CRA mileage rate for 2026
For 2026, the CRA reasonable allowance rate is 73¢ per km for the first 5,000 business km and 67¢ per km after that. Here's what that means for employees, incorporated owners and the self-employed.
Rates by year
| Year | First 5,000 km | Each km after | Territories |
|---|---|---|---|
| 2026 | 73¢ | 67¢ | 77¢ / 71¢ |
| 2025 | 72¢ | 66¢ | 76¢ / 70¢ |
| 2024 | 70¢ | 64¢ | 74¢ / 68¢ |
| 2023 | 68¢ | 62¢ | 72¢ / 66¢ |
The territories rate applies in Yukon, the Northwest Territories and Nunavut.
Who uses this rate
- Employees whose employer pays them back for driving their own car on business. An allowance at or below these rates is generally tax-free.
- Owners of a corporation, who can have the company pay them the same tax-free allowance for business driving.
- Not sole proprietors. If you're self-employed, you claim actual car costs times your business-use percentage instead of a rate per km.
What your logbook needs
- For each business trip: the date, where you went, why you went, and how many km you drove.
- Your odometer reading at the start and end of the year, so the total km driven is known.
- A separate log for each vehicle you use for both business and personal driving.
After one full year of logging, the CRA accepts a simplified logbook: a full log for one typical 12-month base year, then a continuous 3-month sample in later years, as long as the results stay within 10% of the base year.
This is general information to help you keep good records, not tax advice. Check canada.ca or ask your accountant about your situation.
Common questions
Does commuting count as business km?
No. Driving between home and your regular place of work is personal, even if you take calls on the way.
What if my employer pays less than the CRA rate?
The allowance is still tax-free if it's reasonable. You generally can't claim the difference yourself unless you meet the CRA's conditions for employment expenses.