Mileage Claim

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
insurance
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.

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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.

FAQ

How does claiming mileage on taxes work?

You can claim mileage on your taxes from the CRA if you have used your personal vehicle for business purposes throughout the tax year. You can claim mileage on your taxes either through the logbook method.

How to claim mileage on taxes in Canada?

You can claim mileage on taxes during the recalculation period - calculate the business use percentage of your driving - if you drove for business 20% of the time, you will be able to claim 20% of that year’s car expenses. Remember to keep all your car expenses receipts!