Deductions for home office in France: the complete calculation

In short. In Quebec, a self-employed worker who works from home can deduct a portion of their housing expenses: rent or mortgage interest, electricity, heating, home insurance, and maintenance. The core of the calculation is a pro-rata calculation based on square footage: the office space divided by the total living space. A 12 m² office in an 80 m² home yields a 15% deduction: out of €19,700 in annual expenses, approximately €2,955 is deductible. The expense is reported on form T2125 (CRA) and TP-80 (Revenu Québec); employees working remotely use the detailed method, with forms T2200 and TP-64.3. All amounts are in Canadian dollars.

Teleworking has become firmly established in Quebec, and with it comes a question that arises every spring: what portion of my housing costs can I deduct? The answer lies in a simple mechanism, the same one that powers any deductible expense calculator: a pro-rata calculation of square footage, applied to a list of eligible expenses that varies depending on your status. This guide provides the eligibility rules, the step-by-step formula, a table of expenses by situation (owner, tenant, employee), a complete numerical example, and the two pitfalls to be aware of: the loss limit and depreciation. All of this applies to both income levels, since Quebec requires two tax returns: the T1 to the Canada Revenue Agency. Canada (ARC) and TP1 to Revenu Québec.

Who is eligible for the home office deduction?

For a self-employed worker, the CRA and the Canada Revenue Agency apply the same test, with two entry points:

• Your home is your main place of business. More than half of your activities take place there: this is the typical case for the consultant, graphic designer, translator or developer who works from home.
• However, the space is used exclusively for the business AND for meeting clients on a regular and continuous basis. A closed office where you meet with clients every week is acceptable, even if you primarily work elsewhere.

Only one of the two doors is needed. If you are incorporated, the logic changes: the company covers the costs, for example by reimbursing you for reasonable home office expenses, and the arrangement is approved by your accountant. Employees working remotely have their own, stricter rules: we'll come back to that later.

The heart of the calculator: the 4-step formula

All deductible expense calculators are based on the same principle. Here it is, as an accountant applies it to your case:

1. Measure your workspace. The area of ​​the room or corner used for the business, in square meters or square feet: the unit matters little, as long as it is the same everywhere.
2. Divide by the total area of ​​the home. 12 m² of office space in an 80 m² apartment = 15%: this is your basic utilization rate.
3. Adjust if the space has a dual use. A kitchen table that is used for work 8 hours a day, then for family the rest of the time: multiply by 8/24. The 25% of a large common room then becomes 25% × 33.3% = 8.3%.
4. Apply the rate to each eligible expense. Then check the limit: the deduction cannot exceed the company's net income (details below).

An expense that relates solely to the workspace is not prorated: repainting the desk itself, for example, is fully deductible. Conversely, a purely personal expense remains non-deductible regardless of the formula.

Eligible expenses: table by situation

The list of expenses to which your rate applies depends on your status. Here is the reference table for 2026:

Two points to note. Employees whose compensation is partly based on sales are entitled to some additional expenses (home insurance, property taxes): confirm your situation with an accountant. Regarding taxes: if you are registered for VAT (5%) and VAT (9.975%), registration is mandatory for taxable sales exceeding $30,000, a portion of the taxes paid on the business portion of certain expenses (electricity, maintenance, internet) can be recovered as input tax credits and refunds. Residential rent, however, is tax-exempt: there is nothing to recover on it. The rules are complex, so have them reviewed.

Numerical example: the typical case of a freelance tenant

Let's take the profile that comes up constantly among the 15,000+ requests received by Bankeo since 2023: a self-employed tenant, with a closed office of 12 m² in a 4 and a half of 80 m², i.e. a rate of 15%.

At a combined marginal tax rate of approximately 36% (federal plus Quebec, typical for taxable income between $56,000 and $106,000), this $2,955 deduction represents about $1,070 less tax each year on expenses you already pay. The same calculation applies to a homeowner: a 15 m² office in a 150 m² house (10%), with $9,000 in mortgage interest, $4,200 in property and school taxes, $1,200 in insurance, $2,400 in electricity and heating, and $800 in maintenance, yields a deduction of $17,600 × 10% = $1,760. This amount is entered on the designated line of the T2125 for the CRA and the TP-80 for Revenu Québec on both of your tax returns.

Keep proof of every expense: lease, utility bills, tax statements, mortgage statements, and a simple floor plan of the property showing the square footage. These documents should be kept for six years; our guidelines on document retention in Quebec detail what to keep and for how long.

The key point to remember: never a loss, but a carryover without expiration.

