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Deductions · 8 min

Every deduction Canadian small businesses miss

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8 grants every Canadian founder should know about

Deductions · 7 min

The Small Business Deduction, fully explained

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Deductly is a discovery tool, not a tax filer. Information is provided for educational purposes. Always confirm program details and eligibility with a qualified Canadian accountant before applying or claiming any benefit.

DeductlyCA
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DEDUCTIONAll of Canada

Motor Vehicle Expense Deduction

Last verified: June 2026

Deduct all business-related vehicle costs: fuel, insurance, repairs, lease payments, and depreciation: based on the percentage of kilometres driven for business purposes.

See if I qualify
Estimated value
Typically $4,000–$15,000 per year
Approval likelihood
High
Ready to apply score
75/100
Documents needed
4

Eligibility

  • Business types:incorporated, self-employed, partnership
  • Industries:All industries
  • Provinces:All of Canada

What you'll need

  • Mileage logbook (date, destination, purpose, km)
  • All vehicle expense receipts
  • Lease or financing agreements
  • Insurance documents

How to apply

  1. 1Start a mileage log immediately (CRA requires it)
  2. 2Track all vehicle-related expenses
  3. 3Calculate business-use percentage at year-end
  4. 4Claim on T2125 or corporate return
Deadline:Annual: claim on your tax return

Is your business a fit for Motor Vehicle Expense Deduction?

Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.

Check my eligibility

Related programs

DEDUCTION

Small Business Deduction (SBD)

Up to $30,000 per year in tax savings

DEDUCTION

Home Office Expense Deduction

Typically $3,000–$12,000 per year

DEDUCTION

Accelerated Investment Incentive (AII)

30–100% of asset cost in year 1

A monthly digest

New programs, in your inbox.

We are in beta. Drop your email and we will write when the first digest is ready. Monthly cadence, easy unsubscribe.

Deductly CA

Every Canadian grant, tax credit, and deduction your business qualifies for. In one ranked list.

Start the assessment
Product
  • Eligibility quiz
  • All programs
  • Watch (live changes)
  • The funding journey
  • When to apply
  • Stackability map
  • Document checklist
  • Calculators
  • Tracker
  • Learn
  • Pricing
Resources
  • For accountants
  • Public API
  • RSS feed
  • What's new
  • Roadmap
  • Press
  • vs ChatGPT
  • vs Benefits Finder
By province
  • Ontario
  • British Columbia
  • Alberta
  • Quebec
  • Manitoba
  • Saskatchewan
By industry
  • Technology & Software
  • Manufacturing
  • Retail & E-commerce
  • Food & Beverage
  • Professional Services
  • Creative & Media
For
Women entrepreneursNewcomersIndigenous businessYouth foundersBlack entrepreneursFirst-hire employers
Recent guides
Deductions · 8 min

Every deduction Canadian small businesses miss

Grants · 10 min

8 grants every Canadian founder should know about

Deductions · 7 min

The Small Business Deduction, fully explained

© 2026 DeductlyPrivacyTermsAboutFrançaisContact
All systems operational

Deductly is a discovery tool, not a tax filer. Information is provided for educational purposes. Always confirm program details and eligibility with a qualified Canadian accountant before applying or claiming any benefit.