Taxes

The CRA Mileage Deduction: A Simple Guide for 2026

 ·   ·  Updated  ·  2 min read

If you use your car for work, business driving may support a share of eligible vehicle costs. The records matter because the business-use percentage depends on kilometres you can support.

How the deduction actually works

The CRA lets you deduct the business-use portion of your vehicle costs. The key word is portion — you can’t write off your whole car, only the share that’s for earning income.

That share is calculated from your driving:

Business-use % = business kilometres ÷ total kilometres driven in the year

Apply that percentage to your eligible vehicle costs (fuel, insurance, maintenance, licence and registration, and the like), and that’s your deduction. Drive 8,000 business km out of 20,000 total, and 40% of those costs may be deductible.

Note: employees and the self-employed have different rules, and there's also a separate per-kilometre "reasonable allowance" rate the CRA updates each year (mostly relevant to employer reimbursements). Check the current figure and your situation when you file.

The logbook supports the calculation

Whatever method applies to you, the CRA expects a logbook to support the business-use percentage. For each business trip, record:

  • the date,
  • the destination,
  • the purpose (who you saw / why), and
  • the kilometres driven.

You’ll also note your odometer at the start and end of the year for the total-distance figure.

A full-year logbook is the best evidence. The simplified three-month method is available only after a full-year baseline has been established, the base year remains representative of normal use, and the sample-year result is within 10% of the base-year result. Confirm those conditions before relying on a sample.

Make it a two-tap habit

Tracking trips shouldn’t require a spreadsheet in the glovebox. With PKTD you can log a trip — date, distance, and purpose — in a couple of taps, right alongside your fuel receipts, so your mileage and your vehicle costs live in the same place at tax time.

Receipt exports and Mileage Tracker exports are separate. When route, distance, purpose, or reimbursement details are needed, export mileage from Mileage Tracker separately and assemble both files into a package for your accountant or records. Pair them with a clean set of organized receipts to make year-end review easier. Driving for a platform? See how PKTD helps rideshare and delivery drivers keep mileage and fuel receipts nearby.

The takeaway

Each business kilometre you log contemporaneously helps document the business-use calculation. A few seconds per trip can produce a record that is easier to review later.

This is general information, not tax advice. Rules differ for employees vs. the self-employed and change over time — confirm specifics with the CRA or a qualified professional. See our disclaimer.

Frequently asked questions

What is the CRA mileage rate for 2026?
This guide covers the actual-expense method, where you deduct the business-use share of costs like fuel, insurance, maintenance, and licence and registration. Separately, the CRA sets a per-kilometre "reasonable allowance" rate that it updates each year, but that figure is mostly relevant to employer reimbursements rather than to writing off your own vehicle costs. Because the rate changes annually, check the current figure and your situation with the CRA when you file. This is general information, not tax advice.
What information does a CRA mileage logbook need to include?
For each business trip, the CRA expects you to record the date, the destination, the purpose (who you saw or why), and the kilometres driven. You should also note your odometer reading at the start and end of the year to establish your total distance. Logging trips as they happen is safer than reconstructing a year of driving from memory.
Can I deduct the full cost of my car if I use it for work?
No. The CRA only lets you deduct the business-use portion of your vehicle costs — the share used to earn income — not your whole car. You work out that share from your driving (business kilometres divided by total kilometres) and apply it to eligible costs like fuel, insurance, maintenance, and licence and registration.
Do I have to log every trip, or can I use a sample logbook?
A full-year logbook is the best evidence. The simplified three-month method is available only after a full-year baseline has been established, the base year remains representative of normal use, and the sample-year result is within 10% of the base-year result. Confirm the sample method and your facts with the CRA or a qualified professional.

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