Tool, rates checked October 9, 2026
Vehicle expense calculator
Your business-use percentage and the share of your car costs it makes deductible. Canada uses the T2125 method; in the United States you also see the IRS standard rate next to actual expenses.
Odie logs these kilometres as you drive. Get it on the App Store, free for 40 automatic trips a month.
Where the numbers come from
The share is business distance over total distance for the year. The total comes from your odometer: the CRA asks for the reading at the start and end of the year (motor vehicle records), and Schedule C, Part IV, asks for total, business and commuting miles (Schedule C instructions).
The business distance comes from your log: each business trip with its date, destination, purpose and distance. The commute from home to a regular workplace is personal in both countries and stays out of it.
The costs are what you paid to run the car in the year. In Canada the result goes on the T2125 (the CRA on motor vehicle expenses), with capital cost allowance worked out separately; see capital cost allowance for vehicles.
Questions
How do I calculate business use of a vehicle?
Divide the kilometres or miles you drove for business in the year by the total you drove, from odometer readings at the start and end of the year. The CRA’s own example: 27,000 business km out of 30,000 km is 90% business use.
Can I deduct my car at the CRA per-kilometre rate if I am self-employed?
No. In Canada the self-employed deduct the business share of real costs on the T2125. The 73¢ and 67¢ rates are what an employer can pay an employee tax-free.
Which costs go in?
Fuel or charging (see charging an EV as a vehicle expense), insurance, licence and registration, maintenance and repairs, loan interest or lease payments. Capital cost allowance (Canada) or depreciation (US) also counts, but it depends on the purchase price and earlier years, so this calculator leaves it out. Business parking and tolls are added in full, not as a share.
Standard rate or actual expenses in the United States?
Either, on Schedule C, chosen in the first year the car is used for business. This calculator shows both so you can compare: business miles × 76¢ (Jul 1 to Dec 31, 2026), or the business share of actual costs. See standard rate or actual expenses.
Informational, not tax advice. Your accountant knows your situation.
Your next work trip can log itself.
Odie is on the App Store, free to start.
