Do I need a mileage log to claim vehicle expenses in Canada?
Yes. Without a logbook, the CRA can deny your entire vehicle claim. Your log records each business trip: the date, destination, business purpose, and kilometres driven.
Mileage & Vehicle Expenses
Free CRA Mileage Log Template
A simple, CRA-ready logbook for Canadian sole proprietors and trades. Track your business kilometres, work out your business-use percentage, and claim your vehicle costs on T2125 Line 9281.
Get the free template emailed to you
We will send the spreadsheet (it opens in Excel, Google Sheets, or Numbers), plus a printable version for the truck.
No spam, and we will not share your email.
What the CRA expects in a mileage log
The rule is blunt: no log, no deduction. A logbook is how you prove your business-use percentage if the CRA ever asks. For every business trip, record:
- The date of the trip
- Where you started and where you drove to
- The business reason (the client, job, or errand)
- The kilometres driven for that trip
You also note your odometer at the start and end of the year to get your total kilometres. Keep the log, and your vehicle receipts, for six years.
How your deduction is calculated
1. Your business-use %
Business kilometres divided by total kilometres driven for the year. Drive 8,000 business km out of 20,000 total, and your business-use is 40 percent.
2. Your actual costs
Add up what the vehicle actually cost: fuel, insurance, repairs, maintenance, and licensing. Apply your business-use percentage to that total.
3. Line 9281
The result is your deductible motor vehicle expense. It goes on Line 9281 of Form T2125 and lowers your taxable business income.
One common mix-up: there is no flat per-kilometre rate you can claim as a sole proprietor. The per-kilometre figure you may have seen is what an employer pays an employee. When you are self-employed, you deduct actual costs at your business-use percentage. That is exactly why the logbook matters.
How to use the template
1
Enter your email and we send you the spreadsheet. Open it in Excel, Google Sheets, or Numbers. It has two example rows showing how to fill it in, so delete those first.
2
Add a row for every business trip as it happens. The date, where you went, the business reason, and the kilometres. The odometer columns are optional but make year-end easier.
3
At year-end, total your business kilometres and your total kilometres, then divide for your business-use percentage. Apply that percentage to your vehicle costs and put the result on T2125 Line 9281.
Get the free template emailed to you
We will send the spreadsheet (it opens in Excel, Google Sheets, or Numbers), plus a printable version for the truck.
No spam, and we will not share your email.
Or never touch a spreadsheet again
NorthOS logs your business kilometres as you drive, applies your business-use percentage to your actual costs, and carries the total straight to T2125 Line 9281. The logbook builds itself.
Keep reading
Vehicle Expenses for the Self-Employed
The full picture on Line 9281, business-use percentage, and what you can claim.
Capital Cost Allowance (CCA)
How the vehicle itself, and your bigger tools, are written off over time.
The Complete T2125 Guide
Line by line, the form every Canadian sole proprietor files.
NorthOS for Trades & Contractors
Bookkeeping built for tradespeople who drive to jobs and bill for labour.
When to Register for GST/HST
The $30,000 threshold, how it is measured, and what to do next.
GST/HST Calculator
Check the tax on a job in any province in seconds.
Mileage log questions
Is there a flat per-kilometre rate I can just claim?
Not as a self-employed sole proprietor. The per-kilometre rate you may have heard of is the allowance an employer pays an employee. When you are self-employed, you deduct your actual vehicle costs multiplied by your business-use percentage, reported on T2125 Line 9281.
How do I calculate my business-use percentage?
Divide your business kilometres by the total kilometres you drove in the year. For example, 8,000 business km out of 20,000 total km is 40 percent. That percentage then applies to all of your vehicle costs.
How long do I keep my mileage log?
Six years from the end of the tax year it supports. Keep it with your vehicle receipts.
Do I have to log every trip, every single year?
Keep one full year as a base year. After that, the CRA lets you use a representative three-month sample to estimate the rest of the year, as long as your driving pattern stays within 10 percent of the base year.
Where does the deduction end up on my tax return?
On Line 9281 (Motor vehicle expenses) of Form T2125, the statement of business activities you file with your personal return.
This template and guide are general information, not tax advice. For your situation, check the CRA's guidance or talk to a tax professional.