Self-Employed Vehicle Expense Calculator 2026

Updated October 2026 · 2026 CRA rules

Self-employed people don't claim a per-kilometre rate. You add up what the vehicle actually cost, then claim the business share. Enter your kilometres and costs to get your business-use %, the amount for line 9281 of Form T2125 and your first-year capital cost allowance.

Kilometres

Business kilometres

Total kilometres

Every kilometre on the odometer for the year, personal and business.

Vehicle type

Which type is mine?

A passenger vehicle is a car or most SUVs and minivans you also drive personally. A motor vehicle, for the limits on this page, is one you use more than half the time to carry goods or equipment, with seating for the driver and no more than two passengers. An extended cab, SUV or van with seating for four to nine can still be a motor vehicle if business use is 90% or more. A zero-emission passenger vehicle is a plug-in that qualifies for class 54.

Province or territory

Used for the sales tax on the class 10.1 and class 54 caps, and on the lease limits.

Operating costs for the year

Fuel, oil or electricity

Insurance

Maintenance and repairs

Licence and registration

Business parking

Claimed in full, not multiplied by the business-use %.

Extra business-only insurance

Loan interest (Chart B)

Interest paid this year

Days interest was payable

Vehicle bought after 2023

Lease (Chart C, 2025 or 2026 leases)

When was the lease signed?

Lease charges this year, including tax

Days leased this year

Days leased in earlier years

Manufacturer's suggested list price

Lease amounts deducted in earlier years

Ownership and first-year CCA

Purchase price, including tax

Year bought

Opening UCC, if bought before this year

Estimate for general information, not tax advice. Check with the CRA (or Revenu Québec) or a qualified professional before you file.

The federal government has proposed permanent immediate expensing for most assets bought on or after September 15, 2026. It isn't law yet, so this calculator uses the rules in force today. We'll update it if it passes.

Why not 73¢ a km?

That figure is the 2026 allowance an employer can pay an employee for the first 5,000 kilometres. It is not a deduction for someone who works for themselves. Add up the real costs, then take the business share. The mileage calculator is for the employer allowance, not for line 9281.

What counts in line 9281

Fuel, insurance, repairs, licence fees, and the allowed interest or lease, each multiplied by business kilometres divided by total kilometres. Parking you paid only for business trips, and extra insurance that covers only the business, stay at 100%. Capital cost allowance does not go on line 9281. It goes on line 9936. For the full schedule, use the CCA calculator.

Class 10 vs class 10.1

A passenger vehicle that costs $39,000 or less before tax is class 10. Above that, it is class 10.1: one vehicle in its own class, no recapture and no terminal loss when you sell, and in the year you sell it you claim half the usual CCA if you still owned it at the start of that year. A zero-emission passenger vehicle is class 54, capped at $61,000 plus sales tax, and can be written off in full in 2026.

Logbook rules

The record the CRA prefers is a full-year logbook: date, destination, purpose, kilometres, and the odometer at the start and end of the year. After one complete base year, a sample of at least three months is accepted if it stays within 10% of that base year. Keep the log and the receipts for six years.

Questions

How do I calculate business use of my vehicle?

Divide the kilometres you drove to earn business income by the total kilometres you drove in the year. The logbook is where both numbers come from.

Can I claim 73 cents per km if I'm self-employed?

No. Self-employed people deduct actual vehicle costs multiplied by their business-use percentage. The per-kilometre rate is an allowance an employer can pay an employee.

What is the class 10.1 limit for 2026?

A passenger vehicle bought in 2026 that costs more than $39,000 before tax is class 10.1. The capital cost is capped at $39,000 plus GST/HST and PST.

How much car loan interest can I deduct in 2026?

For a passenger vehicle bought after 2023, deductible interest is limited to $11.66 a day. A truck or van used to carry goods or equipment doesn't have that passenger-vehicle limit.

Do I need a logbook?

Yes. Record the date, destination, purpose and kilometres of each business trip, plus the odometer at the start and end of the year. Keep those records for six years.