buksoNew car payment car loan lease
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
Canada
A car loan payment is not an expense by itself. The part that pays back the loan is never deductible; you claim the interest (for a passenger vehicle, up to $350 a month on loans from 2026) plus capital cost allowance on the car's cost (for passenger vehicles bought in 2026, the cost counted is capped at $39,000 before tax, or $61,000 for zero-emission vehicles). Leases on new 2026 leases are capped at $1,100 a month before tax. All of these are then multiplied by your business-use share.
Official source: canada.ca