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Vehicle expense calculator — self-employed

Self-employed people claim the business part of their real car costs, based on business kilometres ÷ total kilometres.

You can claim
$0
Business-use %Car costs for the yearBusiness part+ Business parking & tolls
CRA can ask for a logbook: date, destination, purpose and km of every business trip. Driving from home to a regular workplace is personal. Capital cost allowance (depreciation) on a car you own is extra and not included here. Interest and lease amounts have yearly limits.
Track it all year: invoices, Gmail receipts, bank reconcile and your T2125.Join the early list

Questions

How do self-employed people claim car expenses in Canada?

Add up the year’s vehicle costs, then multiply by business kilometres ÷ total kilometres. Business parking and tolls are claimed in full. Report it on form T2125.

Do I need a mileage log?

Yes. CRA expects a logbook with date, destination, purpose and kilometres for each business trip. After one full year, a 3-month sample year can be used if your use is similar.

Is driving to my office a business trip?

No. Going from home to your regular place of business is personal. Trips to clients, suppliers or a market are business.

Can I use the per-kilometre rate instead?

The CRA per-km rates are for allowances an employer pays. Self-employed people claim the business part of actual costs, as this calculator does.

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