CRA mileage rate 2026: what self-employed Canadians can claim and how to log it

Short answer: if you are self-employed, the CRA does not give you a flat per-kilometre deduction rate to use instead of your actual vehicle costs. You generally claim the business-use portion of the reasonable costs of running your vehicle, supported by receipts and a mileage log. The 2026 73¢/km rate you may see online is the maximum reasonable allowance for many employees, not a standard self-employed deduction.

That distinction matters. A clean log and your actual costs are what make a vehicle claim defensible at tax time.

This guide is general information, not tax advice. Rules and your facts matter. Confirm your return with a qualified tax professional when needed.

The 2026 CRA rate: what it does—and does not—mean

For 2026, Finance Canada set the maximum reasonable tax-exempt employer allowance at 73¢/km for the first 5,000 business kilometres and 67¢/km after that in the provinces. In the Yukon, Northwest Territories, and Nunavut, the corresponding rates are 77¢/km and 71¢/km. Those rates are relevant when an employer reimburses an employee using their personal vehicle.

For a sole proprietor filing business income, the CRA's motor-vehicle guidance instead points you to the business share of actual eligible operating costs. Do not multiply your self-employed kilometres by 73¢ and treat that as your CRA deduction unless your tax professional has identified a different, applicable rule for your situation.

Situation	Typical approach
Employee reimbursed by an employer	Employer may use a reasonable per-kilometre allowance; the 2026 benchmark is 73¢ for the first 5,000 km and 67¢ after in the provinces (77¢/71¢ in the territories).
Self-employed person using a personal vehicle to earn business income	Track total and business kilometres, keep receipts, then claim the business portion of eligible actual costs.
Vehicle used only personally	No business vehicle expense claim.

Sources: Finance Canada's 2026 automobile limits and CRA motor-vehicle expenses.

How to calculate your business-use percentage

The basic calculation is straightforward:

business kilometres ÷ total kilometres driven = business-use percentage

Apply that percentage to the eligible costs of running that vehicle. The CRA says you need records of both total kilometres and kilometres driven to earn business income; if you operate more than one vehicle, calculate each separately.

Example

Imagine you drive 20,000 km in 2026, including 8,000 km to meet clients, pick up supplies, or perform work. Your business-use percentage is 40%.

If your supported eligible vehicle costs total $9,000, the starting calculation is:

$9,000 × 40% = $3,600

That example is deliberately simplified. Passenger-vehicle limits, capital cost allowance, GST/HST input tax credits, financing, and other facts can change a claim. It is a record-keeping example—not a filing instruction.

Costs that may be part of the calculation

The CRA's motor-vehicle guidance covers the business portion of costs to run a vehicle used to earn business income. Depending on the facts, that can include fuel, insurance, repairs and maintenance, licence and registration fees, interest on money borrowed to buy the vehicle (subject to limits), leasing costs (subject to limits), and capital cost allowance.

The important word is business. Personal driving is not deductible. Keep receipts and do not double-count a cost elsewhere on your return.

What a CRA-ready mileage log should contain

For each business trip, CRA says the strongest evidence is an accurate logbook showing:

Record	Why it matters
Date	Places the trip in the tax year.
Destination	Shows where you went.
Business purpose	Connects the trip to earning income.
Kilometres driven	Supports the business-distance total.
Start and end odometer readings	Supports the vehicle's total annual distance.

Keep the receipts for the vehicle costs, too. A mileage app can make daily capture much less painful, but it does not turn a personal trip into a business trip. Review and correct the purpose before you file.

The CRA also allows a simplified logbook in certain circumstances after a full 12-month base year. It has conditions: the business use in the later year must be within 10% of the base-year percentage, and the CRA sets additional record expectations. Read the full rule before relying on it.

Source: CRA — Motor vehicle records.

Five common mistakes to avoid

1. Using an employee allowance as a self-employed flat rate. They are not the same rule.
2. Logging business trips but not total annual kilometres. You need both to calculate the percentage.
3. Writing "meeting" as the purpose. "Client site visit — Oakville" is much more useful.
4. Claiming the commute from home to a regular place of work as business travel. Whether a trip is business-related depends on the facts; get advice when it is unclear.
5. Waiting until March to reconstruct the year. That is when gaps and unsupported estimates appear.

FAQ

What is the CRA mileage rate for 2026?

For many employer-paid allowances in the provinces, the 2026 benchmark is 73¢/km for the first 5,000 business km and 67¢/km after that (77¢ and 71¢ in the territories). Self-employed people generally calculate the business portion of actual vehicle costs instead.

Can I claim gas without a mileage log?

The CRA says you need records of total and business kilometres and receipts to support vehicle expenses. A logbook is the clearest way to support the business share.

How long should I keep a mileage log and receipts?

CRA record-retention periods can vary by circumstance. Its motor-vehicle page specifically says the full 12-month base-year logbook used for the simplified method must be kept for six years from the end of the tax year for which it was last used. When in doubt, retain your tax records and supporting documents for at least the applicable CRA retention period and ask a professional about your case.

This article is general information for Canadian small businesses and self-employed people, not tax, legal, or accounting advice. Verify current rules with the CRA or a qualified professional before filing.