Business Mileage Logbook in Canada: What to Record

Short answer

A business mileage logbook that follows CRA guidance records the date, destination, purpose and kilometres driven for every business trip. It also records the vehicle’s odometer reading at the start and end of the fiscal period. After one full-year base-year logbook, a three-month sample log may be used if business use stays within 10%. (Source: CRA – Motor vehicle records)

Why the logbook matters

If you are self-employed and use a vehicle to earn business income, you may be able to deduct part of the cost of running it on Form T2125. The deductible share depends on how much of your driving was for business. The logbook is the record that shows it.

CRA’s Guide T4002 says you can deduct motor vehicle expenses only when they are reasonable and you have receipts to support them. (Source: CRA – Guide T4002, Chapter 3) Receipts show what the vehicle cost. The logbook shows how much of that cost relates to business.

This guide is about the record itself. For which vehicle costs are commonly claimed, see our small business tax deductions guide. For ride-sharing and delivery drivers, see our Uber and DoorDash deductions guide.

What each trip entry should include

CRA’s motor vehicle records page says that for each business trip, you should list (Source: CRA – Motor vehicle records):

A clear purpose is the part people most often skip. “Meeting” on its own says little. Noting who you met or what you delivered, and why, connects the trip to your business. Writing it at the time is easier than reconstructing it months later.

Odometer readings for the year

CRA also asks you to record each vehicle’s odometer reading at the start and end of the fiscal period. (Source: CRA – Motor vehicle records) The difference is your total kilometres for the year. Comparing business kilometres from the log with total kilometres gives your business-use percentage.

If you use more than one vehicle for business, CRA says to keep a separate record for each vehicle, showing total and business kilometres. (Source: CRA – Motor vehicle records)

If you buy, sell or replace a vehicle during the year, record the odometer reading on the day it starts or stops being used, so that each vehicle’s total is complete.

Full-year logbook or simplified logbook

The base year

CRA’s simplified approach starts with one complete logbook covering a full 12-month period. (Source: CRA – Motor vehicle records) This is called the base year. It establishes your normal pattern of business use.

The sample period

After you have a base-year logbook, CRA allows you to keep a log for a sample period of three continuous months in a later year. The sample can be used to estimate business use for that year if usage is within the same range, meaning within 10% of the base-year results. (Source: CRA – Motor vehicle records)

CRA’s formula

CRA gives this calculation for projecting annual business use from the sample period (Source: CRA – Motor vehicle records):

(Sample year period % ÷ Base year period %) × Base year annual % = Calculated annual business use

The “base year period %” is business use during the same three months of the base year. If your driving pattern changes, for example you take on a new route or client base, the simplified approach may no longer fit. Check the CRA guidance, and go back to a full-year log if needed.

Receipts to keep with your logbook

Guide T4002 lists these motor vehicle expenses that may be deductible. (Source: CRA – Guide T4002, Chapter 3) Keep receipts or statements for each:

• licence and registration fees
• fuel and oil costs
• electricity costs for zero-emission vehicles
• insurance
• interest on money borrowed to buy a motor vehicle
• maintenance and repairs
• leasing costs

Capital cost allowance on the vehicle itself is claimed separately. Keep the purchase documents for the vehicle with your long-term records.

Keeping the logbook

• Base-year logbook: CRA says to keep the full 12-month logbook for six years from the end of the tax year for which it is last used. (Source: CRA – Motor vehicle records)
• Other records: the general CRA rule is six years from the end of the last tax year the records relate to. (Source: CRA – Where to keep your records and for how long)
• Paper or digital: the CRA pages we reviewed describe what the log must contain, not a required format. If you keep it electronically, the CRA requires electronic records to stay in an electronically readable format. (Source: CRA – Acceptable formats and imaging paper documents) Back them up.

When your return is being prepared, you may need to share the logbook and receipts. Do not email banking credentials or passwords. For SINs, employee tax information, and full tax slips, contact us first for instructions on the safest way to send documents.

Mileage logbook checklist

• Odometer reading recorded on the first day of the fiscal period
• A separate log for each vehicle used for business
• For every business trip: date, destination, purpose and kilometres
• Purposes specific enough to connect each trip to your business
• Odometer reading recorded on the last day of the fiscal period
• Business kilometres and total kilometres totalled for each vehicle
• Receipts filed for fuel, insurance, repairs, licence and registration, loan interest or lease payments
• If using the sample method, a base-year log on file and a three-month continuous sample completed
• If using the sample method, the result checked against the 10% range
• Base-year logbook kept for six years after the last year it is used

Free downloadable template

The Mileage Logbook (XLSX) is a spreadsheet with columns for the date, destination, purpose and kilometres of each trip, and space for start and end odometer readings. The Mileage Logbook Checklist (PDF) is a one-page reminder of what to record and which receipts to keep.

Download the Mileage Logbook (XLSX) and Download the Mileage Logbook Checklist (PDF). No email address required.

This template helps organize records. It does not determine eligibility, deductions, tax owing, or filing requirements.

Frequently asked questions

Do I have to keep a full logbook every year?

Not necessarily. CRA allows a three-month sample log in later years once you have a full 12-month base-year logbook, if business use stays within 10% of the base year. (Source: CRA – Motor vehicle records)

Is a monthly total of kilometres enough?

CRA’s guidance asks for the date, destination, purpose and kilometres of each business trip, not only totals. (Source: CRA – Motor vehicle records)

I use two vehicles for my business. Can I combine them?

No. CRA says to keep a separate record for each vehicle, showing total and business kilometres. (Source: CRA – Motor vehicle records)

Can I use a phone app instead of a paper logbook?

The CRA pages reviewed for this article do not require a specific format. Whatever tool you use should capture every required field and the odometer readings, and electronic records must stay readable. (Source: CRA – Acceptable formats and imaging paper documents)

Do I still need fuel and repair receipts if I have a logbook?

Yes. Guide T4002 says vehicle expenses can be deducted only when they are reasonable and supported by receipts. (Source: CRA – Guide T4002, Chapter 3)

Official sources

• Canada Revenue Agency, Motor vehicle records: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses/motor-vehicle-records.html
• Canada Revenue Agency, Motor vehicle expenses: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses.html
• Canada Revenue Agency, Guide T4002, Chapter 3 – Expenses: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-5.html
• Canada Revenue Agency, Acceptable format, imaging paper documents and backing up electronic files: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/acceptable-format-imaging-paper-documents-backing-electronic-files.html
• Canada Revenue Agency, Where to keep your records, for how long and how to request permission to destroy them early: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/where-keep-your-records-long-request-permission-destroy-them-early.html