How to track mileage and vehicle expenses correctly as a self-employed worker in Quebec

For self-employed workers in Quebec, vehicle expenses are often a major cost: fuel, maintenance, insurance, financing. To deduct them correctly, you need a mileage log and a defensible allocation method.

Here is a practical approach that works for drivers, contractors, and consultants.

1. Why a mileage log is essential

Revenu Quebec and the CRA expect you to clearly distinguish:

• Kilometres driven for business (clients, sites, deliveries, suppliers).
• Personal kilometres (groceries, family, leisure).

Without a log, it is hard to justify your business-use percentage in an audit.

2. What to record in your mileage log

For each business trip, note:

• Date.
• Starting point and destination.
• Purpose (client name, job site, supplier, etc.).
• Distance in kilometres.

You can use:

• A paper notebook.
• A spreadsheet (Excel, Google Sheets).
• A dedicated mobile app.

3. Numeric example

In 2025 your odometer shows:

• 25,000 km at the start of the year.
• 55,000 km at the end of the year.

Total distance driven: 30,000 km.

Your mileage log shows:

• 18,000 km for business.
• 12,000 km personal.

Business-use percentage: 18,000 / 30,000 = 60%.

You may then deduct 60% of eligible vehicle expenses.

4. Vehicle expenses to track

Include in your tracking:

• Fuel.
• Maintenance and repairs.
• Auto insurance.
• Registration and licence fees.
• Interest on car loans or lease payments.
• Business parking.

Keep all invoices and proofs of payment in a dedicated vehicle folder.

5. Connecting the vehicle to your bookkeeping

In your business records:

• Record the full expense amounts (for example, $4,000 fuel, $1,500 maintenance, etc.).
• Then apply the business-use percentage (60% in the example) to determine the deductible portion.

For a broader overview of business expenses, see:

• Self-employed in Quebec: which business expenses can you really deduct in 2025?.

6. Mistakes to avoid

• Using an arbitrary percentage with no mileage log.
• Deducting 100% of fuel even though the vehicle is used personally.
• Forgetting items like insurance or registration when calculating total vehicle costs.

Call to action

If you are self-employed in Quebec and find mileage tracking overwhelming, TaxCove can provide a simple log template that fits into your bookkeeping system. To get started, visit the secure tax intake form page and tell us about your typical driving patterns.

Important notice

This article provides general information only and does not replace personalized tax advice. Vehicle rules can vary by industry and compensation model. Always validate your approach with a professional or directly with Revenu Quebec and the CRA.