April 19, 2021

Mileage Reimbursement Guide

Updated SEP 23, 2021

Welcome to Driversnote’s guide to mileage reimbursement and deduction in Canada. Here, you'll find a collection of articles and resources that will walk you through the rules around how to deduct your mileage expenses as an employee or self-employed individual. You can also find information on how to reimburse your employees for their business-related car expenses as an employer. 

Residents can deduct business mileage on a cost-per-kilometer basis through the Canada Revenue Agency, also known as the CRA which is the Canadian equivalent of the IRS. Knowing the laws and requirements for mileage records is crucial since it might mean the difference between getting taxed or not. For anyone living in Quebec - you need to check out the requirements by the Quebec Revenu here

In this updated guide for 2021, you can find answers to the following questions about mileage reimbursement in Canada:

  • Is mileage reimbursement taxed as income? 
  • Are there requirements for mileage records? 
  • What are the automobile allowance rates for 2021?
  • Who sets the standard mileage rates? 
  • How do I best track my mileage? 
  • Do I have to reimburse my employees?
  • How can I calculate my mileage reimbursement?

For self-employed users, we recommend you check out our guide for the self-employed to begin with. We have similar guides for employees and employers as well. There’s also an article we’ve written if you’re looking to claim back your business-related car expenses through your tax deduction.

Check the menu for an overview of articles. We hope you find what you're looking for! If not, feel free to reach out and ask us any questions you may have.

This material has been prepared for general informational purposes only, and should not be taken as professional advice from Driversnote. You should consider seeking independent legal, taxation, or financial advice from a professional to check how this information relates to your own circumstances. Relevant laws also change from time to time.