Handyman

Tax guide for Canadian self-employed handymen and home repair contractors

Allowable Expenses

• Hardware & materials — Lumber, fixings, tiles, caulk, and repair materials purchased for client jobs (COGS)
• Tools & power tools — Drills, saws, measuring tools, and general hand tools (CCA Class 8 if over C$500)
• Vehicle expenses — Van or truck mileage at CRA rates or actual vehicle costs for travel between jobs
• Business liability insurance — Contractor general liability insurance to protect against property damage claims
• PPE & safety equipment — Safety glasses, gloves, steel-toe boots, and personal protective equipment
• Marketing costs — Kijiji, Facebook Marketplace, business cards, or local advertising to attract clients

Tax Tips

• Keep receipts for all hardware and materials purchases — they are deductible COGS on T2125
• A logbook of business mileage is required by the CRA to claim vehicle costs
• Business liability insurance is fully deductible — essential for home repair work
• Register for GST/HST once your annual revenue exceeds C$30,000

Frequently Asked Questions

Do self-employed handymen need to charge GST/HST in Canada?

Once your annual revenue from handyman services exceeds C$30,000, you must register for a GST/HST account with the CRA and charge GST/HST on your invoices to Canadian clients. Most residential repair services are taxable at the applicable rate.

Can I claim tools as a business expense on my T1 Return?

Yes — tools used exclusively for your handyman business are deductible. Small tools under C$500 can be expensed in full in the year of purchase. Larger tools (over C$500) are depreciated as CCA Class 8 (20% per year) on Form T2125.