Want to find out how to claim your Coworking Tax Deduction under business expenses? We all love a good tax break. Whether you’re a self-employed creative, a small business owner, or a digital nomad jumping from one hot desk to another, we know that every dollar matters.
The big question we hear all the time is this: Can you write off coworking space in Canada? The short answer? Yes. But as with everything involving the Canada Revenue Agency (CRA), there are some rules to follow.
We’ve spent years helping professionals like you find the perfect spot to get work done, whether it’s a cozy private office in Grimsby or a hot desk in bustling Hamilton. And because we operate across Ontario in places like Burlington, Niagara Falls, and St. Catharines, we’ve learned a thing or two about how coworking fits into your tax strategy.
If you're wondering why we are the ones writing this article? Well, we are the coworking space you'll most likely claim tax benefits from later. Just teasing you, but regardless of whether you are here to find out whether the space you rent to work is considered a legitimate business expense, keep reading.
We're diving deep into how to make sure you’re getting the most out of your coworking tax deduction, legally and efficiently.
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Why Coworking Spaces Are on the Rise in Ontario
It’s no secret, work culture has shifted. The rise of remote work, side hustles, and entrepreneurial spirit has turned coworking into the new normal, especially here in Ontario. Traditional office leases? Outdated. Flexibility, community, and plug-and-play amenities? That’s what people want.
Here’s what we’re seeing across our coworking locations:
Professionals are ditching long-term office commitments for flexible desk rentals.
Entrepreneurs are scaling teams faster with access to fully serviced private offices.
Remote workers are opting out of noisy cafés for meeting-ready spaces.
Ontario has become a hub for this movement. From St. Catharines to Burlington, professionals are embracing coworking for the work-life balance and networking potential it brings.
And here’s the kicker: when you choose a properly structured coworking plan, many of those costs can be deducted on your taxes. But more on that in a moment.
Understanding What a Coworking Space Is
So, what exactly qualifies as a coworking space?
We define it as a shared, professionally maintained workspace that offers desks, offices, meeting rooms, and sometimes even event spaces—on flexible terms. You don’t have to buy furniture or set up Wi-Fi; it’s all ready when you walk in.
Think of it like a gym membership for your business. You pay to access a professionally curated space that enhances your productivity. At Bright Workspaces, for instance, we offer:
Private offices for teams and solopreneurs
Hot desks for on-the-go flexibility
Virtual mail services for businesses without physical addresses
Boardrooms and training rooms for client meetings or team sessions
As long as you're using the space for income-earning purposes, the CRA may allow you to claim it as a legitimate business expense.
Is a Coworking Space Tax Deductible in Canada?
Yes, and this is where things get exciting. In Canada, the CRA allows individuals and businesses to deduct reasonable expenses incurred for earning income. That includes workspace rental, which applies to coworking spaces if they meet specific criteria.
Here’s the catch: you must be using the space for business purposes. Whether you're taking client calls, holding team meetings, or creating products or services, that space needs to directly relate to income generation.
The coworking tax deduction is treated similarly to how you'd deduct a portion of your home office, but with a bit more flexibility and often fewer complications. The key is proving that your use of the coworking space is essential to your business activities.
And yes, if you’re operating in Ontario and paying for coworking in Hamilton, Burlington, or even St. Catharines, you could absolutely be eligible for this deduction.
What the CRA Says About Coworking Deductions
Let’s break down the Canada Revenue Agency’s position.
According to CRA guidelines, business expenses must be:
Incurred to earn business income
Reasonable in amount
Supported by proper documentation
In the context of coworking:
Monthly membership fees? Deductible.
Hot desk rentals? Deductible.
Private office leases inside a coworking hub? Also deductible.
You must keep receipts, contracts, and invoices as proof. And if you’re combining business with personal use (say, using the space part-time), you’ll need to prorate the expenses accordingly.
Quick tip? Avoid trying to deduct extravagant spaces that don’t align with your business needs—it may trigger an audit. Stick to practical and reasonable expenses that directly support your work.
