Professional dues, business licences, and association memberships are fully deductible — but gym memberships and social clubs are specifically excluded.
Know exactly what belongs on Line 8760 — and what the CRA says doesn't qualify.
Special CRA rules and percentage limits that apply to taxes, licences & memberships.
Membership 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 ActIf 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.
Subscriptions to publications directly related to your profession or business are deductible on Line 8760. This includes trade journals, industry newsletters, and professional magazines.
See how different professionals use Line 8760 deductions in practice.
Paid for annual AWS Solutions Architect certification renewal and a professional IT association membership.
$650
$650 (100%)
Paid annual dues to the Canadian Real Estate Association (CREA) and the local real estate board.
$2,100
$2,100 (100%)
Renewed the annual municipal business licence required to operate in the city.
$350
$350 (100%)
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.
These categories are often mixed up with Taxes, Licences & Memberships. Here's the difference.
See how ScanForTax processes a typical licences expense.
CPA Ontario
2025-01-02
Ontario
ScanForTax categorizes professional association dues under Taxes, Licences, and Memberships (Line 8760). The $91.00 HST is recoverable via ITC.
Profession-specific guides that frequently use Licences deductions.
See how tax recovery works for licences expenses in each province.
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