Tax planning can be a daunting task for many individuals, especially when it comes to tracking vehicle expenses. One of the most effective tools for managing vehicle expenses and maximizing tax deductions is a Vehicle Mileage Log. By keeping a detailed record of all your business-related travel, you can ensure that you are accurately reporting your mileage and claiming the appropriate deductions on your tax return.
To help you make the most of your Vehicle Mileage Log for tax planning purposes, we have compiled some expert advice on how to effectively use this tool:
🧾 Why Mileage Tracking Matters for Tax Deductions
The Canada Revenue Agency (CRA) allows taxpayers to claim motor vehicle expenses when they use their personal vehicle for business or other eligible purposes.
However, to claim these deductions, you must maintain a detailed mileage logbook.
A proper mileage log template helps:
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Track each trip’s date, start and end location, purpose, and kilometers driven
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Separate business and personal mileage
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Provide proof of accuracy if CRA requests supporting documentation
Without a complete log, the CRA can deny vehicle deductions — even if the claim seems reasonable.
📈 How Mileage Deductions Increase Your Tax Refund
Each kilometer driven for work can reduce your taxable income.
For 2025, CRA’s automobile allowance rates are approximately:
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$0.70/km for the first 5,000 kilometers
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$0.64/km for each additional kilometer
(Rates vary annually — always verify the latest CRA mileage rate.)
Example:
You drive 8,000 km for work during the year.
Mileage claim = (5,000 × $0.70) + (3,000 × $0.64) = $5,620
If your marginal tax rate is 30%, that deduction could increase your refund by roughly $1,686 — just for tracking mileage correctly!
🧭 Types of Mileage You Can Deduct
A mileage log template helps track four key types of deductible mileage recognized by CRA:
| Purpose | Description | Example Use |
|---|---|---|
| Business Mileage | Travel for work, client visits, training, or deliveries | Driving to a client meeting in Burnaby |
| Medical Mileage | Travel for medical appointments not reimbursed | Trips to hospitals or specialists |
| Charitable Mileage | Travel for volunteer activities | Driving to a registered charity event |
| Moving Mileage | Relocating ≥40 km closer to a new job/school | Moving from Surrey to Burnaby for a new position |
📚 What to Include in Your Mileage Log Template
Your mileage log must include:
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📅 Date of each trip
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📍 Starting and ending locations
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🚗 Purpose of trip (e.g., client visit, donation drop-off)
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🔢 Kilometers driven (start odometer, end odometer, total)
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⏱️ Trip type (business, medical, charity, or moving)
💡 Tip: Always record mileage as soon as you complete each trip — delayed entries are less reliable and may be disallowed by CRA.
🧠 Avoiding CRA Audit Issues
Failing to keep accurate vehicle records is one of the most common audit triggers for self-employed individuals and small businesses.
CRA auditors typically request a 12-month mileage log with consistent odometer readings and trip details.
A digital or printable mileage log ensures you have solid evidence if CRA questions your claim.
Using tools like Excel, Google Sheets, or mobile apps (integrated with your log template) keeps your documentation safe and easy to update.
🪙 The Bottom Line
A mileage log template isn’t just a record-keeping tool — it’s a way to:
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Lower your taxable income
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Increase your tax refund
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Stay compliant with CRA rules
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Avoid unnecessary audit risk
If you drive for business, medical, charitable, or moving purposes, start logging your mileage today.
Even small, consistent entries can lead to thousands in legitimate deductions each year.
💼 Get Expert Help With Mileage and Tax Deductions
At Cloud Accounting & Tax Services Inc. | CLaTAX, we help clients across British Columbia maintain accurate records and claim every eligible tax deduction.
contact us anytime to discover more on Vehicle Mileage Log usages.
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💼 About the Company
Cloud Accounting & Tax Services Inc. | CLaTAX
Address: Glenlyon Corporate Centre, 4300 N Fraser Wy #163, Burnaby, BC V5J 5J8
📞 +1 (855) 915-2931
🌐 www.claccounting-tax.ca
✉️ info@cloudaccountings.net
Cloud Accounting & Tax Services Inc. | CLaTAX is one of British Columbia’s leading accounting and tax firms, providing reliable, cloud-based financial solutions to individuals and businesses across Canada. Founded and led by Anamika Biswas, CLaTAX is built on integrity, transparency, and innovation — delivering professional accounting, bookkeeping, payroll, GST/HST filing, and corporate tax services.
With over a decade of proven experience and hundreds of satisfied clients, CLaTAX helps business owners and individuals achieve financial clarity and compliance through expert guidance and technology-driven solutions.
