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CRA mileage rate 2026

For 2026, the CRA's reasonable allowance is 73 cents a kilometre for the first 5,000 business kilometres and 67 cents after that. The territories get 4 cents more.

A woman driving to a client meeting

CRA allowance rate for 2026

CA$0.73 a km

For the first 5,000 business kilometres of the year. After that, CA$0.67 a km. Yukon, the Northwest Territories and Nunavut add CA$0.04.

CRA mileage calculator

Rate

km

The CRA rate is tiered: the first 5,000 kilometres are always paid at the higher rate, even when a claim goes well past that.

Reimbursement

Enter a distance to see the calculation.

How to apply the 2026 CRA rate

The rate has two tiers, and they count over the whole year for each employee, not trip by trip.

  1. Log business kilometres

    Record the date, the destination, the purpose and the kilometres for each trip. Driving between home and your regular workplace is personal, not business.

  2. Pay the first 5,000 km at 73 cents

    The tiers are cumulative over the year. 6,000 km is 5,000 × $0.73 plus 1,000 × $0.67: $3,650 plus $670, or $4,320. It is not 6,000 × $0.67.

  3. Add 4 cents in the territories

    Kilometres driven in Yukon, the Northwest Territories or Nunavut use 77 cents for the first 5,000 and 71 cents after.

  4. Base the allowance on kilometres only

    To stay a reasonable, tax-free allowance, the amount has to be based only on business kilometres. A flat monthly car allowance, or one paid on top of other reimbursement for the same driving, is generally taxable.

CRA per-kilometre allowance rates

The amounts the CRA treats as a reasonable, tax-exempt allowance an employer can pay and deduct.

YearFirst 5,000 kmEach km after 5,000Territories, first 5,000 kmTerritories, after 5,000
2026CA$0.73CA$0.67CA$0.77CA$0.71
2025CA$0.72CA$0.66CA$0.76CA$0.70

Frequently asked questions

73 cents per kilometre for the first 5,000 kilometres driven for business in the year, and 67 cents for each kilometre after that. In Yukon, the Northwest Territories and Nunavut the rates are 77 and 71 cents.

72 cents for the first 5,000 kilometres and 66 cents after, or 76 and 70 cents in the territories. The 2026 rates went up by one cent on each tier.

Not when it's reasonable and based only on the kilometres driven for business. An allowance at or below the CRA rate meets that test. A flat allowance that isn't tied to kilometres is a taxable benefit.

No. The rate sets what an employer can pay an employee tax-free. If you're self-employed, you deduct your actual vehicle expenses, such as fuel, insurance, maintenance and capital cost allowance, in proportion to your business use, which your logbook establishes.

34 cents per kilometre of personal driving in an employer-provided car, unchanged from 2025, or 31 cents for employees whose main job is selling or leasing cars. That's a different number from the allowance rate: it values the benefit to the employee, it doesn't reimburse them.

Yes. The CRA expects a record of each business trip with the date, destination, purpose and kilometres. After one full year of logging, a three-month sample period can be used in later years if business use stays within a similar range.

Where these numbers come from

Rates are from the CRA's automobile allowance page and the Department of Finance announcement of the 2026 limits.

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Mileage claims without the spreadsheet

Smartbills records business trips, applies the CRA or IRS rate and adds the claim to an expense report next to the parking and fuel receipts.

See expense reports