Budget 2022 included a historic win for Canada’s skilled trades workers. After over two decades of advocacy by CBTU and our partners, tax fairness is now a reality for tradespeople across Canada.
The Labour Mobility Tax Deduction for Tradespeople provides tax recognition on up to $4,000 per year in eligible travel and temporary relocation expenses to eligible tradespersons and apprentices. This tax deduction applies retroactively to eligible out-of-pocket long-distance travel receipts from January 1, 2022. If you’re eligible, start saving your receipts now!
These materials are for information purposes only. Please comply with the Canada Revenue Agency’s policies and for further information consult the CRA or a professional accountant.
What is the tax deduction?
The Labour Mobility Deduction for Tradespeople is a tax deduction that allows skilled trades workers tax recognition on up to $4,000 annually for eligible out-of-pocket expenses that are not covered by an employer when temporarily relocating for work. For eligible tradespeople and eligible expenses, this new tax deduction enables workers to claim eligible expenses which will lower your taxable income and therefore reduce the amount of tax you have to pay on your income.
Who is eligible?
Skilled tradespersons and apprentices who relocate for at least 36 hours to a temporary lodging that is located at least 150km away from their primary residence to work on a construction site are eligible to use this deduction.
How do I use the deduction?
Save your eligible receipts and file the claims – or have your accountant file the claims – along with the rest of your tax return at the end of the fiscal year. If you’re uncertain about which expenses are eligible please consult our materials, wait for further interpretation from the CRA, or consultant your accountant.
When does this come into effect?
All eligible expenses retroactive to January 1st, 2022 can be claimed through the Labour Mobility Deduction.
CBTU will continue to monitor for updates from the CRA on this tax deduction.
Help make skilled trades workers across Canada aware of this policy change by sharing our materials.