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Vehicle Expense Calculator

CANADA

Calculate your deductible business vehicle expenses using the actual expense method. Includes CCA, lease limits, and business-use percentage.

1 Vehicle & Ownership
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$
$
$
$
⚠️ Interest deduction is limited to $300/month ($3,600/year). Only the interest portion of your payment is deductible, not the principal.
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⚠️ Lease deduction is limited to approximately $1,050/month (plus tax) for most passenger vehicles. Luxury vehicles may have additional restrictions.
2 Kilometers Driven
km
km
📝 Keep a detailed logbook of business trips including date, destination, purpose, and kilometers. The CRA may request this to verify your business-use percentage.
3 Annual Vehicle Expenses
⛽ Fuel & Energy
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🛡️ Insurance & Registration
$
$
🔧 Maintenance & Repairs
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$
Deductible Vehicle Expenses
$7,212
60% business use of $12,020 total expenses
Actual Expense Method
Total Expenses
$12,020
Business Use %
60%
Deductible
$7,212
Per Business KM
$0.60
Recommended
Actual Expense Method
$7,212
Track actual costs × business %
Recommended
CRA Rate Method
$8,220
12,000 km × $0.70/km avg
Business Use Percentage
60%
0% 25% 50% 75% 100%
Expense Breakdown
Total Vehicle Expenses
$12,020
Deductible Amount (60%) $7,212
Cost Per Kilometer
Total Cost/KM
$0.60
CRA Rate (First 5K)
$0.72
CRA Rate (After 5K)
$0.66
✅
Actual Method Recommended
Based on your expenses and business use, the actual expense method gives you a larger deduction. Keep all receipts and maintain a detailed mileage log to support your claim.

Note: The CRA rate method ($0.72/km for first 5,000 km, $0.66/km thereafter for 2025) is typically used for employee reimbursements, not self-employed deductions. Self-employed individuals generally use the actual expense method. Business parking and tolls can be deducted at 100% if incurred for business purposes. Keep a logbook and all receipts. For bookkeeping support, contact EpicBooks.

Claiming Vehicle Expenses in Canada

If you use your personal vehicle for business, you can deduct the business-use portion of your vehicle expenses. The key is calculating what percentage of your total driving is for business purposes.

To determine your business-use percentage, divide your business kilometers by your total kilometers for the year. If you drove 20,000 kilometers total and 12,000 were for business, your business-use percentage is 60%. This percentage applies to most vehicle expenses including fuel, insurance, maintenance, and depreciation.

Expenses that can be prorated by business use include fuel, insurance, license and registration fees, maintenance and repairs, car washes, loan interest (capped at $300/month), lease payments (capped at approximately $1,050/month), and CCA (depreciation). Parking and tolls incurred specifically for business purposes can be deducted at 100%.

For vehicles you own, you claim Capital Cost Allowance instead of the actual depreciation. Most passenger vehicles fall into Class 10 (30% declining balance). Vehicles costing more than approximately $37,000 plus tax go into Class 10.1, which limits the depreciable amount. Zero-emission vehicles currently qualify for enhanced CCA rates.

The CRA prescribes per-kilometer rates ($0.72 for the first 5,000 km and $0.66 thereafter in 2025) primarily for employer reimbursements. Self-employed individuals typically use the actual expense method, but comparing both can help you understand your true vehicle costs.

Disclaimer: This calculator provides estimates for planning purposes. Keep a detailed vehicle logbook recording the date, destination, purpose, and kilometers for each business trip. Retain all receipts for vehicle expenses. Limits for interest, leasing, and CCA change periodically. Consult a tax professional to ensure you’re maximizing your deductions while remaining compliant with CRA requirements.