If you're an Uber driver, Instacart shopper, DoorDash courier, owner-operator, or self-employed business owner, tracking your mileage correctly can save you thousands of dollars in taxes. The CRA requires accurate records to support motor vehicle expense claims, making a mileage log one of the most important documents for your tax return.
Why Is Mileage Tracking Important?
When you use your vehicle for both personal and business purposes, you can only claim the business-use portion of your vehicle expenses.
These expenses may include:
- Fuel
- Insurance
- Repairs and maintenance
- License and registration fees
- Interest on vehicle loans
- Lease payments
- Vehicle depreciation (CCA)
The percentage you can claim is based on your business kilometres divided by your total kilometres driven during the year.
Formula
Business Use Percentage = Business Kilometres ÷ Total Kilometres × 100
Example:
- Total kilometres driven: 40,000 km
- Business kilometres: 30,000 km
Business Use Percentage = 30,000 ÷ 40,000 = 75%
You can generally claim 75% of eligible vehicle expenses.
What Information Should You Track?
For every business trip, record:
| Information | Example |
|---|---|
| Date | June 15, 2026 |
| Starting Location | Mississauga |
| Destination | Toronto Airport |
| Purpose of Trip | Uber Passenger Pickup |
| Start Odometer | 125,500 km |
| End Odometer | 125,540 km |
| Distance Travelled | 40 km |
CRA Mileage Log Example
| Date | Purpose | From | To | KM |
|---|---|---|---|---|
| June 15 | Uber Pickup | Mississauga | Pearson Airport | 18 |
| June 15 | Uber Trip | Pearson Airport | Downtown Toronto | 32 |
| June 15 | Instacart Delivery | Walmart | Customer Address | 12 |
Daily Total: 62 km
Record Your Odometer Reading
The CRA recommends recording:
Beginning of Year
January 1:
120,000 km
End of Year
December 31:
160,000 km
Total Annual Kilometres:
40,000 km
Without odometer readings, it can be difficult to support your vehicle expense claims during a CRA review.
Best Mileage Tracking Methods
1. Spreadsheet (Excel or Google Sheets)
Simple and free.
Track:
- Date
- Purpose
- Start KM
- End KM
- Distance
Best for:
- New business owners
- Gig workers with lower mileage
2. Mileage Tracking Apps
Popular options include:
- MileIQ
- Driversnote
- Everlance
These apps automatically record trips using GPS.
Benefits:
- Saves time
- Reduces errors
- Creates CRA-ready reports
3. Uber and Delivery Platform Records
Platforms such as:
- Uber Technologies
- Instacart
- DoorDash
provide annual summaries.
However, platform reports alone may not include all business kilometres, such as:
- Driving to busy areas
- Waiting between orders
- Trips to purchase supplies
Keeping your own mileage log is still recommended.
Common CRA Mistakes
❌ No mileage log
❌ Estimating kilometres at tax time
❌ Missing odometer readings
❌ Claiming 100% vehicle use when personal driving occurred
❌ Losing receipts for fuel, repairs, and insurance
How Long Should You Keep Records?
The CRA generally requires taxpayers to keep supporting records for at least six years after the end of the tax year.
Store:
- Mileage logs
- Fuel receipts
- Repair invoices
- Insurance statements
- Lease or loan documents
Final Tip for Gig Workers
If you drive for Uber, Uber Eats, Lyft, DoorDash, SkipTheDishes, or Instacart, start tracking mileage from your first business trip of the year—not at tax season.
A complete mileage log can significantly increase your deductible vehicle expenses and help protect you in the event of a CRA review.
Need help calculating your business-use percentage or claiming vehicle expenses? RC Bookkeeping & Tax Services specializes in tax and bookkeeping support for gig workers, owner-operators, and self-employed Canadians..