Vehicle expenses

If you choose the detailed method to calculate vehicle expenses, you must keep all receipts and records for the vehicle expenses you incurred for moving expenses or for northern residents deductions during the tax year; or during the12-month period you choose for medical expenses.

Vehicle expenses include:

* Operating expenses such as fuel, oil, tires, licence fees, insurance, maintenance, and repairs.
* Ownership expenses such as depreciation, provincial tax, and finance charges.

You also have to keep track of the number of kilometres you drove in that time period, as well as the number of kilometres you drove specifically for the purpose of moving or medical expenses, or for the northern residents deductions. Your claim for vehicle expenses is the percentage of your total vehicle expenses that relate to the kilometres driven for moving or medical expenses, or for northern residents deductions.

For example, if you drove 10,000 km during the year, and half of that was related to your move, you can claim half of the total vehicle expenses on your tax return.

If you choose the simplified method of calculating vehicle expenses, you do not need to keep receipts. Instead, you must keep track of the number of kilometres driven during the tax year for your trips relating to northern residents deductions and moving expenses, or the 12-month period you choose for medical expenses. To determine the amount you can claim for vehicle expenses, multiply the number of kilometres by the cents/km rate from the chart below for the province or territory in which the travel begins.

 

Province or territory Cents/kilometre
Alberta

45.5

British Columbia

45.5

Manitoba

44.0

New Brunswick

45.5

Newfoundland and Labrador

49.0

Northwest Territories

52.5

Nova Scotia

46.0

Nunavut

52.5

Ontario

47.0

Prince Edward Island

45.5

Quebec

50.0

Saskatchewan

43.0

Yukon

55.0