Truck Driver (Owner-Operator)
Tax guide for Canadian self-employed truck drivers and owner-operators
Allowable Expenses
- Fuel costs — Diesel or gasoline purchases for your truck — one of the largest deductible costs
- Truck maintenance & repairs — Oil changes, tyre replacements, brake work, and scheduled servicing
- Truck insurance premiums — Commercial vehicle, cargo, and liability insurance premiums
- Truck payments (CCA) — Your truck depreciates as a Class 10 (30%) or Class 10.1 asset claimed on T2125
- Long-haul meal allowances — CRA allows a daily flat rate for meals on overnight trips away from home base
- Logbook and compliance software — ELD (Electronic Logging Device) subscription, dispatch, and compliance tools
Tax Tips
- Keep a detailed logbook of all business trips — the CRA requires this for vehicle expense claims
- Long-haul drivers on overnight trips can claim a flat-rate meal allowance (currently 80% deductible)
- Your truck qualifies as CCA Class 10 (30% declining balance) — claim it on Form T2125
- Register for GST/HST once annual revenue exceeds C$30,000 and file GST/HST returns quarterly or annually
Frequently Asked Questions
How do I claim my truck as a CCA deduction on the T1?
Your truck is a depreciable asset claimed under the Capital Cost Allowance (CCA) system. Class 10 vehicles (30% rate) cover most commercial trucks. Report the CCA deduction on Form T2125 under Part 6. Keep your truck purchase invoice and track the Undepreciated Capital Cost (UCC) each year.
Can owner-operators claim fuel as a business expense in Canada?
Yes — fuel purchased for business haulage is fully deductible as a business expense on Form T2125. Keep all fuel receipts and, if possible, use a dedicated fuel card to make record-keeping easier for CRA purposes.
Do truck owner-operators have to charge GST/HST?
Most freight services in Canada are zero-rated for GST/HST if they involve interprovincial or international transport. However, intra-provincial local delivery services may be taxable. Consult the CRA or a tax professional to determine the GST/HST treatment of your specific routes.