Self-Employed in Canada? Here’s How to Maximize Your Tax Refund in 2025
Being self-employed in Canada comes with freedom—but also the challenge of managing your own taxes. The good news? You have access to a range of deductions, credits, and smart strategies that can seriously boost your refund (or reduce what you owe).
If you’re a freelancer, contractor, small business owner, or gig worker, here’s your 2025 guide to making the most of tax season.
Claim All Business Expense
You’re allowed to deduct any reasonable expense incurred to earn income. In 2025, that includes:
- Home office costs (portion of rent, utilities, internet, repairs)
- Phone and tech equipment
- Marketing and website fees
- Software subscriptions (accounting, design, editing tools, etc.)
- Travel, meals (50%), and vehicle use (if business-related)
Maximize the Home Office Deduction
If you work from home, you may qualify to deduct a portion of household expenses based on the workspace percentage of your home.
New in 2025: CRA has updated its guidelines to make this deduction more flexible, especially for hybrid workers and part-time entrepreneurs. Include a portion of:
- Mortgage interest or rent
- Utilities
- Property taxes
- Maintenance & insurance
Vehicle Expenses
Use your personal vehicle for business? You can claim fuel, insurance, repairs, lease payments, and depreciation—based on the percentage of business use.
✅ Keep a mileage log (even an app like MileIQ or Driversnote will do).
Contribute to Your RRSP (and Don’t Forget the FHSA)
As a self-employed person, you don’t have a workplace pension—but you do have powerful tax tools:
- RRSP contributions lower your taxable income and defer taxes
- FHSA (First Home Savings Account) is great if you’re saving for a first home—it’s tax-deductible and withdrawals are tax-free
Use Capital Cost Allowance (CCA) for Equipment
Bought a new laptop, camera, or machinery? Don’t forget to depreciate it over time using the CRA’s CCA system.
Even partial-year usage counts. Claim it for:
- Office Furniture
- Computer Equipment
- Business Vehicles
- Tools & Machinery
Claim Education and Skill-Building
Took a course or certification to grow your business? That’s a deductible expense—especially if it improves your current income potential. Online courses, coaching, webinars, or trade certifications all qualify.
Consider Incorporation
If your freelance or side hustle income is growing fast, incorporating could save you big on taxes through income splitting, tax deferral, and business write-offs.
The information provided is for educational/entertainment purposes only. Actual information may vary, please consult our office for further details. Got a question? Feel free to reach us at helpdesk@assentt.com.
