Mileage Calculator Canada [Updated For 2022]
Driversnote’s 2022 mileage reimbursement calculator is based on the CRA mileage rates for 2022. You can use the calculator below to get an overview of how much you can receive as vehicle mileage reimbursement for this year and calculate your work mileage. If you are looking for a mileage logbook or a mileage tracker - check out the automatic Driversnote app instead.
Mileage calculator with the current rates
The CRA sets a standard mileage rate each year which is used to calculate your mileage reimbursement. The 2022 CRA mileage rate is $0.61 for the first 5000km driven for business and $0.55 per kilometre over 5000km. The CRA mileage rate for 2021 was 59¢ per kilometre for the first 5,000 kilometres driven and 53¢ per kilometre above that.
Use the calculator below to estimate the reimbursement you are entitled to in 2022.
Calculating your mileage reimbursement manually
If you would like to calculate your mileage reimbursement manually, you can do so by following the example below:
Let’s imagine that it is the end of the year and your logbook shows a total of 11,000 km for business purposes.
All you need to do is multiply the 11,000 km by the mileage rate. However, you need to remember that the first 5000 km and the km after that are reimbursed at different mileage rates. Up to 5000 km, the CRA mileage rate for 2022 is 61¢ and after 5000km it is 55¢. Therefore you would calculate your reimbursement like this:
5000 (first 5000km) x 0.61 = $3050 (Your reimbursement for the first 5000km)
6000 (Remaining km) x 0.55 = $2750 (Your reimbursement for the km after the first 5000)
Now combine the two to get the total mileage reimbursement:
3050 + 2750= $5800
If you have logged everything perfectly in your mileage logbook, there should be no reason for you not to get reimbursed. You can use the Driversnote mileage tracking app to make sure you never miss logging a trip and quickly generate compliant mileage reports.
How to use the mileage calculator for your business mileage
When employees use their vehicles for business purposes, mileage reimbursement is used to compensate them for the mileage expenses incurred. If you are self-employed you have the option to be compensated for actual expenses related to maintenance and repairs instead of using a flat mileage rate.
Some of the possible reimbursements are:
- Licence and registration costs
- Fuel and oil
- Electricity (for zero-emission vehicles)
- Costs for maintenance and repairs
- Leasing costs
- Interest on money borrowed to buy the motor vehicle
The mileage calculator provided above is a great way for you to find the overall reimbursement you are entitled to based on the CRA mileage rate for 2022. However, in order to get reimbursement, you must keep a proper mileage log of all your trips. For any trips logged during 2021, remember that you need to use the CRA mileage rate for 2021.
Using your calculation for reimbursement
In order to receive the calculated mileage reimbursement, you must be able to prove that you have driven kilometres for business purposes. As self-employed you must also provide receipts for any vehicle expenses you can have reimbursement for. The easiest way to do this is by keeping a mileage logbook where you write all the necessary information. Simply using the calculator to estimate your reimbursement is not enough for you to be paid out.
How to prepare for calculating your reimbursement
By keeping track of your mileage and total car expenses in a logbook, whether it's an Excel sheet, a PDF, a physical notebook or an app, you can determine your work-related car expense deductions.
One thing to remember when keeping a mileage logbook is that if you use the same vehicle for business and private purposes, then you need to log both types of trips. That is because you will need to be able to show the exact percentage of your vehicle used for business purposes. The CRA requires you to keep your records for six years from when you turn in your tax return, in case they need you to substantiate your claims.
What should a logbook include?
There are a couple of different ways to keep a logbook but the basic things you must not forget to always track according to the CRA are:
- Total distance driven for the year
- Breakdown of business vs personal use
- Expenses for the vehicle
Furthermore, for all trips you must record the following:
- Purpose; and
- Number of kilometres driven
Learn more about keeping a CRA-compliant logbook.
If you are worried you may forget to log all your trips, a mileage tracker is one of the easiest ways to make sure you never forget. Driversnote offers automatic tracking for free and can help you never miss a trip again.
- CRA Mileage Rate 2023
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What we do
Mileage rate 2023 in Canada. See when the new rate will be announced by the CRA and how to claim mileage in the new year with the CRA 2023 mileage rate.
See the pros and cons of company cars and car allowances in Canada and decide which is right for your company - make the best choice for your business & employees.
See common tax deductions for self-employed individuals in Canada and how to claim them at tax time. Maximize your earning by deducting business-related expenses