Surviving and Thriving: What Canada’s 2025 Tax Changes Mean for Trucking Companies

The trucking industry is the lifeline of the Canadian economy. From cross-border hauls to last-mile deliveries, over 70% of the country’s freight is moved by trucks. Yet, as vital as the sector is, it also operates on some of the thinnest margins of any industry. With the 2025 federal tax adjustments now taking effect, many trucking company owners are asking: How does this affect my business?

At Sahil & Meher Accountants and Consultants, we’ve worked closely with fleet operators, owner-operators, and logistics firms across Canada. In this article, we break down how the latest federal changes affect your books, your cash flow, and your long-term strategy.

Fuel Costs and the Carbon Tax Repeal

One of the biggest headlines from the new government was the repeal of the federal consumer carbon tax. For trucking companies, this development could mean a modest reduction in diesel and gasoline costs—especially relevant for long-haul operators with cross-provincial routes.

However, the industrial carbon pricing system remains in place. That means fleet operators still need to account for fuel surcharges, emissions tracking, and reporting—especially if your business crosses into provinces with stricter climate policies like B.C. or Quebec.

What You Can Do:

• Reassess your fuel budgeting models.

• Track carbon output for compliance.

• Consider upgrades to more fuel-efficient vehicles or hybrid solutions.

  
  

Capital Cost Allowance (CCA) and Equipment Investments

Truck replacements, trailer upgrades, GPS fleet systems—all these fall under capital expenditures. With inflation-adjusted CCA rates and recent CRA clarification on clean energy vehicle write-offs, now may be a smart time to reevaluate your capital investment strategy.

Key Tip: Section 1100 of the Income Tax Regulations allows different rates of depreciation depending on the class of vehicle or equipment. Timing purchases strategically—before your fiscal year-end—could accelerate deductions.

Payroll and Employment Credit Implications

Trucking companies with multiple drivers, dispatchers, mechanics, and admin staff should be paying close attention to payroll changes. The federal income tax rate for the lowest bracket has dropped from 15% to 14%, which impacts withholding requirements.

Implication: If your payroll software isn’t updated to the new CRA tables by July 1, 2025, you risk under-deducting and facing penalties.

What You Should Do:

• Update payroll systems.

• Review EI and CPP contributions.

• Educate employees about updated net pay expectations.

The Rising Cost of Digital Infrastructure

Whether you're investing in ELDs (electronic logging devices), digital logs, dispatch platforms, or fleet management software, there's an increasing cost tied to cloud-based platforms. The Digital Services Tax (DST), although aimed at major tech firms, is often passed down to end users in the form of increased subscription or licensing fees.

Strategy: Lock in multi-year contracts where possible, and audit your tech stack to ensure you're using platforms efficiently.

Owner-Operators: Structuring for Tax Efficiency

If you're an owner-operator, whether incorporated or operating as a sole proprietor, 2025 brings new questions:

• Is incorporation still more tax-efficient under the new rules?

• Can I split income with a spouse or family member?

• How do I report fuel rebates or provincial grants?

Now’s the time to revisit your structure. Incorporation offers liability protection and tax deferral strategies, but also comes with compliance burdens.

Our Advice: Sit down with a professional accountant to:

• Compare effective tax rates.

• Optimize deductions (home office, meals, per diems, maintenance).

• Explore tax deferral through RRSP or corporate class investments.

Long-Term Outlook: Planning Beyond the Cab

The trucking industry continues to face pressure: labor shortages, insurance hikes, repair costs, and customer demands for faster delivery. While the 2025 tax adjustments offer some relief in places, they also demand more strategic foresight.

Here’s how you future-proof:

• Maintain clean, reconciled books month-to-month.

• Build a quarterly tax estimate to avoid surprises.

• Plan for equipment turnover years in advance.

• Stay up to date on federal grants or accelerated capital depreciation incentives.