How to Track Car Expenses
Written by Muneeb Rana · Last updated 21 October 2026
Quick answer: To track car expenses, record every cost in a few categories: fuel, maintenance and repairs, insurance, loan or lease payments, registration and taxes, parking and tolls, and cleaning. Note the date, odometer and amount, keep receipts, and review totals monthly and per mile. If you use the car for business, keep the records the IRS or HMRC requires.
TL;DR
- Use 6-8 categories and log every cost.
- Review monthly and per mile.
- Keep receipts, especially for business use.
Learning how to track car expenses shows you what your car really costs, which helps with budgeting, deciding whether to keep or sell, and claiming business use. Here's a simple system.
Categories to track
| Category | Examples |
|---|---|
| Fuel / charging | Fill-ups, charging sessions |
| Maintenance | Oil changes, filters, tires |
| Repairs | Brakes, unexpected fixes |
| Insurance | Premiums, excess payments |
| Finance | Loan or lease payments |
| Registration and taxes | Registration, road tax, inspection fees |
| Parking and tolls | Permits, tolls, meters |
| Other | Washes, accessories, fines |
Totals that matter
Monthly spend, annual total and cost per mile (annual total ÷ miles). Compare yours with AAA's 2025 average of about $11,577 a year for a new car at 15,000 miles using the cost of car ownership calculator, and budget maintenance with the maintenance cost calculator.
Business use and taxes
If you claim business mileage, the IRS lets you use either the standard mileage rate or actual expenses, and either way you need records (IRS mileage rate, mileage log for taxes). Gig drivers should read Uber driver expenses. This isn't tax advice; check IRS or HMRC guidance.
Tools
A spreadsheet is fine if you update it weekly. An app is easier at the pump or the shop. CarO's car expense tracker logs expenses and income per car, with reports by day and by distance, and supports multiple vehicles.
Download CarO free on the App Store or Google Play. Free with ads; optional in-app purchases.
Sources
- AAA: Your Driving Costs 2025 fact sheet: newsroom.aaa.com (accessed 21 October 2026)
- IRS Topic 510: Business use of car: www.irs.gov (accessed 21 October 2026)
- IRS Publication 463: Travel, Gift, and Car Expenses: www.irs.gov (accessed 21 October 2026)
Disclaimer: CarO and this website give general car-care information, not professional advice. Maintenance intervals and specifications vary by vehicle, so always follow your owner's manual and a qualified mechanic. Mileage and cost figures are estimates; check local tax rules before using any log for deductions.
FAQ
What car expenses should I track?
Fuel, maintenance, repairs, insurance, finance payments, registration and taxes, parking and tolls, and other costs like washes.
How do I calculate my car's cost per mile?
Add up all yearly costs including depreciation and divide by the miles you drove that year.
Can I deduct car expenses?
If you use the car for business, you may be able to deduct business use with the standard mileage rate or actual expenses. Personal commuting generally isn't deductible.
Is a spreadsheet or an app better?
Whichever you'll keep up with. Apps are easier for logging on the go; spreadsheets are flexible for analysis.
How long should I keep car expense receipts?
For tax purposes, generally as long as the tax authority can review your return; the IRS commonly suggests at least three years.
Related guides
Track this in CarO
CarO is a free car maintenance tracker app for iPhone and Android that keeps a full service history, reminds you about oil changes and inspections by mileage or date, and logs fuel fill-ups with MPG, odometer readings and car expenses for every vehicle you own. Logs are stored in the cloud and can be exported as CSV.
