Trucking businesses face unique expenses—and fortunately, many of them are tax-deductible. By understanding what qualifies as a deduction and keeping thorough records, trucking business owners can reduce their taxable income and improve profitability. Here’s how to make the most of your tax deductions:
Fuel, repairs, maintenance, insurance, licensing, and depreciation on trucks are all deductible business expenses. Whether you own or lease your trucks, make sure you keep receipts and records for everything related to their use.
Long-haul drivers who travel away from home for work can claim daily meal and lodging expenses. The CRA allows for a simplified method or actual expense method—choose what works best for you and keep receipts or logs.
If you have an office or workspace (even a home office), you can deduct a portion of rent, utilities, internet, and office supplies. Administrative costs such as accounting, dispatching, and software subscriptions are also deductible.
For trucks and other large equipment, you may not deduct the full cost in one year. Instead, you can claim depreciation over time using the Capital Cost Allowance (CCA). This is a great way to spread the tax benefit over several years.
Fees for truck driver training, certifications, safety compliance, and ongoing education are deductible. Keeping your drivers trained and compliant doesn’t just reduce risk—it also reduces your taxes.