Taxes, Licences & Memberships
Professional dues, business licences, and association memberships are fully deductible — but gym memberships and social clubs are specifically excluded.
What You Can (and Can't) Deduct
Know exactly what belongs on Line 8760 — and what the CRA says doesn't qualify.
What Qualifies
- Annual business licence fees (municipal, provincial)
- Professional association dues (CPA, engineering, medical, law society)
- Trade and commercial association memberships (chamber of commerce, industry groups)
- Municipal business taxes
- Land transfer taxes on business property
- Subscriptions to professional publications and trade journals
- Professional certification renewal fees
- Regulatory fees required by your profession
Does NOT Qualify
- Club memberships for dining, recreation, or sporting (golf clubs, fitness clubs, social clubs)
- Union dues (claimed on personal return Line 21200, not on T2125)
- Income tax payments (federal or provincial)
- CRA penalties and fines
- Political party membership fees
- Personal magazine or newspaper subscriptions
Rules & Limits
Special CRA rules and percentage limits that apply to taxes, licences & memberships.
Special Rules
Dining/Recreation/Sporting Clubs Excluded
Heads upMembership dues for clubs whose main purpose is dining, recreation, or sporting activities are NOT deductible. This includes golf clubs, fitness clubs, yacht clubs, and social clubs, regardless of whether you use them for business networking.
Section 18(1)(l) of the Income Tax ActUnion Dues Go on Personal Return
Heads upIf you pay union dues, they are not claimed on your T2125. Instead, they go on Line 21200 of your personal T1 tax return as a deduction from total income.
Professional Publications
AdvantageSubscriptions to publications directly related to your profession or business are deductible on Line 8760. This includes trade journals, industry newsletters, and professional magazines.
Real-World Examples
See how different professionals use Line 8760 deductions in practice.
AWS Certification + Professional Membership
Paid for annual AWS Solutions Architect certification renewal and a professional IT association membership.
$650
$650 (100%)
CREA and Local Board Membership Dues
Paid annual dues to the Canadian Real Estate Association (CREA) and the local real estate board.
$2,100
$2,100 (100%)
Municipal Business Licence Renewal
Renewed the annual municipal business licence required to operate in the city.
$350
$350 (100%)
Common Mistakes to Avoid
These errors on Line 8760 can trigger a CRA review — here's how to get it right.
Trying to deduct golf club or fitness club memberships
The CRA specifically excludes memberships in clubs whose main purpose is dining, recreation, or sporting activities. This includes gym memberships, golf clubs, and social clubs — even if you use them for business networking.
Claiming union dues on T2125 instead of personal return Line 21200
Union dues are not a business expense on the T2125. They are claimed on Line 21200 of your personal T1 income tax return instead.
Missing professional publication subscriptions as deductible
Trade journals, industry newsletters, and professional magazine subscriptions directly related to your business are deductible. Many self-employed individuals forget to claim these.
Commonly Confused Categories
These categories are often mixed up with Taxes, Licences & Memberships. Here's the difference.
Sample Receipt Walkthrough
See how ScanForTax processes a typical licences expense.
CPA Ontario
2025-01-02
Ontario
How ScanForTax categorizes this
ScanForTax categorizes professional association dues under Taxes, Licences, and Memberships (Line 8760). The $91.00 HST is recoverable via ITC.
Frequently Asked Questions
Can I deduct my gym membership?
Where do union dues go?
Are professional magazine subscriptions deductible?
Related Professions
Profession-specific guides that frequently use Licences deductions.
Tax Guides by Province
See how tax recovery works for licences expenses in each province.
Related Expense Categories
Tax deadline is April 30th.
Start scanning now — your first 15 scans are free, no credit card required.
$250,000+ in receipts already processed by Canadian businesses