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Financing a vehicle for gig or self-employed work in Canada

The loan payment and the tax treatment are separate calculations.

Updated and verified August 24, 2026

Principal and interest

A payment includes repayment of principal and interest. Tax treatment does not generally turn the full payment into a business deduction.

Business-use percentage and records

Eligible vehicle costs may need allocation between business and personal use. A kilometre log and supporting receipts help establish that percentage.

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The car-loan tool estimates financing. It does not calculate deductible interest, capital cost allowance, mixed-use allocation, GST/HST, or a T2125 claim.

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