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Employed tradespeople can deduct the cost of new tools they must supply for the job, up to $1,000, on line 22900 of the return. On the CRA page for the 2025 tax year, the deduction is the lesser of $1,000 and the amount by which your eligible tool costs exceed $1,471. Your employer has to certify the tools on Form T2200. Apprentice vehicle mechanics have a separate, larger deduction.
Who can claim the tradesperson’s tools deduction?
The deduction is for an employed tradesperson who bought eligible tools in the year to earn employment income. The Canada Revenue Agency page for line 22900, other employment expenses does not define the word tradesperson, so the working test is the paperwork: your employer must certify that you had to provide the tools as a condition of the job. The page I read on 31 October 2026 is the 2025 tax year version. The 2026 version has not been published yet (checked 31 October 2026), so the limits below are the 2025 ones.
How much can I deduct?
The formula is the lesser of $1,000 and A minus $1,471. A is the lesser of two things: the total cost of eligible tools you bought in the year, and your employment income as a tradesperson. Add any Apprenticeship Incentive Grant and Apprenticeship Completion Grant you received, and subtract any grant overpayment you repaid. If A is $1,471 or less, there is no deduction at all.
| Case (2025 tax year) | A | A minus $1,471 | Deduction |
|---|---|---|---|
| Tools cost $1,200 | $1,200 | Negative | None |
| Tools cost $1,800 | $1,800 | $329 | $329 |
| Tools cost $2,500, trade employment income $45,000 (CRA’s own example) | $2,500 | $1,029 | $1,000 |
| Tools cost $5,000, trade employment income only $2,200 | $2,200 | $729 | $729 |
The $1,471 also appears in the CRA’s apprentice formula as the maximum Canada employment amount. Because it sits inside the formula, the first $1,471 of tool spending never produces a deduction on its own, and only spending above it counts until you reach the $1,000 cap.
Which tools count?
The CRA lists three conditions. A tool, including associated equipment such as a toolbox, must meet all of them.
- You bought it to use in your job as a tradesperson, and it had not been used for any purpose before you bought it.
- Your employer certified that it is necessary for you to provide it as a condition of your job and for use in that job.
- It is not an electronic communication device, such as a cell phone, or electronic data processing equipment. The exception is equipment used only to measure, locate or calculate.
The cost you deduct includes any GST/HST you paid. Used tools bought second-hand do not meet the first condition.
What does my employer sign, and what do I keep?
Ask your employer to complete question 12 of Part C of Form T2200, which certifies that you bought and provided the tools as a condition of employment. Attach a list of the tools and the receipts to the T2200. Do not send any of it with your return, but keep it in case the CRA asks. Our article on Form T2200 explains the rest of that form.
| Step | Where |
|---|---|
| Employer certifies the tools | Form T2200, Part C, question 12 |
| Work out the claim | Form T777, Tradesperson’s tools expenses line (1770) |
| Enter the total | Line 22900 of the return, from the Total expenses line of Form T777 |
| Possible GST/HST rebate | Form GST370, then line 45700 |
| Keep records | At least six years: T2200, tool list, receipts |
Receipts should show the purchase date, the seller’s name and address, your name and address, a full description of the item and the GST/HST information. The CRA page on the employee and partner GST/HST rebate says employees who deducted expenses on line 22900 may be eligible for a rebate of GST/HST paid, if the employer is a GST/HST registrant (not a listed financial institution).
What is the apprentice vehicle mechanic tools deduction?
An employed apprentice mechanic registered in a program leading to a licence to repair self-propelled motorized vehicles can deduct more. The CRA guide T4044, Employment Expenses gives the formula (A minus B) plus C. A is the cost of eligible tools bought in the year. B is the lesser of A and the greater of two amounts: $1,000 plus the Canada employment amount (up to $1,471), or 5% of apprentice employment income plus grants, less any tradesperson’s deduction claimed. C is any unclaimed carryforward from the year before. Your employer certifies the tools in question 13 of Part C of Form T2200.
The CRA’s example has A at $4,500, B at $2,471 and C at $2,000, which gives a deduction of $4,029. Unused amounts carry forward against any income in a later year. Someone who first becomes an eligible apprentice mechanic in 2025 can also include tools bought in the last three months of 2024.
What is the tax saving on a $1,000 claim?
This is our calculation, not a CRA figure, and it uses the 2026 tax rules in this site’s calculator engine, since 2026 rates are the ones we have. Take an Ontario employee earning $55,000 who claims a $1,000 tools deduction. Tax in the engine falls from $7,177.97 to $6,963.11, a saving of $214.85. The saving is a fraction of the deduction, not the whole $1,000, because a deduction only lowers taxable income. You can try your own income in our marginal tax rate calculator.
If you later sell a tool, the part of the sale price above its adjusted cost goes into income, and a loss on the sale is not deductible. Our general guide to tax deductions in Canada and the sibling article on union and professional dues cover the other common employee claims.
What could change?
The Canada employment amount feeds the formula, so the $1,471 will move when the CRA publishes the 2026 figures. The 2026 version of the page has not been published yet (checked 31 October 2026). See our 2026 versus 2027 tax numbers page for what is already confirmed.
Where does this information come from?
Rules and figures come from the Canada Revenue Agency page for line 22900 (other employment expenses, 2025 tax year), the CRA guide T4044 Employment Expenses and the CRA page on the employee and partner GST/HST rebate, all read on 31 October 2026. Checked on 31 October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
How much can a tradesperson deduct for tools?
For the 2025 tax year, an employed tradesperson can deduct the lesser of $1,000 and the amount by which eligible tool costs (or trade employment income, if lower) exceed $1,471. Spending of $1,471 or less produces no deduction.
Do I need a T2200 to claim the tools deduction?
Yes. Your employer must complete question 12 of Part C of Form T2200 to certify that you bought and provided the tools as a condition of employment. You keep the T2200, tool list and receipts, and you do not send them with your return.
Can I deduct a cell phone or laptop as a tradesperson?
No, with one narrow exception. Electronic communication devices such as cell phones, and electronic data processing equipment, do not qualify. Equipment used only for measuring, locating or calculating can qualify if it meets the other tool conditions.
Where do I claim the tradesperson tools deduction?
Work out the claim on Form T777, on the Tradesperson's tools expenses line, then enter the total from the Total expenses line of that form on line 22900 of your return. Keep the supporting papers for at least six years.
Is there a different deduction for apprentice mechanics?
Yes. Employed apprentice mechanics in a program leading to a licence to repair motorized vehicles use the formula (A minus B) plus C, with the employer certifying the tools in question 13 of Part C of Form T2200. Unused amounts carry forward.
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