The home office deduction has a fixed limit: it cannot create or increase a business loss. In practice, we apply it last, after all other expenses. If your net income before the home office is $1,800 and your calculated expenses are $2,955, you deduct $1,800 this year, and the excess of $1,155 is carried forward to the following year, without an expiry date, as long as the eligibility requirements remain met. A bad year, therefore, does not cause you to lose the deduction; it simply postpones it.

Remote employees: the detailed method, and nothing else

The temporary fixed rate of €2 per day, created during the pandemic, no longer applies from the 2023 tax year onwards. For your 2025 taxes filed in 2026, an employee working remotely must use the detailed method, with supporting documents:

• Conditions: having worked from home more than 50% of the time for a period of at least four consecutive weeks, under a teleworking agreement with the employer (even verbal).
• Employer forms: the T2200 for federal purposes and the TP-64.3 for Quebec purposes, signed by the employer. Without them, no deduction is possible.
• Complaint: the T777 with the T1 (line 22900) and the TP-59 with the TP1: again, both levels.
• Allowed expenses: portion of rent, electricity, heating, a reasonable portion of internet access, minor maintenance, and supplies. An employee cannot deduct mortgage interest, property taxes, or home insurance.

The pro rata is calculated exactly as for a self-employed person: area of ​​the space divided by the area of ​​the home, multiplied by the hours of use for work if the space is shared.

How much is it worth, and how much does a helping hand cost?

A home office is just one of the deductions in a self-employed business plan: vehicle, mobile phone, training, professional fees, and social security contributions follow the same logic of expense reports and pro-rata calculations. This is exactly the kind of optimization where an accountant pays for themselves. Our guide on the cost of an accountant for self-employed individuals in Quebec quantifies the cost/benefit ratio, and our 2026 tax season checklist provides the timeline for preparing on time.

Côté budget, l'accompagnement comptable complet d'une entreprise coûte environ 3 000 $ par année en médiane, la plupart des mandats se situant entre 500 $ et 6 000 $ selon le profil et les services. Basé sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues ; le Baromètre Bankeo détaille ces fourchettes service par service. Une déclaration de travailleur autonome seule coûte évidemment moins cher qu'un mandat annuel complet.

Frequently asked questions

Who can deduct home office expenses?

A self-employed individual whose home is their primary place of business, or whose space is exclusively used for business and for meeting clients regularly and continuously, can claim this tax credit. An employee can also claim this credit if they have worked remotely more than 50% of the time for at least four consecutive weeks and their employer signs forms T2200 and TP-64.3. If you are incorporated, the company will cover the costs: confirm the details with your accountant.

How do I calculate the percentage of my home used for work?

Divide the workspace by the total living area: a 12 m² office in an 80 m² home accounts for 15%. If the space is also used for personal purposes, multiply by the fraction of hours it's used for business: a common room used 8 hours a day accounts for 8/24, or one-third of the area. This rate is then applied to each eligible expense.

What expenses can a self-employed person deduct for their home office?

A tenant deducts their share of the rent, electricity, heating, home insurance, minor maintenance, and internet access. A homeowner deducts their share of the mortgage interest (never the principal), property and school taxes, insurance, electricity, heating, and maintenance. Depreciation of the residence is permitted but rarely recommended, as it reduces the principal residence exemption upon resale. All expenses are reported on form T2125 to the CRA and on form TP-80 to Revenu Québec.

Can an employee working remotely still deduct their expenses in 2026?

Yes, but only using the detailed method: the temporary fixed rate of €2 per day no longer applies as of the 2023 tax year. You must have worked remotely more than 50% of the time for at least four consecutive weeks, obtain the T2200 (federal) and TP-64.3 (Quebec) forms signed by your employer, and then claim using the T777 and TP-59 forms. An employee can deduct their share of rent, electricity, heating, and internet costs, but not mortgage interest or property taxes.

Can the home office deduction create a loss?

No. The deduction is limited to the company's net profit: it can reduce it to zero, but never below. However, any excess is not lost: it can be carried forward to subsequent years, without an expiration date, as long as the eligibility conditions remain met. Keep your supporting documents for 6 years: leases, electricity bills, tax statements, and mortgage statements.

How much does an accountant cost to optimize these deductions?

L'accompagnement comptable complet d'une entreprise coûte environ 3 000 $ par année en médiane, la plupart des mandats se situant entre 500 $ et 6 000 $. C'est basé sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues. Une déclaration de travailleur autonome seule coûte moins cher ; le Baromètre Bankeo détaille les fourchettes par service.

Sources

1. Revenu Québec, Self-employed workers;
2. Revenu Québec Business Space
3. Revenue Agency of the | Canada official portal
4. Quebec CPA Order