Vehicle Expense Deduction Calculator Canada
Prorate actual operating costs from your kilometre log and compare the result with the current allowance benchmark.
Estimated vehicle deduction
$8,08060.0% business use
Prorated shared costs
$7,380Shared costs entered: $12,300
CRA allowance benchmark
$8,340$0.73/km first 5,000; $0.67/km after
For 2026, Finance Canada lists a $350 monthly interest limit and $1,100 monthly lease limit before tax. Enter only the allowable amount. Keep a kilometre log and receipts; commuting is personal travel.
What this estimate includes
Shared costs include fuel, maintenance, insurance, licences, allowable interest or lease costs and CCA. The calculator applies the business-use ratio to those costs.
Use the CCA calculator for the vehicle’s depreciation claim. Passenger-vehicle cost ceilings and monthly interest or lease limits can restrict the amounts entered here.
Questions this calculator answers
How do self-employed people calculate vehicle expenses?
CRA generally prorates shared operating costs by business kilometres divided by total kilometres. Business parking and supplementary business insurance can be added in full.
Is driving from home to work deductible?
Ordinary commuting is personal. Travel from a regular place of business to a client or another business destination may be business travel; keep a contemporaneous log.
Is the per-kilometre allowance the same as my deduction?
No. The allowance rates are a reasonable-allowance benchmark for employers. A self-employed T2125 claim normally uses actual eligible costs and business-use kilometres.
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