Calculates the tax‑free mileage reimbursement amount for business use of a personal vehicle in Canada, based on the official CRA rates for the current year.
Result
Final reimbursement amount. This is the tax‑free allowance you can claim.
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Indicative result, calculated from the details and the rules listed below. It does not replace an official calculation or advice from a professional.
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If you use your personal vehicle for business purposes, your employer can reimburse you tax‑free up to a specific amount per kilometre, as set by the Canada Revenue Agency (CRA). This calculator uses the official CRA automobile allowance rates to determine your eligible reimbursement.
The reimbursement follows a two‑tier structure:
These rates are published annually by the CRA. For travel within prescribed northern zones (Yukon, Northwest Territories, Nunavut, and the defined northern zone), the reimbursement is 1.5 times the general rate.
Any payment from your employer that does not exceed the amount calculated using these rates is considered a non‑taxable allowance. Amounts paid above this limit may be treated as a taxable benefit.
Suppose an employee in British Columbia drives 8,500 business kilometres in a year. The CRA rates for the year are 70¢/km for the first 5,000 km and 64¢/km for additional kilometres.
If the same distance were driven in Nunavut, the total would be multiplied by 1.5, resulting in a tax‑free reimbursement of $8,610.00.
To manually calculate your reimbursement, follow these steps:
This process ensures you claim the maximum tax‑free amount allowed.
The CRA requires that you maintain a detailed log to support your claim. This log should include for each business trip:
You do not need to keep fuel or repair receipts for a tax‑free allowance, but the logbook is mandatory. Your employer may also have internal forms or mileage tracking software you are required to use.
After calculating your reimbursement, you should formally submit a claim to your employer. A Claim for Reimbursement form provides a clear record of your business kilometres, the applicable rate, and the total amount. It streamlines the approval and payment process. Many employers have their own forms, but a standard form ensures all necessary details are captured.
If your employer does not have a policy, you can propose one. A Professional Expense Reimbursement Policy can establish clear rules for mileage and other expenses, preventing misunderstandings and ensuring consistent treatment for all employees.
For 2026, the CRA has set the general rate at 70 cents per kilometre for the first 5,000 business kilometres and 64 cents per kilometre for each additional kilometre. These rates are subject to change each January.
No, reimbursement paid at or below the CRA's published kilometre rates is a non‑taxable allowance. If your employer pays you more than the CRA rate for any kilometre, the excess amount is considered a taxable benefit.
Business kilometres are those driven for work purposes, such as travel between different work sites, visits to clients or suppliers, or travel to a temporary workplace. Commuting from home to your regular place of work typically does not count.
The CRA's prescribed northern zone includes all of Yukon, Northwest Territories, Nunavut, and parts of certain northern provinces. If you are unsure, consult the CRA's detailed map or list of prescribed zones, or confirm with your employer's finance department.
You can, but you must manually enter the correct CRA rates that were in effect for that specific tax year. The calculator's default rates are for the current calendar year.
You do not need fuel or maintenance receipts for a tax‑free allowance. However, you must maintain a detailed logbook showing the date, destination, purpose, and number of kilometres for each business trip to substantiate your claim if requested by your employer or the CRA.
