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 Québec 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.

Need help with your situation?

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 Québec and the CRA.