Common Expenses That Can Be Written Off
Let’s take a look at the kind of coworking-related costs you might be able to write off:
Monthly coworking membership fees
Meeting or boardroom rentals for client presentations
Virtual office services like business mailing addresses
High-speed internet fees included in your coworking plan
Office supplies purchased through or used in the coworking space
Access to printers, scanners, and other shared equipment
If these expenses are directly related to how you earn income, they’re fair game for deductions. Just remember—keep records and ensure the services match your business activities.
Who Can Claim a Coworking Tax Deduction?
Not everyone qualifies, but many do. The CRA generally allows coworking deductions for:
Self-employed freelancers and contractors
Small business owners
Startup founders
Digital nomads and remote workers who pay for workspaces themselves
If your employer covers the coworking fees, you can’t claim it personally. But if you’re footing the bill to maintain a professional work environment, and you’re earning self-employment or business income, you’re likely in the clear.
Freelancers and Digital Nomads: Claiming Coworking Expenses
We get it—you don’t have a traditional office. Maybe you’re bouncing between Niagara Falls and Hamilton with just your laptop. Coworking offers that perfect home base, and yes, you can usually write off those costs.
Freelancers love coworking because:
It boosts productivity
It adds credibility (you’re not meeting clients in cafés)
It provides a business address for invoicing
If you’re using our virtual mail service or renting space in any of our Ontario locations, those costs can typically be deducted as operational business expenses—just make sure you document everything.
Small Business Owners: Writing Off Coworking Spaces
Running a small team? Whether you’ve got two people or twenty, coworking can be a smarter, more flexible alternative to traditional office leases. And the tax benefits are real.
Instead of dealing with long-term rental contracts, you can write off:
Team office rentals
Training and event room bookings
Mail handling and reception services
Daily hot desk access for part-time staff
If your team is spread out across Ontario, using different coworking locations in cities like Burlington or St. Catharines, you can allocate and deduct costs accordingly.
Remote Employees: Can You Deduct Coworking Space?
If you're an employee working remotely, but not self-employed, your ability to deduct coworking space is more limited. The CRA has strict rules here. You’d need:
A T2200 form from your employer
A space used exclusively and regularly for work
Proof that your employer requires you to use the space
That said, in most cases, coworking spaces are better suited for freelancers and business owners when it comes to tax deductions.
Types of Coworking Services That May Qualify
Here are just a few services you might be using that could be deductible:
Private Offices: Ideal for teams or full-time entrepreneurs.
Hot Desks: Perfect for flexible professionals who travel.
Meeting Rooms: Booked for client presentations or brainstorming sessions.
Virtual Mail Services: Establish a business address without needing a physical presence.
Boardroom Rentals: Great for quarterly reviews or team strategy sessions.
Just make sure your usage of each ties back to your income generation. That’s the golden rule with the CRA.
Important Documentation for Tax Time
You know the saying, if it’s not documented, it didn’t happen. That couldn’t be truer when dealing with the CRA. If you’re planning to claim coworking expenses on your tax return, you’ve got to keep your paperwork in order.
Here’s what we always recommend keeping handy:
Receipts and invoices from your coworking provider
Contracts or membership agreements outlining terms of use
Bank or credit card statements that show payments made
Proof of business use, such as client meetings held at the space
Calendar logs or records of how often and when you used the space
Organizing this ahead of time saves you massive headaches down the road, especially in the event of an audit. Bonus tip? Create a dedicated digital folder each month for receipts and label each file clearly. Trust us—your future self will thank you.
How to Maximize Your Coworking Tax Deduction
If you’re already paying for a coworking space, you might as well get the most out of the deduction, right? Here’s how we suggest you do it:
Use the space consistently – The more frequently you use it for work, the stronger your case for a full deduction.
Bundle services – Consider plans that include internet, mail, and meeting rooms. All-inclusive packages often mean more deductible services.
Prorate shared use – If you use the space partly for personal use, calculate the business-use percentage and claim accordingly.
Include associated costs – Don’t forget related business expenses like transportation to and from the space, or meals during long workdays (some conditions apply).
Track mileage – If your coworking space is a fair drive, you may be able to write off a portion of your vehicle expenses when commuting for business.
The more accurately and fully you account for how your workspace supports your income, the better positioned you are at tax time.
Common Mistakes to Avoid When Filing
Unfortunately, many people miss out on coworking tax deductions—or worse, make costly mistakes. Here are some of the biggest pitfalls we’ve seen and how to avoid them:
Not keeping proper records – Without receipts, it’s your word against CRA.
