CRA rates, checked August 23, 2026

CRA mileage rate for 2026

73 cents per kilometre for the first 5,000 kilometres driven for work in the year, 67 cents after that, and 4 cents more in Yukon, the Northwest Territories and Nunavut.

Source: Automobile allowance rates, canada.ca

What the rate is for

These are the per-kilometre amounts an employer can pay an employee for using their own car without the payment counting as a taxable benefit. Income Tax Regulations s. 7306 sets them per person and per taxation year, across one or more cars, and caps what the employer may deduct; the CRA treats the same figures as a reasonable allowance. They are set by the Department of Finance each December or January and published on the CRA’s automobile allowance rates page.

Kilometres times this rate is an allowance estimate, not anyone’s deduction. An employee who is paid a reasonable allowance normally cannot also deduct vehicle costs. An employee who pays their own costs and holds a signed T2200 deducts actual expenses times the employment-use share on line 22900; see the CRA’s salaried employee page.

They are not the rate the self-employed use either. If you file a T2125, you deduct the business-use share of your actual vehicle costs, worked out from business kilometres over total kilometres. The CRA explains that on its motor vehicle expenses page. In both cases the drive from home to a regular workplace is personal, and the logbook is kept for six years from the end of the tax year.

2026 ceilings for vehicle deductions

The same Finance Canada release sets the limits that apply to actual-cost claims in 2026, before tax.

Capital cost allowance, Class 10.1 passenger vehicle	$39,000
Capital cost allowance, Class 54 zero-emission vehicle	$61,000
Deductible leasing cost, per month	$1,100
Deductible loan interest, per month	$350

Source: Finance Canada, 2026 automobile deduction limits and expense benefit rates, January 14, 2026.

A worked example

Say an employer reimburses you at the CRA rate and you drove 6,200 km for work in 2026. The first 5,000 km are paid at 73¢ and the remaining 1,200 km at 67¢:

5,000 km × 73¢	$3650.00
1,200 km × 67¢	$804.00
Total	$4454.00

The 5,000 km threshold is per calendar year and per person, not per car. Odie applies the tiers in date order across all the cars you have set up, which is how the CRA describes it.

In the app

Work settings has a CRA scheme with a read-only table of both tiers for 2024, 2025 and 2026 (source: canada.ca, checked August 23, 2026) and the 5,000 km threshold. Each trip is priced at the rate of its own date, so a report for an earlier year uses that year’s figures and the report names the rate it used, such as “CRA rate, 2026 tiers”. A Territories switch adds 4¢ to each tier. If your employer pays a different rate, “Override this year’s rate” replaces the current year’s two tiers only. The custom scheme takes any rate, with an optional second tier.

This page is informational and is checked against the CRA’s page when rates change. It is not tax advice.