Here's something I wish someone had told me when I started driving for SkipTheDishes: your mileage is money. Every kilometre you put on your car while you're working is a deduction the CRA lets you claim, and at $0.73 per kilometre for the first 5,000 km in 2026, it adds up way faster than you'd think.
Drive 15,000 business kilometres this year? That's a $10,300 deduction before you even touch your phone bill, gas receipts, or insurance. The catch? The CRA can ask for a logbook, and if you don't have one, they can deny the whole thing.
I learned this the hard way after my first tax season. I had a rough idea of how much I drove, but "rough idea" doesn't cut it with the CRA. So I spent the next year testing apps, reading the actual CRA rules, and figuring out the easiest way to track everything without it becoming a second job. This post is everything I figured out.
For the official CRA rules on vehicle records, check out the CRA motor vehicle records page.
Want to see how much your mileage could save you? Try the calculator →
What the CRA Actually Wants in Your Mileage Log
A lot of people think the CRA wants some crazy spreadsheet with 500 columns. It doesn't. For each business trip, you need four things:
- Date — when the trip happened
- Destination — where you went
- Purpose — why you drove (delivery, pickup, between zones, etc.)
- Distance — how many kilometres you drove
You also need to record your odometer reading at the start and end of your tax year (January 1 and December 31). If you switch cars mid-year, write down the odometer reading when you buy, sell, or trade the vehicle.
That's it. The CRA calls this a full logbook. Keep it for the whole year, and you're bulletproof.
Calculate your tax savings with the GigPulse tax calculator →
The Simplified Logbook Shortcut
If the idea of logging every single trip for the rest of your life sounds exhausting, the CRA has a shortcut called the simplified logbook. Here's how it works:
- Keep a full logbook for one complete year to establish a base year.
- In later years, you only need to track a three-month sample period.
- If your business use stays within 10% of your base year, you can use that sample to estimate your annual business kilometres.
The formula is: (sample year % ÷ base year %) × base year annual % = calculated annual business use.
If your driving habits change a lot — maybe you switch platforms or move to a busier zone — the simplified method might not work for that year. In that case, go back to a full logbook and establish a new base year.
Ready to estimate your 2026 taxes? Use the calculator →
The Best Mileage Tracker Apps for Canadian Gig Workers
I've tried a bunch of these apps over the past year. Some are great, some are overpriced, and some are built for sales teams rather than delivery drivers. Here are the ones that actually make sense for gig work in Canada.
1. MileIQ — Best for Set-and-Forget Tracking
MileIQ is probably the most popular mileage app for a reason. It runs in the background, detects when you're driving, and then sends you a notification to swipe right for business or left for personal. You can also set work hours so any trip during your shift is automatically tagged as business.
Pros:
- Automatic trip detection works well
- Swipe classification is fast
- Clean, simple reports for tax time
- Integrates with Microsoft 365 if you use that ecosystem
Cons:
- Free tier only covers 40 drives per month
- If you drive full-time, you will hit the limit fast
Pricing: Free for 40 trips/month, then roughly $7.50 to $13.99/month depending on billing.
Best for: Part-time drivers or anyone who wants the least amount of manual work.
2. Everlance — Best Free All-in-One Option
Everlance is what I personally use right now. It's not just a mileage tracker — it also handles expenses, receipts, and income tracking. For a gig worker who wants everything in one place, it's hard to beat.
Pros:
- Unlimited manual trips on the free plan
- Automatic mileage tracking on paid plans
- Expense and receipt tracking built in
- Good tax reports for self-employed people
Cons:
- The free plan is limited on automatic tracking
- The UI can feel a bit busy compared to MileIQ
Pricing: Free plan available, paid plans start around $10/month.
Best for: Gig workers who want mileage and expenses together without paying for QuickBooks.
3. Driversnote — Best for CRA-Ready Reports
Driversnote is built specifically around tax compliance. It focuses on mileage logs, exportable reports, and optional iBeacon hardware to make tracking more accurate. If your biggest concern is having an audit-ready logbook, this one is worth a look.
Pros:
- Strong focus on tax-compliant logs
- iBeacon option improves accuracy
- Simple CSV exports
Cons:
- Less well-known in Canada, so fewer local integrations
- iBeacon is an extra cost if you want it
Pricing: Paid plans start around $9-11/month, with a free trial.
Best for: People who want the cleanest possible CRA report.
4. Fuelshine — Canadian-Focused Option
Fuelshine is a newer Canadian mileage app that focuses on automatic tracking and CRA-compliant reporting. It's designed with Canadian tax rules in mind, which is a nice change from apps that are clearly built for the U.S. IRS first.
