work-space-in-the-home rules
To claim home office costs you need to meet one of two conditions: you worked more than 50% of the time from home for at least four consecutive weeks, or the space is used only to earn employment income and regularly to meet clients or others for work.
- Use a reasonable split, such as the work space area divided by the total finished area of the home, including hallways, bathrooms and kitchens.
- Renters deduct the work-space share of rent and any related maintenance.
- Nobody can deduct mortgage interest or capital cost allowance on the home. Salaried employees also can't deduct property taxes or home insurance; commission employees can.
- Commission employees can also include reasonable monthly home internet fees; the guide lists that line in the commission chapter.
- The claim can't create or increase a loss from employment. Anything you can't use carries forward to the next year, as long as you're reporting income from the same employer.
The commission limit, and the option that can beat it
Commission employees have a cap: apart from interest and CCA on a vehicle, their expenses can't be more than the commissions they received in the year. Guide T4044 gives an example worth reading, as of October 2026:
| Item | Amount |
|---|---|
| Salary | $45,000 |
| Commissions | $5,000 |
| Advertising and promotion | $1,000 |
| Travelling expenses | $6,000 |
| Capital cost allowance | $1,500 |
| Interest on car loan | $500 |
| Claim as a commission employee | $7,000 |
| Claim as a salaried employee instead | $8,000 |
Because the commission claim is limited to $5,000 plus the CCA and interest, switching to the salaried method gives a bigger claim: the $6,000 of travel plus the $1,500 and $500, though the advertising is lost. If your commission expenses are higher than your commissions, run both.
Vehicle expenses and the 2025 limits
To deduct vehicle costs as a salaried employee you must meet all four conditions in Guide T4044: you were normally required to work away from your employer's place of business or in different places, your contract required you to pay your own vehicle costs, you didn't get a non-taxable allowance, and you keep a signed T2200. Parking isn't part of vehicle expenses; it goes on its own line of the T777.
The guide's New for 2025 section sets the limits, as of October 2026: the maximum capital cost of each vehicle in Class 10.1 is $38,000 before tax, deductible leasing costs rise from $1,050 to $1,100 a month for new leases entered into on or after January 1, 2025, and the maximum interest deduction stays at $350 a month for new car loans.
Keep a record for each vehicle showing the total kilometres driven and the kilometres driven for work in the year, along with receipts, invoices and credit card statements. Those are the records the CRA lists in Chapter 1.
Large claims can justify lower withholding, and our guide to asking for less tax at source explains the request.
How to complete and file it
- Get a signed T2200 from each employer before you file.
- Download the T777 for the right year from the CRA page and fill it in with Adobe Reader, as the CRA asks, rather than in the browser.
- Enter each expense in the order the form lists it, using receipts and logs you keep for your records.
- Work out the work-space-in-the-home percentage and any carryforward from last year.
- Put the total on line 22900 of your return, and include the T777 if you file on paper.
- If your employer is a GST/HST registrant, check whether you can also claim the employee GST/HST rebate on Form GST370.
The employer's side of all this is covered in our guide to Form T2200, and your income from that job is on your T4 slip.
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The verdict
If your employer makes you pay for things to do your job, the T777 is worth an hour. Get the T2200 signed first, keep receipts, and if you're on commission, test the salaried method too. If you simply chose to work from home without your employer requiring it, or your costs were reimbursed, the T777 isn't for you.
In the US the rules for employee expenses are far narrower, which our guide to deducting employee expenses in the US explains.
Frequently asked questions
What is Form T777 used for?
To calculate the employment expenses an employee can deduct on line 22900 of the income tax and benefit return.
Do I need a T2200 to claim T777 expenses?
Yes. Your employer has to complete Form T2200. You keep it in your records instead of sending it with your return.
Can I claim home office expenses on the T777?
Yes, if you worked more than 50% of the time from home for at least four consecutive weeks, or the space is used only for work and regularly for meeting people for your job.
Can salaried employees deduct property taxes on a home office?
No. Guide T4044 says salaried employees can't deduct mortgage interest, property taxes, home insurance or capital cost allowance. Commission employees can deduct property taxes and home insurance.
Is there a limit on commission employee expenses?
Yes. Apart from vehicle interest and CCA, they can't be more than the commissions received in the year, unless you claim as a salaried employee instead.
Can self-employed people use Form T777?
No. The CRA points self-employed people to Guide T4002 instead.
