Mileage Calculator Canada [Updated For 2023]
Use the 2023 mileage calculator below to get an overview of how much you can receive as vehicle mileage reimbursement or deduction from the CRA for the year based on your work-related kilometres. If you are looking for a mileage tracker and logbook - check out the automatic Driversnote mileage tracker app.
Mileage calculator with the 2023 rates
The CRA sets a standard mileage rate each year which is used to calculate your mileage reimbursement. The 2023 CRA mileage rate is $0.68 for the first 5000km driven for business and $0.62 per kilometre over 5000km.
Use the calculator below to estimate the reimbursement or CRA deduction you are entitled to for your 2023 business kilometres.
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 say that by June 2023 your logbook shows a total of 6,000 km for business purposes.
All you need to do is multiply the 6,000 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 2023 is 68¢ and after 5000km it is 62¢. Therefore you would calculate your reimbursement like this:
- 5000 (first 5000 km) x 0.68 = $3400 (Your reimbursement for the first 5000 km)
- 1000 (Remaining km) x 0.62 = $620 (Your reimbursement for the km after the first 5000)
- Now combine the two to get the total mileage reimbursement:
- 3400 + 620= $4020 (total reimbursement)
If you have logged all the required information 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.
Using the mileage calculator for reimbursement
In order to receive the calculated mileage reimbursement, you must be able to prove that you have driven kilometres for business purposes. To do so, you must keep a mileage logbook where you record your driven kilometres. Learn more about keeping a CRA-compliant logbook. Simply using the calculator to estimate your reimbursement is not enough for you to be paid out.
Prepare your car expenses claim
By keeping track of your mileage 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.
Remember that when keeping a mileage logbook you need to log both business and personal 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.
Worried you may forget to log all your trips? A mileage tracker is 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
- Company Cars vs Car Allowance: Which Is Best for Your Company?
- Personal Use of Company Cars - Is It a Taxable Benefit?
Automate your logbook
See the methods and a step-by-step explanation of the five steps to claiming motor vehicle expenses from the CRA as a self-employed individual or an employee.
CRA Mileage rate 2023 in Canada. See the new CRA per-km rate for business kilometres 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.