Canada · Tax basics

Canada: mileage, vehicle expenses and tax records

Business share of vehicle expenses

How the local rules work

For a vehicle used for business and personal driving, only the eligible income-earning share of costs can be claimed. Vehicle cost, interest and leasing limits can also matter.

What to keep

Record total and business kilometres for each vehicle, receipts, and each business trip’s destination and reason.

What the odometer message means

The app needs total vehicle distance, including personal driving, to estimate business use. Enter beginning and ending odometer readings for the same vehicle and reporting period. Missing total distance means the percentage is incomplete; it does not erase your recorded business trips.

Example · same vehicle, same period

Business distance12,000

Total distance15,000

Business use80%

80% business · 20% personal

12,000 ÷ 15,000 × 100 = 80%. Use miles or kilometres consistently. This is a usage ratio, not automatic permission to deduct 80% of every cost.

Avoid this mistake

An employee mileage allowance rate is not automatically a self-employed vehicle deduction rate. Keep each vehicle’s records separate.

Prepare your records in Free Mile Tracker

Select your country and the correct reporting period.
Review each trip and distinguish business from personal driving.
Add dated odometer readings and keep supporting expense documents.
Export your records and compare them with platform statements before filing.

A business-use percentage helps organize mixed-use records. Whether it can be used for a deduction depends on Canada’s rules and your filing method.

Official guidance

CRA: source for this guide

Source checked October 8, 2026. Confirm the applicable tax year on the official site before filing.