Vehicle Expense Caps 2026
Vehicle Expense Caps 2026
CRA caps how much loan interest and lease cost you can deduct on a passenger vehicle. The 2026 monthly limits -- updated, so you are not working off the old numbers.
Monthly deduction limits (2026)
| Loan interest | $350 per month |
| Lease cost | $1,100 per month |
Watch the figure
- These are the CURRENT 2026 caps -- the older $300 interest / $900 lease limits are out of date
- Lease deductibility is also subject to a separate cost-of-the-vehicle proration
As of 2026 -- not financial advice. Use $350 loan interest / $1,100 lease -- NOT the old $300/$900. See also CCA Class 10.1 for the depreciable-cost cap. Confirm at canada.ca (CRA).
Sources: CRA / Department of Finance -- 2026 automobile deduction limits
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