CRA mileage rate 2026 and vehicle expense calculator
The CRA's per-kilometre rate for 2026 is 73¢ for the first 5,000 km and 67¢ after that, plus 4¢ in the territories. Work out a mileage reimbursement, or the business share of your own vehicle costs.
- First 5,000 km
- 73¢ per km
- After that
- 67¢ per km
- Territories
- 4¢ more
The CRA’s per-km rates for 2026
| Where | First 5,000 km | Each km after |
|---|---|---|
| Provinces | 73¢ | 67¢ |
| Yukon, Northwest Territories, Nunavut | 77¢ | 71¢ |
These are the most an employer can deduct for a tax-free allowance paid to an employee who drives their own vehicle for work. The 2025 rates were 72¢ and 66¢.
Mileage reimbursement calculator (employees)
- 5,000 km × 73¢
- $3,650.00
- 3,000 km × 67¢
- $2,010.00
- Reimbursement
- $5,660.00
2026 rates. The higher rate covers the first 5,000 business km in the year, so enter what you already paid if you reimburse monthly.
Self-employed? Deduct your actual costs instead
The per-km rate is for employers paying employees. If you’re self-employed and drive your own vehicle for the business, you don’t claim so many cents a kilometre. You add up what the vehicle actually cost you for the year and deduct the business share:
Business km ÷ total km × vehicle costs = what you can deduct
The business km come from your logbook. For every business trip, write down the date, where you went, why, and the kilometres. Keep your total km for the year as well. You need both numbers to work out the percentage.
- Business use
- 60%
- Personal share (not deductible)
- $3,800.00
- You can deduct
- $5,700.00
Costs means fuel or charging, insurance, licence and registration, repairs and maintenance, loan interest and lease payments. Capital cost allowance is worked out separately.
More on what counts as business driving, the simplified logbook and the 2026 limits on passenger vehicles: claiming vehicle expenses as a self-employed person.
Questions
- What is the CRA mileage rate for 2026?
- 73¢ per kilometre for the first 5,000 km driven in the year and 67¢ for each kilometre after that. In Yukon, the Northwest Territories and Nunavut it's 77¢ and 71¢.
- Is a mileage reimbursement taxable?
- Not if all of these are true: it's paid only for business kilometres, the rate per kilometre is reasonable, and the employee isn't also reimbursed separately for the same driving. The CRA generally treats the rates above as reasonable.
- Can I use the per-km rate if I'm self-employed?
- Not for your own vehicle. The per-km rates are for allowances an employer pays an employee. If you're self-employed, the CRA has you deduct the business share of your actual costs: fuel, insurance, repairs, registration, lease payments and loan interest, times business km over total km.
- How do I work out the business use of my vehicle?
- Divide your business kilometres by your total kilometres for the year and multiply by your vehicle costs. The CRA's example: 27,000 business km out of 30,000 total is 90%, so 90% of $7,000 of costs is $6,300.
- Do I need a mileage log?
- Yes. The CRA says that to get the full benefit of your claim you should record your total kilometres and your business kilometres. For each business trip, write down the date, where you went, why, and how many kilometres.
Sources, checked October 2026: the CRA’s automobile and motor vehicle allowances and motor vehicle expenses for the self-employed, and the Department of Finance’s 2026 automobile limits.
Keep your vehicle costs sorted all year
Upload your bank and card statements and Spark Books puts fuel, insurance and repairs in their own accounts with the GST/HST split out, ready for your accountant to apply your business-use percentage. Free.
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