Tax Guide/Self-employed
Deductible business expenses
Updated November 4, 2026
An expense is generally deductible if it is reasonable and you paid it to earn business income.
Common claims include software, advertising, professional fees, phone and internet use, and insurance.
Rules to watch
- Meals and entertainment: generally limited to 50%.
- Personal use: claim only the business part.
- Equipment: computers, furniture and vehicles are usually claimed over time through capital cost allowance (CCA).
- Clothing: everyday clothing that you could wear elsewhere usually does not qualify.
- Pay to family: must be for real work, at a reasonable rate.
Keep every receipt, and be able to explain why each cost relates to the business.