Latest update: January 15, 2026 - 5 min read

Historic Mileage Allowance Rates in Canada

The CRA sets annual vehicle allowance rates, often referred to as mileage rates, that employers use to reimburse employees for business use of their personal vehicles. The rates cover all vehicle-related costs, including fuel, maintenance, insurance, and depreciation.

Mileage allowance rates from 2010 to 2026

Year	First 5 000 km ($/km)	After 5 000 km ($/km)	Additional allowance for the Territoires
2026	73c	67c	4c
2025	72c	66c	4c
2024	70c	64c	4c
2023	68c	62c	4c
2022	61c	55c	4c
2021	59c	53c	4c
2020	59c	53c	4c
2019	58c	52c	4c
2018	55c	49c	4c
2017	54c	48c	4c
2016	54c	48c	4c
2015	55c	49c	4c
2014	54c	48c	4c
2013	54c	48c	4c
2012	53c	47c	4c
2011	52c	46c	4c
2010	52c	46c	4c

Changes in mileage allowance rates

The CRA revises the rates annually to ensure that employees are fairly compensated for the costs of operating their vehicles. They take into account factors such as fuel prices, inflation, vehicle depreciation, and maintenance costs.

Note that while the CRA issues rates every year, they are not mandatory. Employers can choose to reimburse employees at a different rate. See more about mileage reimbursement for employees and employers.

The rates have gone up nearly every year. This steady rise reflects the increasing vehicle operation costs, especially with inflation and surging fuel prices in recent years.

Mileage allowance rates 2026

The CRA revised and updated the 2026 mileage rates, with a 1-cent increase.

73 cents per km for the first 5,000 km
67 cents per km after that
An additional 4 cents per kilometre for the Territories

Mileage allowance rates 2025

Due to high fuel costs, the CRA revised and again updated the 2025 mileage rates by 2 cents.

72 cents per km for the first 5,000 km
66 cents per km after that
An additional 4 cents per kilometre for the Territories

Mileage allowance rates 2024

The 2024 rate revision included a 2-cent increase to account for inflation and expensive vehicle maintenance.

70 cents per km for the first 5,000 km
64 cents per km after that
An additional 4 cents per kilometre for the Territories

Mileage allowance rates 2023

2023 saw the highest rate increase in the past decade due to the post-pandemic economic recovery, global fuel shortages, and high inflation. The rates went up by 7 cents compared to 2022.

68 cents per km for the first 5,000 km
62 cents per km after that
An additional 4 cents per kilometre for the Territories

Mileage allowance rates 2022

The CRA increased the 2022 mileage rates by two cents to account for the increased costs of running and maintaining a vehicle.

61 cents per km for the first 5,000 kilometres
55 cents per km after that
An additional 4 cents per km for the Territories

Mileage allowance rates 2021

The CRA revised but did not change the 2021 rates from the previous year, signalling no big change in fuel and vehicle maintenance costs and inflation. The rates remained:

59 cents per km for the first 5,000 business kilometres
53 cents per km after that
An additional 4 cents per kilometre for the Territories

Mileage allowance rates 2020

The 2020 allowance rates went up by a cent compared to the previous year, increasing to:

59 cents per km for the first 5,000 business kilometres
53 cents per km after that
An additional 4c per kilometre for the Territories

Why do the rates change after 5,000 km

The mileage allowance rate decreases after the first 5,000 kilometres to account for economies of scale. The initial higher rate covers the fixed costs for a vehicle, such as insurance, registration, and basic maintenance. After 5,000 km, the rate is reduced because variable costs like fuel and wear and tear are comparatively lower per kilometre.

The Territories always have a higher rate

The rates for employees in Yukon, the Northwest Territories, and Nunavut are consistently higher than in the rest of Canada. The reasons for this are the harsh weather conditions, which increase vehicle wear and tear, and the higher fuel, vehicle repair, and service in these territories.

FAQ

The Ontario mileage rate for 2021 was 59 cents for the first 5000 kilometres and 53 cents for all kilometres driven after that.

The rates for 2020 were $0.59 per kilometre for the first 5,000km driven for business and $0.53 per kilometre driven for business after that. For all business-related driving in the Northwest Territories, Yukon, and Nunavut, there was an additional allowance of $0.04 per kilometre.

The CRA mileage rate for 2019 was 58 cents for the first 5000 km driven and 52 cents for all km driven after the first 5000.