A mileage claim is a deduction you can receive each year that reimburses you for any business-related mileage. You will be eligible to claim mileage if you drive your personal vehicle for business purposes.
If you receive an allowance or reimbursement from your employer for your business driving, you will not be able to submit a mileage claim to the CRA. However, if you are not reimbursed by your workplace, you can submit a mileage claim for all expenses related to your business mileage on your annual tax return. See how to claim vehicle expenses from the CRA for business-related driving.
Claiming mileage from the CRA
In order to submit a mileage claim on your tax return, you will need to keep records of all your driving and all vehicle expenses throughout the year. If you use your vehicle for both business and personal driving, you can claim mileage only for the business portion of use.
Keep records of your driving by logging the following:
- All kilometres you’ve driven throughout the year
- A breakdown of business and personal journeys
- The date, destination and kilometres driven for each trip
- Record the vehicle’s odometer readings at the start and end of the year
Keep receipts and invoices of the following car expenses:
- fuel or electricity (if you drive an electric vehicle)
- maintenance and repairs
- licence and registration fees
- capital cost allowance
- eligible interest you paid on a loan used to buy the motor vehicle
- eligible leasing costs
After determining the percentage of business use of your vehicle, work out your mileage claim with the same percentage of all vehicle expenses. For example, if 50% of your accrued kilometres are business-related, you will be able to claim 50% of all vehicle expenses.
Claiming mileage on your taxes
On your tax return, enter the calculated amounts in the Calculation of Allowable Motor Vehicle Expenses area on Form T777 and attach it to your paper return.
Enter on line 22900, the allowable amount of your employment expenses from the total expenses line of Form T777.
Learn more about your mileage claim according to your situation in our CRA mileage guide.
See the methods and a step-by-step explanation of the five steps to claiming motor vehicle expenses from the CRA as a self-employed individual or an employee.
CRA Mileage rate 2023 in Canada. See the new CRA per-km rate for business kilometres and how to claim mileage in the new year with the CRA 2023 mileage rate.
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