CRA mileage reimbursement calculator

73¢ per kilometre for the first 5,000 business kilometres and 67¢ for each kilometre after that, in all ten provinces. In Yukon, the Northwest Territories and Nunavut it is 77¢ and 71¢. The Department of Finance Canada confirmed the 2026 figures on 14 January 2026.

No. One national rate covers every province — it does not change from British Columbia to Ontario to Nova Scotia. Only the three territories differ, by 4¢ on each tier. Your province still matters for the employer's GST/HST input tax credit fraction.

Section 7306 of the Income Tax Regulations adds 4¢ for every kilometre driven in Yukon, the Northwest Territories or Nunavut, on top of both tiers. That supplement has been a constant 4¢ for more than a decade.

It is per employee, per calendar year, counts business kilometres only, and resets on 1 January. It attaches to the person rather than the vehicle — section 7306 refers to “one or more automobiles”, so using two cars for one employer still gets one 5,000 km band.

No. Canada has no per-kilometre deduction for sole proprietors or partners. You deduct actual vehicle costs multiplied by your business-use percentage on Form T2125, line 9281, with capital cost allowance on line 9936. Using the 73¢ figure on your return would overstate the claim.

Not if all three CRA conditions hold: the allowance is based only on business kilometres driven, the per-kilometre rate is reasonable, and your employer does not also reimburse you for expenses covering the same use of the vehicle. Fail any one of the three and the whole allowance is taxable. The trade-off for a tax-free allowance is that you cannot also deduct vehicle expenses for the same driving.

A rate that is unreasonably high can make the entire allowance taxable — reported in T4 Box 14 and itemised under Code 40. Code 40 is informational only: the amount is already inside Box 14, so it is not taxed twice. The employer also cannot deduct the portion above the prescribed amount, under paragraph 18(1)(r). A higher rate can still be reasonable on the facts, but the prescribed rate is the CRA's benchmark.

There is no per-kilometre difference to claim; no employee can deduct a per-kilometre amount. If the allowance is unreasonably low you may include it in income and deduct your actual eligible motor-vehicle expenses on Form T777 (line 22900), but only if your employer signs Form T2200.

Yes. Without a signed T2200 — the Declaration of Conditions of Employment — there is no employment-expense claim on line 22900. Ask payroll for it before you file, not after.

Always. A flat monthly amount is not based on kilometres, so it fails the first CRA condition however generous it is, and the full amount is included in employment income — T4 Box 14, itemised under Code 40. Switching to a per-kilometre allowance at or under the prescribed rate makes it tax-free.

Not for the same driving — that double coverage makes the whole allowance taxable. Supplementary business insurance, toll charges and ferry charges are the carve-outs: an employer can reimburse those separately without tainting a kilometre-based allowance.

Those use the CRA's simplified-method rates, which are a different set entirely. They do vary by province and territory, they are set per tax year, and they apply based on where the travel began. They cannot be used for business vehicle expenses.

Yes — a deemed input tax credit equal to the tax fraction of a reasonable allowance paid for taxable-supply activities: 13/113 in Ontario, 15/115 in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island, and 5/105 elsewhere. If the allowance is not reasonable for income-tax purposes, the credit is denied.

Yes. Revenu Québec applies the same prescribed per-kilometre rate and the same substantive rules. A reasonable allowance is not reported on the RL-1 at all; an unreasonable one goes in boxes A, G, I and L. Quebec employers can also claim the QST input tax refund at 9.975/109.975 alongside the GST credit.

Every year back to 2015 is listed on this page, and the year selector prices your kilometres at any of them — useful when you are reconstructing a prior year for a reassessment. The territorial supplement was 4¢ per tier throughout that window.

No. Travel between home and your regular place of work is personal driving every time, and it never counts toward business kilometres or the 5,000 km band. Classify it as commuting and keep it out of the business total.

Date, destination, purpose and distance for every business trip, plus documentation of the rate paid and the payments made. Employers keep the employee's kilometre log alongside those records. Retain everything for six years.