CRA mileage rate 2021
The tax authority announced the CRA mileage rate for 2021 at the end of 2020, setting the 2021 mileage rate at 59 cents per kilometre for the first 5000km, and 53 cents per kilometre after that - remaining at the same level as in 2020.
Never miss a trip. With Driversnote mileage tracking app you have the tool to ensure every business kilometer you drive is properly logged.
Mileage rates Canada 2021
This year, the CRA has kept the same cents per kilometre reimbursement for business-related driving as last year.
- $0.59 per kilometre for the first 5000 business-related kilometres
- $0.53 per kilometre after that
The Northwest Territories, Yukon and Nunavut benefit from an additional 4 cents per kilometre.
You can use the CRA mileage rate for 2021 to calculate your business driving expenses for the year.
Note that the 2021 mileage rate is optional — your employer may use different rates for reimbursement.
See previous years' CRA mileage rates.
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What does the CRA mileage rate 2021 cover?
The CRA mileage rate 2021 considers both the variable and fixed costs of operating a vehicle, such as gas, oil, tires, maintenance, and repairs, as well as the fixed expenditures, such as insurance, registration, and depreciation or lease payments.
Keeping a mileage logbook for 2021
Don't forget to write down all the required by CRA details and keep a compliant logbook for your business kilometres in order to receive your reimbursement or claim mileage deductions at the end of the year. See the CRA mileage log requirements in our guide. If you drive a lot, writing down your mileage can become tedious - we recommend using a mileage tracker app like Driversnote, which will help you track your kilometres automatically, record all the needed information and create CRA-compliant mileage reports.
How to automate your mileage logbook
CRA Mileage Guide
- CRA Mileage Rate 2021
- Current CRA Mileage Rates
- Is Car Allowance Taxable?
- CRA Mileage Rate 2022
- How To Calculate Your Reimbursement
- Mileage Rates For 2022 And Previous Years
- Claim Motor Vehicle Expenses In 5 Steps
- For Self-Employed
- For Employers
- For Employees
- Mileage Logbook Requirements