Vehicle Expense Calculator Canada 2025
Calculate your vehicle expense deduction — employee (T2200), self-employed (T2125), or CCA depreciation. Includes 2025 CRA rates, interest and lease caps, and Class 54 zero-emission write-off.
Estimates use 2025 CRA rates and limits. Actual deduction depends on your logbook and receipts. Not financial advice.
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How to Use This Calculator
Tab "Employee (T2200)"
For employees who use their personal vehicle for work. Enter your total km driven for the year and business km (excluding commuting). Add your actual expenses — gas, insurance, repairs, parking, loan interest, and lease payments. The calculator computes your business-use percentage and deductible amount. You need a signed Form T2200 from your employer. Claim on Form T777, line 22900.
Tab "Self-Employed"
For self-employed individuals and sole proprietors. Same inputs as the employee tab, but reported on Form T2125 (Statement of Business or Professional Activities). No T2200 needed. You can claim additional expenses like licence/registration fees and car washes. Select your province and income to estimate tax savings at your marginal rate.
Tab "CCA on Vehicle"
Calculate Capital Cost Allowance (depreciation) on your vehicle. Enter the purchase cost, select the CCA class (Class 10 for regular, Class 10.1 for luxury vehicles over $37K, Class 54 for zero-emission), and your business-use percentage. The calculator shows a 5-year declining balance schedule with annual CCA and business CCA amounts.
The Formulas
Business use % = Business km / Total km
Deductible vehicle expenses:
Deduction = (Gas + Insurance + Repairs + Parking + Interest* + Lease*) x Business use %
*Interest capped at $300/month; Lease capped at $950/month
CRA simplified method:
Deduction = (First 5,000 km x $0.72) + (Remaining km x $0.66)
CCA (declining balance):
Year 1: CCA = Depreciable base x Rate x 50% (half-year rule, except Class 54)
Year 2+: CCA = UCC (undepreciated capital cost) x Rate
Business CCA = CCA x Business use %
The business-use percentage is the single most important number. CRA can deny your entire claim without a logbook supporting this percentage. Interest and lease deductions have monthly caps regardless of your actual payments.
Example
Marcus — Employee in Toronto, 25,000 km total, 18,000 business km
Marcus is a sales representative who uses his personal car for client visits. His employer signed a T2200 confirming he is required to use his own vehicle. He drove 25,000 km total, with 18,000 km for business.
In Marcus's case, the simplified method ($0.72 x 5,000 + $0.66 x 13,000 = $12,180) gives a larger deduction than the detailed method ($6,048). However, most taxpayers with high actual expenses — especially those with loan interest or lease payments — will find the detailed method more beneficial.
2025 Vehicle Expense Key Numbers
| Item | Amount |
|---|---|
| CRA simplified rate (first 5,000 km) | $0.72/km |
| CRA simplified rate (after 5,000 km) | $0.66/km |
| Loan interest cap | $300/month ($3,600/year) |
| Lease payment cap | $950/month ($11,400/year) |
| Class 10 CCA rate | 30% declining balance |
| Class 10.1 cost cap | $37,000 (+ tax) |
| Class 54 (zero-emission) write-off | 100% first year, up to $61,000 |
| Half-year rule | 50% CCA in Year 1 (Class 10/10.1 only) |
| Employee form required | T2200 (from employer) |
| Employee claim form | T777, line 22900 |
| Self-employed claim form | T2125 (business income) |