KM tracking for Canadian freelancers: claim every business trip

Vehicle expenses are one of the most commonly missed deductions for Canadian freelancers and self-employed workers. If you drive to meet clients, pick up supplies, or attend professional events, a portion of those kilometers is deductible — but only if you keep a log.

The CRA is strict about mileage claims. Without a written record, you cannot deduct vehicle expenses at all. The good news: keeping that record does not have to be complicated.

What counts as a business kilometer?

The CRA allows deductions for vehicle use that is "reasonable and necessary" for your business. This generally includes:

• Driving to and from client offices or job sites
• Trips to pick up supplies, equipment, or materials
• Attending professional development, conferences, or networking events
• Meetings with your accountant, lawyer, or other professionals
• Deliveries related to your work

Your daily commute from home to a fixed office does not count. But if your home is your principal place of business (common for freelancers), trips from home to meet clients are generally deductible.

The CRA mileage rate (2025)

The CRA publishes a standard per-kilometer rate each year for reimbursing employees. Self-employed individuals can use this as a simplified method instead of tracking actual vehicle costs.

At these rates, a freelancer who drives 200 business kilometers per month accumulates roughly $1,700 in deductible vehicle expenses per year — money most people simply leave on the table.

What you need to document

The CRA requires a logbook that records, for each business trip:

• The date of the trip
• The destination or purpose
• The number of kilometers driven
• Your odometer reading at the start of the year (and end, if you stop mid-year)

You also need to track your total kilometers driven during the year — not just business ones. The deductible portion is calculated as: (business km) ÷ (total km) × actual vehicle costs.

How CURA tracks your business kilometers

CURA includes a built-in KM tracking feature designed for exactly this use case. For each trip you log, you record:

• The date
• The distance in kilometers
• An optional note (client name, purpose)

You set your per-km reimbursement rate once in settings — either the CRA standard rate or a custom amount if your situation differs. CURA then calculates the reimbursable amount for each trip and includes a full mileage summary in your monthly report email.

At the end of the year, you have a clean, dated log of every business trip — exactly what an accountant needs to file your vehicle deduction without question.

Simplified method vs. actual expenses

You have two ways to claim vehicle expenses:

• Simplified (per-km rate): Multiply your business kilometers by the CRA rate. Simple, no receipts for gas/insurance needed.
• Actual expenses: Track all vehicle costs (gas, insurance, maintenance, depreciation) and deduct the business-use percentage. More paperwork, but potentially higher deduction for high-cost vehicles.

For most freelancers, the simplified method is the right choice. It requires nothing more than a log of your kilometers — which CURA maintains for you automatically.

Tips for making it stick

• Log trips the same day. Memory fades quickly — a note right after you park takes ten seconds.
• Note the purpose, not just the destination. "Client meeting — Acme Corp" is better than just "Downtown" if the CRA ever asks.
• Track total annual km too. You need this to calculate your business-use percentage even with the simplified method.
• Don't guess. Estimates without a log are disallowed at audit. A real record, even a simple one, is always valid.