No. That rate is for employers paying employees. Self-employed drivers claim actual vehicle costs times business use. Here's why, and how the two compare.
Search "CRA mileage rate 2026" and you'll find it quickly: 73 cents per kilometre for the first 5,000 km and 67 cents after that. Many new drivers assume they can multiply their business kilometres by that rate and call it a deduction.
In Canada, that doesn't work for self-employed drivers.
The Department of Finance sets it as the tax-exempt allowance an employer can pay an employee who uses their own car for work. It's the most an employer can reimburse per kilometre without the payment becoming taxable income for the employee.
It isn't a deduction rate for your own business. The US lets self-employed people use a standard mileage rate. Canada doesn't, which is why US apps and videos cause so much confusion.
You claim your actual vehicle costs, multiplied by your business-use percentage:
The CRA says you can deduct only the part of the expenses you paid to earn income, and you need a record of total kilometres and business kilometres to support it.
| Fuel, insurance, repairs, washes | $8,400 |
| Capital cost allowance on the car | $4,000 |
| Total vehicle costs | $12,400 |
| Business use (18,000 ÷ 25,000) | 72% |
| Actual-cost deduction | $8,928 |
| For comparison: 5,000 km × $0.73 + 13,000 km × $0.67 | $12,360 |
The per-km number looks bigger, but it isn't available to you. Claiming it could see the CRA reassess you, and you'd owe the difference plus interest.
Your deduction reflects what you really spend. Drivers with older cars, high insurance or long winter commutes on salty roads often have high real costs, and they're all claimable.
MyGigLedger adds up your real vehicle costs, tracks business and personal kilometres, and applies your business-use percentage automatically. It's the method the CRA actually accepts.
This article is general information based on CRA guidance as of September 29, 2026. It isn't tax advice. Rules change, and your situation may differ, so check with the CRA or a tax professional before you file.
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