Truck drivers spend a lot on the road, and Canada’s tax rules recognize that, especially for long-haul drivers. But the rules depend on whether you’re an employee driver or a self-employed owner-operator, and mixing them up is one of the most common reasons drivers get reassessed.
Employee drivers: meals and lodging on Form TL2
If you’re an employee who regularly travels away from your employer’s municipality, you may be able to claim meal and lodging expenses using Form TL2, with Form T2200 completed by your employer.
- Long-haul truck drivers can deduct 80% of eligible meal expenses, compared with 50% for most other transport employees.
- Under the simplified method, you can claim $23 per meal, up to 3 meals in a 24-hour period (one meal for every 4 hours after departure), without keeping meal receipts. Your logbook supports the claim.
- Under the detailed method, you claim what you actually spent, and you must keep receipts.
- Lodging and showers can be claimed with receipts.
Who counts as a long-haul driver?
Generally, a long-haul truck driver is an employee whose main job is transporting goods by driving a long-haul truck, on trips that take them at least 160 km from the home terminal and keep them away for 24 hours or more. Local and short-haul drivers who are home every night usually don’t qualify for the long-haul rules.
Owner-operators: business expenses on the T2125
If you run your own trucking business, your income and expenses go on Form T2125, or on your corporation’s T2 return if you’re incorporated. Common deductible costs include fuel, repairs and maintenance, insurance, licences and permits, ELD and dispatch subscriptions, phone costs, and capital cost allowance on your truck and trailer.
Be careful with meals: the flat-rate simplified method is designed for employees, and the CRA has challenged self-employed drivers who used it. Owner-operators should keep actual meal receipts.
Records that protect your claim
- Logbooks or ELD records showing trip dates, times and destinations
- Receipts for lodging, showers, fuel and repairs
- Your T2200 (employees) and settlement statements (owner-operators)
Driving for a living? See our plans and pricing or contact Wealth Street Services. We’re in Brampton and serve clients across Canada.
Ask us about our truck driver tax package.
Sources
- H&R Block Canada: TL2 meals and lodging for long-haul truck drivers
- Trucknews: CRA increases meal allowance limit
- Trucknews: Meal deduction rates and owner-operators
This article is general information, not tax or financial advice. Rules and amounts change, so confirm details with the Canada Revenue Agency or speak with our team about your situation.
