Motor Vehicle Expenses for Self-Employed Canadians: Chart A Explained (Free Worksheet)

If you use a vehicle for your business, Chart A on Form T2125 is where those costs get converted into a deduction — but the CRA wants specific kilometre records and expense totals before your accountant can run the calculation. This guide walks through exactly what Chart A asks for, the current prescribed limits, and gives you a free worksheet to fill in before tax time.

It starts with your kilometre log

Everything on Chart A flows from two numbers:

• Kilometres you drove in the year to earn business income
• Total kilometres you drove in the year

Dividing the first by the second gives your business-use percentage, which is applied to your total vehicle expenses for the year. Without a kilometre log supporting both numbers, the CRA can reduce or deny your entire vehicle expense claim — this is one of the most closely reviewed figures on the return, especially when the claimed percentage is high and round (90%, for example) with no supporting log.

What Chart A asks for

Once your kilometres are recorded, Chart A has you total up your annual vehicle costs:

• Fuel and oil
• Interest on a vehicle loan (calculated separately on Chart B, then carried to Chart A)
• Insurance
• Licence and registration
• Maintenance and repairs
• Leasing costs (calculated separately on Chart C, then carried to Chart A)
• Electricity, if you drive a zero-emission vehicle
• Other expenses

Two more amounts are added after your business-use percentage is applied, since they're fully deductible rather than prorated:

• Business parking fees
• Supplementary business insurance

Capital cost allowance (depreciation) on an owned vehicle is calculated separately in Area A of the T2125 and isn't part of Chart A.

Chart B and Chart C: the amounts that change every year

If you financed or leased your vehicle, you can't simply enter your full annual payments on Chart A — the CRA caps the deductible amount, and those caps are announced annually by the Department of Finance.

For 2026:

• Vehicle loan interest is capped at $350 per month for new automobile loans entered into on or after January 1, 2026.
• Leasing costs are capped at $1,100 per month, before tax, for new leases entered into on or after January 1, 2026.
• The capital cost ceiling for Class 10.1 passenger vehicles increased to $39,000 (before tax) for 2026, up from $38,000.
• The ceiling for Class 54 zero-emission passenger vehicles remains $61,000 (before tax) for 2026.

Because these figures change from year to year, your accountant needs your raw numbers — total interest paid, total lease charges, the vehicle's manufacturer's suggested list price, and the relevant dates — rather than a pre-calculated amount. Our worksheet is built to collect exactly that.

What to gather before your appointment

• Vehicle year, make, and model
• Kilometres driven to earn business income, and total kilometres driven, for the year
• Annual totals for fuel and oil, insurance, licence and registration, and maintenance and repairs
• If financed: total interest paid, the date the loan began, and the number of days interest was paid or payable
• If leased: total lease charges paid this year, lease payments deducted in previous years, total days leased, the manufacturer's suggested list price, and the lease start date
• Business parking fees and any supplementary business insurance
• Your mileage log and receipts, in case the CRA asks for them

Common mistakes to avoid

• No mileage log at all. Without one, you can't support the two kilometre figures Chart A requires, and the CRA can deny the claim.
• An inflated business-use percentage. High, round percentages without a supporting logbook are a common trigger for review.
• Including GST/HST in the lease cap calculation. The prescribed leasing limit applies to the pre-tax payment; sales tax on the lease is recovered separately as an input tax credit.
• Using the full lease or loan payment instead of the prescribed limit. Your accountant needs the raw figures — including the MSRP for leases — to apply the correct cap.
• Carrying forward the wrong opening UCC balance if you owned the vehicle in a previous year and are claiming CCA.

Get organized in one page

Our free Canada Motor Vehicle Information Sheet mirrors Chart A, B, and C, collecting the raw numbers your accountant needs without trying to calculate the prescribed limits itself — those change every year, so it's safer to leave that math to your preparer. Fill it in on your computer or print it and write by hand, then hand it to your accountant or tax preparer.

Frequently asked questions

Do I need a mileage log, or is an estimate at year-end enough?

The CRA expects an actual record of the kilometres you drove for business and in total. An estimate reconstructed at year-end is far weaker support than a logbook kept throughout the year.

What if I use more than one vehicle for my business?

Complete a separate set of Chart A figures for each vehicle.

Are the interest and leasing limits the same every year?

No — the Department of Finance announces updated limits annually, which is why our worksheet asks for raw figures rather than a final deductible amount.

Can I claim parking and supplementary insurance in full?

Yes. Unlike most vehicle expenses, business parking fees and supplementary business insurance aren't reduced by your business-use percentage.

How Heightly fits in

Heightly is built for unincorporated sole proprietors in Canada and the U.S. who want their bank and credit card statements organized into a Tax Prep Report — without paying for a full bookkeeping subscription. Upload your statements, and Heightly categorizes your transactions and aligns them to CRA Form T2125 or IRS Schedule C, flagging anything that needs your input along the way.

Heightly can identify fuel, insurance, and repair payments from your statements — but it can't see your odometer, your lease agreement, or your loan terms. The worksheet above fills that gap, so your finished report is that much more complete when it reaches your accountant.

See how Heightly works or try a free preview with your own statements.