Can gig drivers just claim the CRA's 73 cents a kilometre?
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.
Your car is your biggest business asset. The CRA won't let you deduct its full price in the year you buy it. Instead you claim capital cost allowance (CCA), a yearly deduction for depreciation, on line 9936 of your T2125.
Which class your car goes in
- Class 10 (30%): most cars, if the cost before tax is $39,000 or less for vehicles acquired in 2026
- Class 10.1 (30%): passenger vehicles that cost more than $39,000 before tax. Your claim is capped as if the car cost $39,000 plus the sales tax on that amount. Each Class 10.1 car goes in its own class.
- Class 54 (30%): zero-emission passenger vehicles, with a separate limit of $61,000 before tax
A bigger claim in the first year
Normally the half-year rule cuts your first-year CCA in half. For vehicles acquired after 2024, the reaccelerated investment incentive, which became law in March 2026, allows three times that normal first-year amount. For Class 10, that works out to 45% of the cost in year one instead of 15%.
A $30,000 car bought in 2026, 70% business use
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Balance at start of year | $30,000 | $16,500 | $11,550 |
| CCA rate | 45% | 30% | 30% |
| Full CCA | $13,500 | $4,950 | $3,465 |
| Business share you claim (70%) | $9,450 | $3,465 | $2,426 |
CCA is optional. You can claim less than the maximum in a low-income year and save the balance for later, when it might reduce more tax.
Leasing instead?
If you lease, you deduct lease payments instead of CCA. For leases signed in 2026, the deductible amount is capped at $1,100 a month before tax, then multiplied by your business use.
Paying interest on a car loan?
Interest on a loan for a passenger vehicle is deductible up to $350 a month for loans taken out in 2026, again multiplied by your business-use percentage.
Common mistakes
- Claiming the whole purchase price as an expense. It has to go through CCA.
- Forgetting the business-use percentage. CCA is prorated just like fuel.
- Using the wrong class. A $45,000 car doesn't get Class 10 treatment. It's capped in Class 10.1.
The first year you claim CCA, it's worth having a tax professional or good tax software set it up correctly. After that, it rolls forward.
How MyGigLedger helps
MyGigLedger calculates your business-use percentage from your trips and odometer readings, which is the number every CCA, lease and interest calculation depends on.
Sources
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.