📅 Official 2026 CRA Rates

Automobile Mileage Calculator

Calculate your exact tax deduction for business driving using the CRA's tiered per-kilometre allowance rates.

km
km
Total Allowable Deduction
$0
Based on 2026 CRA Tiered Rates
Tier 1: First 5,000 km $0 Rate: $0.73 / km
Tier 2: Additional km $0 Rate: $0.67 / km
CRA Compliance Warning: The rates used above are the official 2026 CRA Automobile Allowance Rates. Regular commuting from your home to a permanent workplace is considered personal driving and cannot be claimed. To defend your claim in a CRA audit, you must maintain a detailed logbook containing the date, destination, business purpose, and exact distance of every trip. For independent contractors (Uber/Delivery), the simplified mileage method is easiest, but the "Detailed Method" (claiming exact % of all car costs) often yields a higher deduction if you drive extensively.

Canada CRA Mileage & Automobile Expense Calculator 2026

📈 2026 CRA Tax Update: For the 2026 fiscal year, the CRA automobile allowance rates have been updated. Generally, you can claim 72¢ per kilometer for the first 5,000 km driven and 66¢ per kilometer thereafter. Our calculator is pre-set with these 2026 figures to help Uber drivers, couriers, and contractors maximize their tax refunds.

If you use your personal vehicle for business purposes—whether you are an Uber driver, a real estate agent, or an independent contractor—you are entitled to significant tax deductions. However, the CRA is extremely strict about how these expenses are calculated. You cannot simply claim your total gas bill; you must calculate the specific “business portion” of your annual mileage. Our CRA Mileage Expense Calculator simplifies this complex process, ensuring you stay compliant with tax laws while putting more money back in your pocket.

How to Calculate Your Vehicle Tax Deduction

Don’t leave money on the table during tax season. Follow these steps to generate your expense report:

  1. Enter Your Total Annual Kilometers: Input the total distance you drove for the entire year (both personal and business).
  2. Input Your Business Kilometers: This is the distance driven specifically for work (e.g., while the Uber app was on, or driving to client meetings).
  3. Select Your Province: While federal rates are standard, some provincial tax credits may apply to specialized commercial vehicles.
  4. Review Your Deduction: The tool will instantly calculate your total deductible amount based on the 2026 CRA tiered rates ($0.72/$0.66).

Frequently Asked Questions

1. Do I need a logbook to claim mileage in Canada?
Yes, absolutely. The CRA requires a detailed logbook that records the date, destination, purpose, and kilometers driven for every single business trip. If you are audited and cannot produce a logbook, the CRA can completely deny your vehicle expense claims and charge you interest and penalties.
2. Can I claim the drive from my home to my first Uber passenger?
Generally, the CRA considers the drive from your home to your first place of work as “commuting,” which is not tax-deductible. However, for ride-share drivers, once you turn on the app and are actively looking for pings, your mileage is typically considered business-related. Consult with a tax professional for your specific situation.
3. Should I use the “Per-KM” rate or the “Detailed Method”?
The “Per-KM” (Simplified) method is easier but usually only available to employees reimbursed by employers. If you are self-employed, you typically use the “Detailed Method,” where you track all actual expenses (gas, insurance, repairs, lease) and then deduct the business percentage of those costs. Our tool helps you estimate the simplified value for quick budgeting.
4. Can I deduct my car insurance and maintenance costs?
Yes, but only the business-related percentage. For example, if you drove 10,000 km total and 6,000 km was for business, you can deduct 60% of your total gas, insurance, registration, and maintenance bills for the year.
5. What is CCA (Capital Cost Allowance) for vehicles?
CCA is essentially “depreciation.” Since vehicles lose value over time, the CRA allows you to deduct a percentage of the vehicle’s purchase price each year. For most passenger vehicles (Class 10 or 10.1), the rate is 30% per year on a declining balance basis.

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