About Vehicle Expense Tracker
Track all vehicle expenses — fuel, maintenance, insurance, and mileage deductions — in one place. Calculate your business-use percentage for CRA tax deductions.
How to use
- Add your vehicle details: make, model, year, and whether it is owned or leased. If you use multiple vehicles for business, track each one separately. The CRA requires separate expense tracking for each vehicle used in your business.
- Log expenses by category as they occur throughout the year: fuel, oil changes, repairs, tires, insurance, registration and licence fees, car washes, parking (business-related), loan interest or lease payments. Keep all receipts — the CRA can request them during an audit.
- Record your total kilometres driven for the year and your business kilometres. The business-use percentage = business km / total km. If you drove 25,000 km total and 15,000 were for business purposes, your business-use percentage is 60%. This percentage determines how much of your total vehicle expenses you can deduct.
- Review your deductible vehicle expenses. Total expenses multiplied by your business-use percentage gives your deduction. With $8,000 in total expenses and 60% business use, your deduction is $4,800. Some expenses like business parking and supplementary insurance are 100% deductible without proration.
- Compare the actual expense method against the simplified per-kilometre method ($0.70/km for first 5,000 km, $0.64/km after). On 15,000 business km, the per-km method gives $9,900. If your actual expenses are $8,000 at 60% business use ($4,800), the per-km method is better. Run both calculations to choose the higher deduction.
- Export your complete vehicle expense report for tax filing. Self-employed individuals report vehicle expenses on form T2125. Employees must have a signed T2200 from their employer to claim vehicle deductions.
Frequently asked questions
What vehicle expenses are deductible in Canada?
Deductible expenses include: fuel and oil, insurance premiums, licence and registration fees, maintenance and repairs, tires, car washes, loan interest (limited to $300/month for passenger vehicles), lease payments (limited to $950/month), and Capital Cost Allowance (CCA) depreciation. All these expenses are prorated by your business-use percentage except for business parking fees and supplementary business insurance, which are 100% deductible. If you use the simplified per-kilometre method instead, you claim the CRA rate multiplied by your business kilometres and cannot also claim actual expenses.
How do I calculate business-use percentage?
Business-use percentage = Total business kilometres / Total kilometres driven during the year x 100. The CRA requires you to maintain a vehicle logbook recording each trip with date, destination, purpose, and distance — use our
Mileage Tracker to build this log throughout the year. Track your odometer at the start and end of the tax year to establish total kilometres. Business travel includes trips to clients, suppliers, job sites, and business meetings. Commuting from home to your regular workplace does NOT count as business travel unless your home is your principal place of business. A typical self-employed tradesperson driving to multiple job sites may have 60-80% business use.
Per-km method or actual expenses: which is better?
The per-km method (CRA rate: $0.70 for first 5,000 km, $0.64 thereafter) is simpler and often produces a higher deduction for vehicles with low operating costs. The actual expense method requires tracking every cost and prorating by business-use percentage, but can yield a larger deduction for expensive vehicles, older vehicles with high repair costs, or vehicles with high financing charges. Run both calculations: if you drove 12,000 business km, the per-km method gives $8,080. If your actual expenses were $12,000 at 60% business use, that is $7,200 — the per-km method wins by $880.
What is CCA for vehicles?
Capital Cost Allowance (CCA) is how the CRA allows you to deduct the depreciation of a vehicle used for business. Most passenger vehicles fall under CCA Class 10 at a 30% declining balance rate, with a capital cost limit of $37,000 (2025) plus applicable taxes. The half-year rule applies in the year of purchase — only 50% of the normal CCA rate applies. Zero-emission vehicles (electric/plug-in hybrid) may qualify for Class 54 at 100% CCA in the first year with an $61,000 capital cost limit. CCA is claimed as part of your actual vehicle expense deduction and is prorated by your business-use percentage.
Can I deduct vehicle expenses as an employee?
Yes, but only if your employer requires you to use your personal vehicle for work and provides a signed T2200 (Declaration of Conditions of Employment) confirming this requirement. Without a T2200, you cannot claim vehicle expenses as an employee. With the T2200, you can claim the same expenses as self-employed individuals (fuel, insurance, maintenance, etc.) prorated by your employment-use percentage. If your employer provides a vehicle allowance, it may be taxable income unless it is based on a reasonable per-km rate. Employer-reimbursed expenses cannot also be claimed as deductions.
What records do I need for a CRA vehicle expense audit?
The CRA expects: (1) a vehicle logbook showing dates, destinations, business purposes, and kilometres for each trip; (2) odometer readings at the start and end of the tax year; (3) receipts for all vehicle expenses (fuel, maintenance, insurance, etc.); (4) loan or lease agreements; (5) proof of vehicle purchase price for CCA claims; and (6) the calculation showing business-use percentage. Keep these records for at least 6 years. The CRA recommends a full 12-month logbook for the first year you claim vehicle expenses, after which a representative 3-month sample period may be accepted for subsequent years if your usage pattern is consistent.
Is this tracker free?
Yes, completely free with no account required. Track unlimited vehicles, log unlimited expenses, and export detailed reports for tax filing at no cost. The tracker categorizes expenses according to CRA guidelines, calculates your business-use percentage, compares actual versus per-km methods, and generates reports suitable for tax preparation or audit response. All data is processed locally in your browser. No personal or financial information is stored on any server.
Part of ToolFluency’s library of free online tools for Business. No account needed, no data leaves your device.