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Answers · Bookkeeping and Deductions

Are investment advisor fees tax deductible in Canada?

Fees you pay separately for investment advice or for managing a non-registered investment account are deductible on line 22100 of your personal return, as long as the fee is charged and paid on its own rather than embedded in the investment itself. Fees connected to a registered account such as an RRSP, TFSA, or RESP are not deductible, and neither are trading commissions or fees for general financial planning that are not tied to managing specific investments. The management expense ratio built into a mutual fund is not a separate deductible fee either, since it is baked into the fund's return rather than billed to you directly. A corporation paying similar fees on its own non-registered investment account can generally deduct them the same way.

By the AnalytIQ Accounting team · Last reviewed: September 6, 2026

What actually qualifies: line 22100 and fees paid separately

Fees paid for advice on buying or selling a specific investment, or for the ongoing management of a non-registered investment account, are deductible as carrying charges and interest expenses on line 22100 of your T1. The key requirement is that the fee is billed and paid separately, typically shown on an invoice or a statement from the advisor, rather than being built into the price of the investment itself. If you can point to a specific dollar amount charged for the service, it is a strong sign the fee is deductible; if the cost is invisible and only reflected in a lower return, it generally is not. Fee-based advisory accounts, which typically charge a percentage of assets under management billed on a statement, are the clearest example of a structure built around this deductible model.

A fee for pure financial planning that is not tied to managing specific investments — a retirement projection or a general budget review, for example — is generally not deductible on this line, since it is not close enough to the activity of earning investment income. When an advisor bundles planning and investment management into one combined fee, only the portion tied to managing the non-registered investments belongs on line 22100.

Interest on money borrowed to invest is a separate item that also sits on line 22100 alongside carrying charges, and the two are easy to confuse since both relate to the cost of holding investments. An investment loan's interest is deductible when the borrowed funds are used to earn investment income, following its own set of rules distinct from the fee-based test that applies to advisory charges.

Why RRSP, TFSA, and RESP fees do not qualify

Fees tied to a registered account — an RRSP, TFSA, RESP, or similar — are not deductible, even if the account holds exactly the same investments as a non-registered account managed by the same advisor. These accounts already receive their tax benefit through registration itself, whether that is a deduction on contribution, tax-free growth, or a targeted savings incentive, so the fees are not deducted a second time. Clients who pay one combined advisory fee across both registered and non-registered accounts should ask for a breakdown, since only the non-registered portion is deductible.

Paying an RRSP or TFSA management fee from outside the account, rather than having it deducted directly from the account's own balance, does not change this outcome either. Some investors assume that paying the fee personally somehow converts it into a deductible expense, but the deduction turns on which account the fee relates to, not on which pocket the money came from.

Commissions and management expense ratios do not count

A trading commission paid to buy or sell a specific security is not a deductible carrying charge; instead, it adjusts the cost base or proceeds of that transaction when you eventually calculate a capital gain or loss. Mutual fund and ETF management expense ratios (MERs) are similarly not deductible on their own, since the fee is embedded in the fund's daily pricing and never appears as a charge billed to you. Both reduce your actual investment return, just not through a line 22100 deduction.

This is one of the more common points of confusion, since an investor holding mostly mutual funds may genuinely have no separately billed fee to deduct at all, while an investor who moved to a fee-based advisory account has a clear, deductible number every year. The type of account and fee structure, not how much was actually paid in total, determines whether there is anything to claim.

Corporate accounts: the same rule applies

A corporation that holds its own non-registered investment portfolio, often inside a holding company, can generally deduct investment management fees on that portfolio the same way an individual would, reducing the corporation's investment income for the year. The restriction on registered accounts does not apply in the same way to a corporation, since corporations do not hold RRSPs or TFSAs, but the requirement that the fee be billed separately still applies. Where a holding company earns significant passive investment income, its fee deductions are one of several factors that feed into the broader small business deduction calculation for the connected operating company.

How we handle this, and where the professional side comes in

We ask clients for the actual fee statement from their advisor or investment platform rather than assuming a round percentage is deductible, since the deductible amount depends on exactly how the fee was charged and against which accounts. This is one of the smaller items on a personal return, but it is also one of the easiest to get wrong when the statement blends several accounts together, and we would rather resolve it before filing than after. A client who switches advisors mid-year also often ends up with two separate fee statements to reconcile rather than one, and both need to be checked the same way, since the deductible amount depends on the total actually charged for the year, not on which single firm happened to be managing the account longer.

If you are the one charging these fees — working as a financial advisor or running an advisory practice — the accounting questions run the other way, covering how fee income is taxed and how GST/HST applies to different services. Our page on tax services for financial advisors covers that side, and our broader tax services handle the personal-return side above.

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ReportingAccrual requiredCRA requires accrual accounting; cash basis is limited to farmers, fishers and some agents.
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DeductionMeals: 50% limitOnly 50% of the GST/HST and cost of meals and entertainment is recoverable, with narrow exceptions.
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Related questions.

Can I deduct fees for managing my TFSA?

No, fees connected to a TFSA, RRSP, or RESP are not deductible regardless of how they are billed, since these accounts already receive their tax benefit through registration.

Are fees for a robo-advisor deductible the same way?

Yes, the same rule applies regardless of whether the advice comes from a person or an automated platform; what matters is whether the fee is billed separately and tied to a non-registered account.

Where do I find the fee amount to claim if my statement does not show it clearly?

Ask your advisor or platform for a year-end summary of fees charged, broken out by account, since many statements report performance net of fees without stating the dollar amount separately.

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