Boost Your Tax Refund with a Detailed Mileage Log Template

Who Should Keep a Mileage Log

Anyone who uses a personal vehicle for income-earning or deductible activities should maintain a mileage log. This includes:

• Self-employed individuals and contractors – to support business expense claims for vehicle use.

• Employees who use their own car for work – when not fully reimbursed by the employer.

• Small business owners – to track company vehicle use and separate business from personal driving.

• Commissioned salespeople and consultants – who regularly travel to meet clients.

• Individuals claiming medical, charitable, or moving expenses – when eligible for mileage deductions under CRA rules.

Keeping a mileage log ensures accurate, defensible records that can help maximize deductions and protect you in case of a CRA review.

Types of Deductible Kilometres

A good mileage log template allows you to separate personal driving from various categories of deductible kilometres, such as:

Business Kilometres

Trips made to earn income, such as:

• Visiting clients or customers

• Traveling to a secondary work location

• Deliveries, site visits, or picking up supplies

Medical Kilometres

In certain situations, travel for medical care can be included in medical expense claims (subject to tax rules and distance thresholds). This may include trips to hospitals, specialists, or clinics.

Charitable Kilometres

If you volunteer for a registered charity, some of your driving may be treated as a charitable expense, depending on the applicable tax rules and whether you are reimbursed.

Moving Kilometres

When you move at least a specified distance closer to a new job, business, or post-secondary institution, some moving-related trips may qualify as deductible moving expenses.

By recording each type of trip separately, you can ensure you are not missing legitimate deductions.

How a Mileage Log Can Increase Your Tax Refund

A detailed mileage log also plays a key role in determining the business-use percentage of your vehicle.

Example:

• Total kilometres driven in a year: 24,000 km

• Business kilometres (based on your log): 9,600 km

Business use = 9,600 ÷ 24,000 = 40%

If your total eligible annual vehicle expenses are $7,500 (fuel, insurance, maintenance, repairs, lease or capital cost allowance, etc.), you may be able to claim:

$7,500 × 40% = $3,000 of vehicle expenses against your income.

If your marginal tax rate is 30%, that $3,000 deduction could reduce your tax payable by approximately:

$3,000 × 30% = $900

Without a reliable log, you may feel uncomfortable claiming that amount, or it may be challenged and reduced on review.

(Figures above are for illustration only; actual tax impact depends on current rules and your specific situation.)

What to Record in a Mileage Log Template

To be useful and defensible, your mileage log should include the following information for each trip:

• Date of the trip

• Starting location

• Destination / ending location

• Purpose of the trip

  • e.g., “Client meeting – downtown Vancouver”, “Hospital visit”, “Volunteer shift at charity”

• Odometer reading at the start and end, or

• Total kilometres driven for that trip

• Trip category (business, medical, charitable, or moving)

Consistency is critical. Short, accurate entries made at the time of the trip are much stronger than estimates written down weeks or months later.

Protection in Case of a Review or Audit

Motor vehicle expenses are a common area of interest for tax authorities. When your return is reviewed, they will often ask:

• How did you calculate business use?

• Do you have a mileage log or logbook?

• Can you show a sample period or a full-year log?

If you have a complete mileage log template filled in throughout the year, you are in a much better position. Your claim is supported by documentation, and you reduce the risk of:

• Your vehicle claim being reduced, or

• The deduction being denied entirely.

A proper mileage log gives you confidence that your numbers are reasonable and well-documented.

Paper, Spreadsheet, or App?

Your mileage log can be kept in any format that works for you, as long as it remains accurate, complete, and accessible:

• A printed template kept in the vehicle

• A spreadsheet (Excel or Google Sheets)

• A digital app that allows export or printing of reports

The best format is the one you can maintain consistently. The key is regular, timely entries, not the specific tool.

Conclusion

Using a mileage log template is a simple habit that can deliver meaningful results at tax time. By recording your trips in a structured way, you can:

• Capture every eligible kilometre

• Support your vehicle expense claims with proper documentation

• Potentially increase your tax refund

• Reduce the risk of adjustments during a review or audit

If you want to improve your tax position this year, start with your records. A detailed mileage log template is an easy, practical step toward a better refund.