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Work-From-Home Equipment – Taxable vs. Non-Taxable Reimbursements

Danielle Constantine avatar
Written by Danielle Constantine
Updated over a week ago

Reimbursing employees for home office equipment can be done non-taxably in certain situations. The CRA allows for specific work-from-home (WFH) reimbursements to be tax-free, under the right conditions.

What qualifies as non-taxable?

Employers may reimburse up to $500 in total per employee for home office equipment without triggering a taxable benefit, provided that:

  1. The employee is required to work from home; and

  2. The equipment is necessary to perform their job and primarily benefits the employer.

Examples of eligible items:

  • Computer monitors

  • External keyboards or mice

  • Office chairs or desks

This is a lifetime maximum of $500 per employee, not per year or per item. Anything beyond this cap becomes taxable.


What qualifies as taxable?

  • Reimbursements over $500 in total

  • Equipment purchased for personal preference rather than business need

  • Items that are not essential for performing job duties

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