Mixing personal and business use without documentation – Be ready to show business usage with calendar logs or client meetings.
Assuming all coworking expenses are deductible – Some services (like food or social events) might not qualify.
Claiming deductions without self-employment income – If you're an employee, you have stricter limits.
Overstating use – Claiming 100 percent of a cost when you only use it half the time for business is a red flag.
Stick to honest, well-documented claims. That way, even if the CRA comes calling, you’ll be fully covered.
Our Top 5 Coworking Locations in Ontario
We’ve carefully crafted inspiring, flexible, and fully-equipped coworking hubs in Ontario’s most vibrant communities. If you're looking for a workspace that fits your lifestyle, here's our top 5 picks for digital nomads and professionals:
1. Grimsby
Nestled between the lake and the escarpment, our Grimsby location offers scenic inspiration with all the perks of a full-service workspace. It's ideal for freelancers looking to stay grounded while still close to Toronto and Niagara.
2. Hamilton
Fast-growing and filled with entrepreneurial spirit, Hamilton’s tech and creative scene makes this a hotspot for remote workers. Our Hamilton coworking space offers everything from hot desks to private team rooms, perfect for startups or small teams.
3. Burlington
Strategically located between Toronto and Hamilton, our Burlington space is perfect for commuters or those who want an upscale yet relaxed work environment. With fast Wi-Fi, soundproof boardrooms, and lounge areas, it’s as functional as it is stylish.
4. Niagara Falls
Yes, you can work near the falls. Our Niagara Falls coworking hub brings vacation vibes and serious productivity together. Perfect for remote workers who want an escape from the city without sacrificing professional space.
5. St. Catharines
With a growing downtown and strong community of creatives and entrepreneurs, St. Catharines is a gem for flexible workspace seekers. Our location is walkable, central, and loaded with all the essentials like virtual mail, meeting rooms, and fast internet.
Wherever you are in Ontario, we’ve got a spot that fits how you work—and yes, it’s likely deductible.
Why Workspaces Like Ours Are Ideal for Professionals
We built our coworking spaces to meet more than just the need for a desk. We designed environments that inspire growth, focus, and connection—without the overhead of a traditional office lease.
Here’s what sets us apart:
Flexible terms: No long-term commitments, just what you need, when you need it
Professional-grade amenities: High-speed Wi-Fi, boardrooms, mail handling, and more
Community support: Connect with like-minded professionals across industries
Locations that make sense: Centrally located in the GTA and surrounding areas like Niagara and Hamilton
When you choose our coworking spaces, you’re choosing a smarter way to work, and one that could save you money when tax season rolls around.
Final Thoughts on Claiming Your Coworking Tax Deduction in Canada
So, can you write off coworking space in Canada? Absolutely, but you need to do it right. Whether you’re building your business from a desk in Hamilton or hosting clients in a meeting room in Burlington, your coworking expenses could be tax-deductible when used for business.
Just remember: keep records, use the space consistently for income-earning activities, and talk to your accountant if you’re ever unsure. We’re proud to offer coworking environments across Ontario that help professionals grow—and help them save on taxes too.
We operate coworking locations across Ontario, offering flexible private offices, team rooms, mail services, and hot desks that support digital nomads, startups, and growing businesses alike.
FAQs
1. Can I claim coworking space as a business expense in Canada?
Yes. If you use coworking space to earn income—such as freelancing or running a business—you can claim it as a business expense on your taxes, as long as it’s well-documented.
2. What documents do I need to deduct coworking expenses?
You’ll need receipts or invoices, proof of payment, and possibly usage logs to show the space was used for business purposes. Keep everything organized and consistent.
3. Are virtual office services tax-deductible in Canada?
Yes. If you're using a virtual office address for your business operations, that cost can be claimed as a deductible expense, provided it's tied to income generation.
4. Can remote employees claim coworking spaces?
Only if your employer requires it and provides a T2200 form stating the condition of employment. Otherwise, remote employees typically can't claim coworking space costs.
5. Are all coworking services eligible for deduction?
Not necessarily. Services like business mail, desks, and meeting rooms often qualify, but things like refreshments or social events might not. Always check what's business-related.