CRA mileage allowance calculator
Enter the business kilometres already paid to an employee this year and the kilometres in this claim. The calculator applies the CRA’s reasonable per-kilometre rates and switches to the lower rate after 5,000 km. For 2026 that is 73 cents, then 67 cents, in the provinces, and 77, then 71 cents, in the territories.
CRA reasonable per-kilometre rates, first 5,000 km then each km after: 2025: provinces 72 and 66 cents, territories 76 and 70 cents; 2026: provinces 73 and 67 cents, territories 77 and 71 cents. Reviewed 2026-11-03.
The CRA generally considers an allowance at these rates reasonable. An allowance is not taxable to the employee when it is based only on business kilometres, the rate is reasonable, and you don’t also reimburse the employee for the same use of the vehicle. A flat allowance that isn’t based on kilometres is taxable, and you can’t average allowances at the end of the year to make the rate reasonable.
The higher rate covers the first 5,000 business kilometres in the calendar year, so enter what you have already paid that employee for this year. Ask employees for a log of each work trip with the date, destination and purpose. Without records, the allowance is generally taxable.
These are not the same as the 34 cents per kilometre operating cost benefit rate for 2026, which is used to work out the taxable benefit when an employer provides the vehicle. US business? Use the IRS-based mileage reimbursement calculator instead.
Sources: Finance Canada: 2026 automobile limits and rates, Finance Canada: 2025 automobile limits and rates, CRA: automobile and motor vehicle allowances. This tool is not tax advice; check how the rules apply to you with your accountant.
Related
Common questions
What is the CRA mileage rate for 2026?
For 2026 the reasonable per-kilometre allowance is 73 cents for the first 5,000 km and 67 cents for each kilometre after that in the provinces, and 77 and 71 cents in the territories (Northwest Territories, Nunavut and Yukon). In 2025 it was 72 and 66 cents in the provinces and 76 and 70 cents in the territories.
Do I have to pay the CRA rate?
No. The CRA generally treats these rates as reasonable, but a higher or lower rate can also be reasonable depending on the facts, such as the type of vehicle or local fuel costs. If the rate isn’t reasonable, the allowance can become taxable to the employee.
Is a vehicle allowance taxable in Canada?
Not if it is based only on business kilometres, the per-kilometre rate is reasonable, and you don’t also reimburse the same vehicle expenses. A flat-rate allowance that isn’t based on kilometres driven is taxable.
What records do employees need to keep?
Receipts, or a log of each work trip with the date, destination and purpose. The CRA says that if no record is kept, the allowance or reimbursement is generally taxable.
Does Barespend track mileage?
Yes. Mileage and per diem tracking are included on every Barespend plan.