Yes, gig workers in Canada can deduct fuel, maintenance, and repair costs separately from other vehicle expenses, or they can use the CRA's simplified vehicle expense method. The Canada Revenue Agency (CRA) allows you to claim actual expenses or use a per-kilometre rate (currently 70 cents per km for 2024, adjusted annually). Choosing between these methods depends on your record-keeping habits, vehicle condition, and total driving costs. Most gig workers find that separate tracking works best when vehicle maintenance is high, while the per-km method simplifies accounting if you drive consistently. Gig workers have flexibility in how they report vehicle expenses to the CRA: Method 1: Actual Expenses (Detailed Tracking) You track and deduct the real costs you pay throughout the year: Fuel and oil changes Tire replacement and repairs Brake service and mechanical work Car insurance premiums Vehicle registration and licensing fees Depreciation (capital cost allowance or CCA) Parking fees and tolls Vehicle loan interest (if self-employed) Method 2: Simplified Per-Kilometre Rate You multiply eligible work kilometres by the CRA-approved rate (70 cents/km for 2024).
The CRA adjusts the simplified vehicle expense rate annually. For 2024, it is 70 cents per kilometre. The 2026 rate will be announced by the CRA in early 2026. You can track actual expenses instead if the rate changes unfavorably.
No, you must choose one method per tax year. You cannot claim actual fuel and maintenance expenses in addition to the per-kilometre allowance. If you switch methods, you must use actual expenses going forward, as you cannot return to the per-kilometre method once you claim CCA.
You do not need fuel receipts, but you must keep a logbook or mileage record showing work kilometres driven, dates, and destinations. The CRA may ask to see this record during an audit to verify your claimed kilometres are accurate.
Yes, vehicle loan interest is deductible if you used the actual expense method and the vehicle is used for gig work. You cannot claim loan interest using the per-kilometre method. Apply your work-use percentage to the annual interest amount.
Claiming CCA reduces your vehicle's adjusted cost basis, which means you will owe capital gains tax on a larger portion of any profit when you sell it. This may offset some of your tax savings from claiming CCA deductions over time.