How SnapBooks calculates your vehicle deduction
CRA uses the actual expense method for self-employed T2125 filers - not the 73ยข/km employee allowance rate.
Business-use % = Business KM logged / Total KM (odometer)
Vehicle costs = Insurance + Loan interest + Fuel receipts + Maintenance + Registration
Your deduction = Business-use % ร Vehicle costs
Fuel and maintenance receipts are automatically included when you tag them as Vehicle - Fuel or Vehicle - Maintenance.
Common questions
Does CRA require a mileage logbook?
Yes. CRA requires a contemporaneous logbook to support any vehicle expense claim on T2125. "Contemporaneous" means recorded at the time of the trip, not reconstructed later. SnapBooks makes this easy with a quick trip entry form.
What is the CRA mileage rate for 2026?
The 73ยข/km (first 5,000 km) and 67ยข/km (after) rates are the CRA employee allowance - they apply to employees, not self-employed T2125 filers. Self-employed Canadians use the actual expense method: business-use % x total vehicle costs.
How long do I need to keep my logbook?
CRA requires you to keep vehicle logbooks and supporting documents for 6 years from the end of the last tax year they relate to. SnapBooks retains your data for the duration of your account.
Can I claim vehicle expenses without a logbook?
No. Without a contemporaneous logbook, CRA can deny your entire vehicle expense claim on audit. The logbook is mandatory, not optional.