Table of contents
TechNextPicks Editorial
Canada Edition
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Issue: Feb 2026
Vehicle
Business-use
Mileage log
Records
Self-Employed Vehicle Expenses Canada (2026): What Counts + How to Track
Last updated: February 15, 2026
This guide explains what vehicle expenses can be considered, how to track business use, and what records to keep. General info only — not tax advice.
Quick rules (read this first)
- Claim business-use portion only.
- Keep a mileage log to support the business-use percentage.
- Keep receipts, invoices, and statements for costs.
What counts as vehicle expenses
Common vehicle costs may include fuel, maintenance, insurance, interest, registration, and parking or tolls. Only the business-use portion is generally claimable.
Typical categories
- Fuel and oil
- Maintenance and repairs
- Insurance
- Interest or lease costs
- Parking and tolls
Proof to keep
- Receipts and invoices
- Insurance policy documents
- Maintenance records
- Mileage log
Mileage log basics
A mileage log helps show how much of your driving was for business. Keep it consistent and easy to verify.
- Record date, purpose, start and end locations.
- Track kilometres for each business trip.
- Keep total yearly kilometres for the vehicle.
Business-use percentage (simple formula)
Business-use percentage is typically calculated as business kilometres divided by total kilometres driven.
Business-use % = Business kilometres ÷ Total kilometres
Apply that percentage to vehicle costs to estimate the business portion.
Common mistakes to avoid
- Claiming 100% of costs when you have personal use.
- No mileage log or incomplete records.
- Mixing personal and business trips in calculations.
- Using estimates without backup.
- Not keeping receipts for repairs and fuel.
- Forgetting parking/tolls or insurance documentation.
Quebec note: the same business-use concept generally applies.
Vehicle Expense Tracker Starter
Planning only. This does not calculate tax savings or confirm deductibility.
If you enter business km, total km should be greater than zero.
Optional annual costs (planning only)
Business-use percentage
Enter kilometres to estimate
Business-use portion only. Keep a mileage log to support this.
Business portion estimate
Fuel
—
Insurance
—
Maintenance
—
Interest/lease
—
Parking/tolls
—
Planning only — not an official claim.
Proof to keep
- Mileage log (date, purpose, km)
- Fuel and maintenance receipts
- Insurance documents
- Parking and toll records
- Vehicle purchase/lease documents (if applicable)
FAQ
Can I claim my whole vehicle cost?
Generally, only the business-use portion applies. Personal use is excluded.
Do I need a mileage log?
A mileage log is strongly recommended to support business-use calculations.
What expenses count as vehicle costs?
Common items include fuel, insurance, maintenance, interest, and parking or tolls.
Is commuting to my main workplace a business trip?
Commuting is usually personal. Business trips are typically travel for business purposes.
What records should I keep?
Keep mileage logs, receipts, insurance documents, and invoices.
Does Quebec use different rules?
The business-use concept is similar, but follow Quebec guidance for filing.
Where do vehicle expenses show on my return?
They are commonly reported on the T2125 form for self-employed income.
Can I use estimates?
Use actual records whenever possible. Estimates are risky without support.
Does incorporation change this?
It can. Corporate vehicle use may be treated differently. Consider professional advice.