CRA Mileage Rate 2024
While we wait for the CRA to announce the 2024 mileage rates in Canada, we can look at what the current rates are, when to expect the announcement of the new rates and how to use the rate per kilometer depending on your employment situation.
2024 mileage rates in Canada
Usually, the Canadian Revenue Agency publishes the new year’s rates in December of the previous year. This means we soon expect an update from the CRA on what the 2024 official mileage rates will be. The 2024 rates will be applicable from January 1st, 2024 to December 31st, 2024.
You will be able to use the 2024 mileage rate to calculate your business driving reimbursement for that year.
If you are employed, your employer is likely reimbursing you for your business-related car expenses. The highest tax-free rate at which your employer will be able to reimburse you for these expenses in the new year will be the per-kilometer rate set by the CRA for 2024. However, employers are not obliged to use the official rate - they may choose to provide a lower or higher reimbursement rate. In case you receive no reimbursement for your work kilometers, you will be able to deduct actual and reasonable expenses you have accrued for the business use of your personal vehicle. Read more in our guide to mileage claims in Canada.
Self-employed persons can claim all business-related kilometers by the simplified or the full logbook method. Learn more about how you can claim your business kilometers as self-employed in Canada.
Current CRA mileage rates
The still applicable until December 31st, 2023 rates for business mileage reimbursement are:
- 68 cents per kilometer for the first 5000 km driven
- 62 cents for each additional kilometer
The Northwest Territories, Yukon and Nunavut mileage rates are:
- 72 cents per kilometer for the first 5000 km
- 62 cents per kilometer after that
Looking for more information on the 2023 rates? See our 2023 CRA mileage rate article.
Will the CRA mileage rate increase in 2024?
While we can’t say for sure if the 2024 rate per business kilometer will increase, the CRA does revise it each year and amends it based on the costs of operating and owning a car. The 2023 rate saw a steep increase of seven cents per kilometer compared to 2022.
Remember to keep track of business kilometers
You will need to show proof of the business kilometers you’ve driven either to the CRA for your mileage deduction, or to your employer for the payout of business mileage reimbursement. The proof is in the form of a log and must contain specific details of each trip you take. Find out what information you will need to record in your mileage log.
If you drive for work purposes, we recommend automating as much of this process as possible in order to save time and make sure every reimbursable trip is correctly noted down. With an app like the Driversnote mileage tracker your work day will become hassle-free. Driversnote tracks your mileage automatically for a CRA-compliant log which you can generate with a single tap, anytime you need to.
The CRA 2024 mileage rate will be announced soon - learn everything you need to know so far, including how you can use the rate according to your situation.
Need to know how to receive travelling expenses reimbursement from your employer? Learn about CRA travel expenses and if they are taxable as part of your income.
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.