CRA mileage calculator
Enter the business kilometres you drove this year. You get the most an employer, or your own corporation, can pay you tax-free at the CRA rates.
How it's worked out
- The first 5,000 business km in the year are paid at the higher rate, 73¢ per km for 2026.
- Every km after that is paid at 67¢.
- In Yukon, the Northwest Territories and Nunavut, add 4¢ to both rates.
- Only business driving counts. Driving between home and your regular place of work is personal.
Who can use the per km rate
These rates are for allowances: an employer paying you back for using your own car. If you own a corporation, it can pay you this allowance tax-free too.
If you're self-employed (a sole proprietor), you don't claim per km. You claim your actual car costs, like fuel, insurance and repairs, times your business-use percentage. Your logbook is how you prove that percentage.
Common questions
What is the CRA mileage rate for 2026?
73¢ per km for the first 5,000 km and 67¢ per km after that, plus 4¢ in the territories.
Is a mileage allowance taxable?
Not if it's reasonable and based only on business km. An allowance at or below the CRA rates is generally treated as reasonable.
Can a sole proprietor claim 73 cents per km?
No. Sole proprietors claim actual vehicle expenses times business use. Keep a logbook and your receipts, and the app works out the business-use share for you.