Electrician

Tax guide for Canadian self-employed electricians

Allowable Expenses

• Electrical tools & test equipment — Multimeters, cable strippers, conduit benders (CCA Class 8)
• Vehicle costs — Van or truck — business-use proportion of all vehicle costs
• Materials (COGS) — Cable, conduit, connectors, switches — materials per client job
• Electrical contractor licence — Annual Electrical Contractor Registration Agency (ECRA) or provincial licence
• Safety & PPE — Arc flash PPE, voltage-rated gloves, safety boots, hard hat
• Vehicle expenses — Truck or van mileage or actual costs for travel between residential and commercial sites

Tax Tips

• ECRA or provincial electrical contractor licence fees are deductible professional dues
• Track materials per job as cost of goods sold for accurate profit reporting
• High-value test equipment (clamp meters, oscilloscopes) is CCA Class 8 (20%/year)
• Safety clothing and PPE required for electrical work are deductible safety equipment

Frequently Asked Questions

Are ECRA licence fees deductible as a self-employed electrician?

Yes — Electrical Contractor Registration Agency (ECRA) and other provincial electrical contractor licence fees are deductible as professional licence dues on Form T2125, as they are required to legally operate as an electrical contractor.