CRA Mileage Rate 2023
The current year is finishing and we expect a new CRA mileage rate to be officially announced soon. Usually, the CRA publishes the next year’s mileage rate during the month of December.
While we wait for the official per-kilometre allowance for 2023 to be published, here is the current, 2022 allowance for business-related driving:
- 61 cents per kilometre for the first 5000 km driven
- 55 cents per kilometre after that.
Mileage rate Canada 2023
The new mileage rate for 2023 can be used by all who use their personal vehicles to drive for work-related purposes and cover the associated expenses themselves.
If you are a self-employed individual in Canada, you will be able to use the new rate to claim a tax deduction for the business kilometres you’ve accrued throughout 2023. Read more about claiming kilometres at tax time as self-employed.
As an employee, it is likely that your employer will be reimbursing your business kilometres expenses. While employers are advised to use the official CRA mileage rate, keep in mind it is not mandatory and they may choose to reimburse you at a rate different than the 2023 mileage rate throughout the year. If you are not reimbursed for your expenses from your workplace, you will be able to claim a tax deduction for your business-related driving based on the per-kilometre rate, or the actual expenses you have for running and maintaining your vehicle for business purposes. For more information on employee reimbursement and deductions for business-related kilometres, see our CRA mileage guide for employees.
Check out our guide on how to claim mileage from the CRA in five simple steps for self-employed and employees.
How will the CRA set the 2023 mileage rate?
Every year the CRA revises the set per-kilometre rate and amends it based on several factors such as fuel prices, costs of maintenance, insurance and more. The 2023 CRA mileage rate will be no exception. With the higher fuel costs throughout 2022, we expect that the Canada Revenue Agency may raise the 2023 official mileage rate. However, only time will tell. See more information about the current 2022 mileage rate in Canada.
Keep on checking this article - we will keep an eye out for the CRA update on the 2023 mileage rates and publish the new rates as soon as they are out.
- Company Cars vs Car Allowance: Which Is Best for Your Company?
- Self-Employed Tax Deductions You Can Claim In Canada
- How To Keep a CRA Compliant Mileage Log
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