You clean homes for your own clients, set your own schedule, and get paid directly, often in cash or e-transfer. That makes you self-employed, and the CRA expects every dollar reported, cash included. The upside: your supplies, the business share of your car costs, and the people you hire to help are all deductions.
Your income goes on Form T2125, and your costs come off the top.
Yes, the cash counts
This is the rule cleaners most often get wrong. “It was cash” is not an exemption. All of your cleaning income is reportable, regardless of how you’re paid, with no minimum. The CRA matches bank deposits and e-transfers; regular money in with nothing on a return is an audit flag. Report it, deduct against it, and you’re fine.
No tax is withheld, you pay both halves of CPP (11.9% of net income above $3,500, up to the yearly maximum pensionable earnings, plus 8% CPP2 on higher incomes), and a 20-25% set-aside keeps April calm.
What house cleaners can deduct
| Expense | Deductible? | Notes |
|---|---|---|
| Cleaning supplies | Yes | Products, cloths, bags, gloves. Deduct as you buy |
| Equipment | Yes | Durable equipment may be capital property; supplies used up in the work are current expenses |
| Vehicle costs | Business-use % | Gas, insurance, repairs, CCA × your business-km %; keep a log |
| Helpers / subcontractors | Yes | Paying someone to clean with you is deductible |
| Insurance & bonding | Yes | Liability insurance and bonding for client trust |
| Phone | Business portion | Booking and scheduling |
| Booking / payment software | Yes | Scheduling apps, payment processing fees |
| Marketing | Yes | Flyers, online ads, your website |
| Laundry of work supplies | Yes | Washing cloths and microfibre you reuse |
Vehicle costs are a big one for cleaners running between houses. It’s not a per-km rate: you add up your actual car costs (gas, insurance, repairs, CCA) and claim your business-km percentage. Keep a log (date, destination, kilometres, purpose) because the CRA denies vehicle claims without one. Trips between clients are business. If you run the business from home and have no other workplace, the drive to your first job is generally business too, not commuting. Our vehicle expenses guide explains.
Paying helpers
Bring someone on to clean with you? What you pay them is a deductible subcontractor cost. Get an invoice, or at least a clear record of who you paid and when. But watch the line: if you control their hours, supply everything, and they work only for you, the CRA may call them your employee, which means CPP and EI obligations. Our hiring subcontractors guide covers how to stay onside.
Equipment versus supplies
Cleaning products and other supplies used up in the work are current expenses. A commercial vacuum, carpet machine, or other durable equipment may be capital property deducted over time through CCA. Classify the item based on what it is and how long it will be used, not a blanket dollar cutoff.
GST/HST: watch the $30,000 line
Go over $30,000 in a single calendar quarter and there’s no grace period: you’re a registrant from the sale that puts you over, so you charge GST/HST on it and register within 29 days. Go over $30,000 across four consecutive quarters and you stay a small supplier until the end of the month after that quarter, then register within 29 days. A full-time cleaner with a steady book can reach it. Residential cleaning is generally taxable, so once registered you charge GST/HST and claim back the GST/HST on supplies and equipment. The Quick Method often suits cleaners well since overhead is modest.
Deadlines
| Deadline | What’s due |
|---|---|
| April 30 | Tax balance owing (payment) |
| June 15 | T1 + T2125 filing (self-employed) |
Let Accountly track it between jobs
Accountly mileage tracking records trips between clients. You can also enter cash and e-transfer income and capture supply receipts, then review the records against your source documents. Monitor the $30,000 GST/HST tests yourself.
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Frequently asked questions
Do I have to report cash income from cleaning houses?
Yes. All cleaning income is reportable on a T2125 regardless of how you’re paid; there’s no minimum, and the CRA matches bank deposits and e-transfers.
Can I deduct driving between cleaning jobs?
Yes, as vehicle costs. You claim your actual car costs (gas, insurance, repairs, CCA) times your business-km percentage, backed by a mileage log. Trips between clients are business kilometres. If you run the business from home with no other workplace, the drive to your first job generally counts as business too.
Can I write off cleaning supplies and equipment?
Yes. Supplies used up in the work are current expenses. Durable equipment such as a commercial vacuum or carpet machine may be capital property deducted over time through CCA.
How do I handle paying someone who cleans with me?
Their pay is a deductible subcontractor cost: keep a record or invoice. If you control their work and they work only for you, the CRA may treat them as an employee, which brings CPP and EI obligations.
Do house cleaners have to charge GST/HST?
Once revenue exceeds $30,000 in a single calendar quarter, or over four consecutive quarters, registration is mandatory and you charge GST/HST on your (taxable) cleaning services while claiming it back on supplies and equipment.
How much should I set aside for taxes as a cleaner?
Reserve 20-25% of income for income tax and CPP, plus any GST/HST you collect once registered.
Official CRA references
Check the CRA’s Form T2125 and business expense guidance against your tax year and circumstances.
The information in this guide is for general informational purposes only and is not intended as accounting, tax, business, or legal advice. Accountly does not provide professional services or act as your accountant, tax advisor, or lawyer. No client relationship is created by your use of this material. Always seek advice from qualified professionals who understand your particular circumstances before acting on any information contained herein.