Can I Claim Business Travel as a Business Expense in Canada?
Fully deductible for genuine business travel. Airfare, accommodation, and ground transportation are deductible at 100%. Meals while travelling are subject to the 50% limitation. CRA per diem rates for meals in 2025 are CAD 23 (breakfast), CAD 28 (lunch), and CAD 51 (dinner). Personal days on a business trip must be excluded.
What Canada Revenue Agency (CRA) says
CRA allows travel expenses under the general business deduction rule when incurred to earn business income. The travel must have a genuine business purpose. Section 67.1 applies the 50% limit to meals while travelling. CRA's accommodation and meal rate guidance sets per diem amounts used by many employers for reimbursement. Receipts are required for all travel expenses.
When you can claim
- Airfare, train, or bus tickets for business travel
- Hotel accommodation for business nights away from home
- Ground transportation (taxis, ride-sharing, rental car) for business trips
- 50% of meal expenses while travelling for business away from your regular place of business
- Conference registration fees and associated travel to business conferences
When you cannot claim
- Personal days taken before or after a business trip (flights must be apportioned if mixed)
- Spouse or family member travel costs unless they have a legitimate business role
- Commuting from home to the office (not business travel)
- Luxury upgrades beyond reasonable business standard
Good to know
Pro tip: Book business travel on a dedicated business credit card to make it easy to identify and document. Record the business purpose of each trip in your accounting system at the time of travel. CRA may request documentation of trip purpose for travel deductions years later.
Stop guessing what you can claim in Canada
AccountsOS automatically categorises expenses with Canada Revenue Agency (CRA)-aware rules and tells you exactly what is claimable.
Try Free