Vehicle expenses
You can deduct the business share of running your car or truck. A logbook is how you prove the share.
If you use your own car or truck for work and for personal driving, you can deduct only the business share of its costs.
Work out the business share
Business kilometres divided by total kilometres for the year. If you drove 20,000 km and 12,000 were for work, your business share is 60%.
Driving from home to a regular workplace usually counts as personal. Driving to customers, suppliers and job sites is business.
Keep a logbook
For each business trip, write down the date, where you went, why, and the kilometres. Note your odometer at the start and end of the year.
CRA also accepts a simplified logbook in some cases: one full year of records as a base, then a three-month sample in later years. See the CRA page for the rules.
What you can include
- Gas and oil
- Insurance
- Licence and registration
- Repairs and maintenance
- Interest on a car loan, or lease payments (both have limits)
- Capital cost allowance (CCA) on a vehicle you own
In CollabNorth
Record vehicle costs under Vehicle (gas, insurance, repairs), at the full amount on the receipt. At year end, open your T2125 year on Tax time and fill in the vehicle helper (Chart A of the T2125):
- Enter the total kilometres you drove in the year and the kilometres for the business, from your logbook.
- Your Vehicle expenses are already included. Add only costs you didn't record, such as insurance paid from a personal account.
- Add business parking. It is deducted in full, not by the business share.
The helper applies your business share and puts the result on line 9281. Until you enter kilometres, line 9281 shows the full amount of your Vehicle expenses, which is only right if you use the vehicle for nothing but the business.
Interest on a car loan and lease payments have monthly limits for passenger vehicles (Charts B and C in CRA guide T4002). Enter the amount you're allowed. CCA on a vehicle you own goes on line 9936 with your other CCA, not on line 9281. See Your T2125 package.
CollabNorth doesn't keep a mileage log. A notebook in the glovebox or a mileage app works fine.
This is general information to help you keep your own records. It is not tax or legal advice.
Based on: CRA: Motor vehicle expenses and CRA guide T4002
Last checked: 2026-10-13