CRA rules can look complicated because mileage allowances, self-employed vehicle expenses and logbook requirements are different things. Start with the driving record, then use the rule that fits your situation.
A CRA per-kilometre allowance and a self-employed motor vehicle expense claim are not the same calculation.
If the same vehicle is used for business and personal driving, CRA generally allows only the portion of eligible expenses connected with earning business income.
Motor vehicle expenses guideThese prescribed rates are not a universal self-employed mileage deduction rate.
2026 CRA mileage rate guideCRA publishes an example where a business vehicle travelled 27,000 kilometres to earn income out of 30,000 total kilometres. With $5,400 of vehicle expenses, the deductible business portion is $4,860.
The important part is not memorizing the example. It is seeing why both numbers matter: without the business kilometres and the total kilometres, you do not have the business-use percentage used in the calculation.
See the CRA calculationCRA’s record-keeping guidance is specific enough to turn into a practical checklist.
When the business trip happened.
Where the business trip went.
Why the trip was connected with earning income.
Distance driven for the business trip.
Beginning and end of the fiscal period for each vehicle.
CRA says each business vehicle should have its own record showing total kilometres, business kilometres, and the costs of operating and maintaining that vehicle.
That is also why HonestMile Pro supports multiple vehicles: the mileage history can stay associated with the vehicle that produced it.
CRA motor vehicle expense guidanceThis page is the starting point. The detailed guides separate record keeping, allowance rates and self-employed vehicle expenses so the rules do not get mixed together.
The details matter because a mileage allowance, a vehicle expense deduction and a mileage log are related — but they are not the same thing.
Not generally. The $0.73 rate for the first 5,000 kilometres in the provinces is part of CRA’s prescribed allowance rates for reasonable employer-paid automobile allowances.
Self-employed motor vehicle expenses are generally based on eligible actual expenses and the business-use share of the vehicle. Your individual tax situation may differ.
CRA says to keep both the total kilometres driven and the kilometres driven to earn business income. Those figures are used to support the business use of the vehicle.
CRA’s logbook guidance lists the date, destination, purpose and number of kilometres driven for each business trip. Odometer readings should also be recorded at the beginning and end of the fiscal period.
CRA provides a simplified logbook method in certain circumstances after a complete 12-month base-year logbook has established the vehicle’s business-use pattern. Specific conditions apply, so review the CRA guidance before relying on the simplified method.
Read the detailed CRA mileage log guideHonestMile keeps unlimited core trip tracking free. Record driving, separate business and personal trips, and return to the history when you need it. Pro adds Auto Start, Cloud Sync, multiple vehicles and PDF reports.
This page provides general information about mileage record keeping in Canada and is not tax or legal advice. Tax eligibility depends on your circumstances. Refer to current CRA guidance or a qualified tax professional when making tax decisions.
