This estimate is for informational purposes only. This tool provides a general idea and does not replace the advice of an accountant. For a solution tailored to your specific situation, Bankeo will find you the ideal accountant free of charge and without obligation.
Find your accountantMeals and entertainment, vehicle with mileage or percentage of business use and home office.
Mileage, amount paid or percentage of use, as well as your marginal tax rate.
Total deduction calculated and estimated net tax savings.
Deductible business expenses allow a self-employed individual or a company to reduce their taxable income, and therefore the tax payable. For an expense to be deductible, it must be incurred for business purposes and remain reasonable. Canada The calculator applies the 2026 rules: meals and business expenses are 50% deductible (harmonized federal, Quebec, and Ontario rule), vehicles are deductible based on mileage or actual use, and home offices are prorated based on square footage. Taxes and credits are not included in the estimate.
If you use your vehicle for work, there are two approaches to Canada You deduct the business portion of your actual expenses, that is, your car expenses multiplied by the ratio of business kilometers to total kilometers (fuel, maintenance, insurance, registration, interest, depreciation). Keep a log of your trips. The calculator applies the 2026 limits (category 10.1: capital cost of $39,000, lease of $1,100 per month, interest of $350 per month).
Meals and entertainment expenses include a personal component (you would have eaten even without the client), which is why the tax authorities limit their deduction. Canada The limit is generally 50% (and the same proportion applies to tax credits), according to a rule harmonized between the federal government, Quebec and Ontario, with specific rules for certain sectors.
| Type of Fees | Treatment with | Canada |
|---|---|
| Vehicle with mileage; | Actual expenses x (business km / total km), with caps |
| Real-life vehicle | Professional share of actual expenses |
| Meals and reception | 50% tax deductible (federal, Quebec, Ontario) |
| Home Office | Proportional to the office area |
| Vehicle depreciation | | Capped (category 10.1: capital cost $39,000) |
| Ceilings and limits; | Vary depending on the department and the year |
| Annual update | 2026 tax rates recalculated by the calculator |
Overview for educational purposes. Exact rates, limits, and ceilings may vary by department: the calculator applies the 2026 rates. Canada .
At Canada You deduct the business portion of your actual vehicle expenses: car expenses (fuel, maintenance, insurance, registration, interest, depreciation) multiplied by the ratio of business kilometers to total kilometers. Keep a log of your trips. The calculator applies the 2026 limits (category 10.1).
You deduct the portion of your business use from your actual expenses: fuel, maintenance, registration, insurance, interest, lease payments, and depreciation. The percentage is calculated based on your logbook (business mileage / total mileage). For example: 8,000 business kilometers out of a total of 20,000 kilometers represents 40%; for €8,000 in expenses, the deduction is €3,200.
At Canada Only a portion of professional meal and entertainment expenses is deductible: the limit is generally 50%, according to a rule harmonized between the federal government, Quebec, and Ontario, with specific cases for certain sectors. The calculator applies this limit automatically.
Keep a log of your trips: date, departure and arrival points, purpose of trip, and distance traveled. Retain receipts for fuel, maintenance, and insurance. A mobile tracking app is highly recommended to automate the process.
Business meals and entertainment expenses (meals, event tickets, modest business gifts) are subject to the same deduction limit. Canada It's usually 50%. Club membership fees (sports, social, golf) are generally not tax-deductible.
The savings are equal to the deduction multiplied by your marginal tax rate. For example, with a marginal tax rate of 36%, a $5,000 deduction saves approximately $1,800 in taxes. Your rate depends on your state and income level; the calculator applies it automatically.
The calculation principle is the same, but the economics differ because the tax rates are not the same. A self-employed individual deducts at their personal marginal tax rate, while a business deducts at the corporate tax rate. These rates vary by province, which the calculator takes into account.
Bankeo connects you, free of charge, with chartered accountants specializing in tax optimization and business deductions. We understand your business and present you with accountants who can maximize your deductions while complying with tax regulations. This service is free for entrepreneurs and requires no commitment.
Tax optimization for business vehicles.
Read the article →A practical guide for entrepreneurs.
Read the article →Full list and rules 2026.
Read the article →Deductible moving expenses for entrepreneurs.
Read the article →Bankeo connects you free of charge with chartered accountants specializing in tax optimization and business deductions. This is a free service for entrepreneurs, with no obligation.
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