Pros:
- Built for Canadian tax rules
- Automatic tracking
- CRA-compliant reports
Cons:
- Smaller user base, so fewer third-party reviews
- Features still expanding
Pricing: Free tier available, paid plans for full features.
Best for: Canadian drivers who want an app built specifically for the CRA.
5. The Free Option: Google Maps Timeline + a Spreadsheet
If you're dead broke or just want to test whether you'll actually stick with tracking before paying for an app, Google Maps Timeline can help. It records everywhere you go if location history is turned on.
The problem is it's not a tax tool. You will need to:
- Go through your timeline and label work trips
- Add the purpose and distance manually
- Export everything into a spreadsheet
- Calculate your totals yourself
It works, but it's more work than an app. I did this for my first month and quickly switched to MileIQ because I kept forgetting to label trips.
See how your mileage affects your tax estimate →
6. The Old-School Option: A Physical Mileage Log Book
Not everyone wants another app draining their battery. If you prefer pen and paper, a physical mileage log book works just fine as long as you fill it out consistently. The CRA doesn't care whether your log is digital or paper — they care that it has the date, destination, purpose, and distance for each business trip.
You can grab a dedicated mileage log book on Amazon HERE. Keep it in your glove box and write down every work trip before you forget. Low tech, zero battery drain, and audit-friendly if you actually use it.
Which App Should You Actually Choose?
Here's my honest take based on how much you drive:
Part-time (under 40 business trips per month): Start with MileIQ free. It's enough for most weekend drivers and the automatic tracking means you won't forget.
Full-time or multi-platform: Go with Everlance. The free plan covers unlimited manual trips, and the paid plan gives you automatic tracking plus expense management. It's the best balance of features and price for serious gig workers.
Audit-paranoid or already organized: Try Driversnote. The CRA-focused reports give you peace of mind if the taxman ever comes knocking.
Want to support Canadian-built tools: Check out Fuelshine. It's newer, but it's built for the CRA from the ground up.
Prefer pen and paper: Grab a physical mileage log book on Amazon HERE and keep it in your glove box. It works perfectly for the CRA as long as you fill it out every shift.
What to Do With Your Mileage at the End of the Year
This is where a lot of people freeze up. They tracked everything for 12 months, and then they have no idea how to actually use the number. Here's the simple version:
Step 1: Add up your total business kilometres
Your app should have a report for the year. If not, export your trips and sum the distance column.
Step 2: Pick your deduction method
You have two choices for vehicle expenses:
Simplified method: Multiply your business kilometres by the CRA rate.
- $0.73/km for the first 5,000 km
- $0.67/km for every kilometre after that
- This covers fuel, insurance, maintenance, depreciation — everything
Actual expenses method: Track all your vehicle costs (gas, insurance, repairs, maintenance, CCA) and claim the business-use percentage.
The simplified method is usually better for high-mileage drivers. The actual method can be better if you have an expensive car, high repair bills, or low business kilometres.
Step 3: Calculate your vehicle deduction
Once you have your total business kilometres, do the math:
- For the first 5,000 km, multiply by $0.73
- For every km after that, multiply by $0.67
So if you drove 12,000 business kilometres, your deduction would be: (5,000 × $0.73) + (7,000 × $0.67) = $3,650 + $4,690 = $8,340
That's the number you'll enter on Form T2125 when you actually file your taxes. If you use the actual expenses method instead, you'll calculate your business-use percentage and apply it to your total vehicle costs.
Step 4: Use a planning tool to estimate your tax picture
This is where the GigPulse tax calculator is useful. It won't file your return for you, but it can estimate your total tax owing, CPP, and take-home after you plug in your mileage deduction and other numbers. Think of it as a way to figure out how much money to set aside before tax season hits.
For your actual filing, use CRA-certified tax software or work with a CPA. The calculator is a planning tool, not a substitute for professional advice.
Step 5: Keep your records for six years
The CRA can ask to see your records up to six years after you file your return. Keep your app export, screenshots, odometer readings, and any receipts if you used the actual expenses method.
My Honest Advice: Just Start Today
The biggest mistake I see is people waiting until tax season to figure out mileage. By then, you've already lost half your deductions because you can't remember what you drove in March.
Pick an app. Any app. Turn it on today. Drive one shift with it running. That's it. Once you see the first deduction number, you'll never go back to guessing.
The CRA doesn't care if your system is fancy. They care that you have a consistent, reasonable record. A free spreadsheet with dates and kilometres is better than nothing. An automatic app is better than a spreadsheet. But the best system is the one you'll actually use.
Start tracking your mileage, then calculate your 2026 taxes →
Disclosure: Some of the links in this post are affiliate links. If you buy something through them, I may earn a small commission at no extra cost to you. I only recommend tools I would use myself.