November 29, 2021

CRA mileage rate 2022

UPDATED 20, JAN, 2022 ♦ 4 MIN READ

The CRA sets a standard mileage rate each year for employers to use as a reasonable mileage rate when reimbursing their employees. The new 2022 mileage rate is now out and can be used from January 2022. 

So what is the CRA mileage rate 2022? 

The CRA mileage rate 2022 is 61¢ per kilometre for the first 5,000 kilometres driven and 55¢ per kilometre driven after that. Note that in the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.

mileage log app

What will the automobile allowance rate for 2022 mean for me? 

If you are an employer reimbursing your employees and using the standard rate, this would mean that you have to use the updated rate for 2022.

If you are an employee receiving reimbursement, this could mean that the amount of reimbursement you receive from your employer may change depending on the new rate and your employer's choice for reimbursement (they may choose to reimburse you based on the standard rate or not). 

If you are self-employed the 2022 mileage rate will mean that you will receive a different amount of deduction from your taxes. 

Example of mileage reimbursement with the CRA 2022 rate:

Taking into consideration the CRA mileage rate for 2022 which is $0.61 per km for this example. Now imagine that in 2022, one of your employees drove 500 km.

0.61 * 500 = $305  This is the maximum tax-free amount you can compensate your employee if they drove 500 km for business purposes.

How does the CRA decide the automobile allowance rate for 2022? 

The CRA tries to find a rate that is reasonable for the expenses one may incur when driving for business purposes. 

The CRA calculates the new mileage rate based on a number of factors such as prices of petrol, cost of car maintenance. Browse the CRA mileage rates from previous years here.

Does my employer have to reimburse me the 2022 CRA mileage rate?

No, your employer actually doesn’t have to reimburse you for the 2022 CRA mileage rate. They canchoose a higher or lower rate than the standard. If they reimburse you for a rate higher than the standard, however, you will have to pay income tax on the amount over the standard rate per mile. Using the standard mileage rate for reimbursement is common and many employers do that.

The current CRA mileage rate 

The 2022 rate will apply from January 2022. The current rate together with previous CRA rates can be found here

What else do I need to get reimbursed in 2022? 

To get reimbursement in 2022, there are some things you must keep on doing that you have been doing in 2021.

  • Keeping a logbook - it is likely that keeping a logbook will remain the best method for you to log your trips and make sure you can get reimbursed.
  • Tracking your mileage will likely remain the best way for you to prove that you have traveled the said mileage.
  • Reporting. If you want to receive reimbursement you must be clear and diligent with your mileage report. Always make sure to fill them out carefully, double check and send them over to your employer on time.
  • Keeping track of your trips appears to be a simple task in theory. In effect, the CRA has the authority to require ALL of your business data, including business expense records, odometer readings taken at the mechanic, traffic cameras, tolls, and fees. Make sure to keep all relevant information.

 

Let us know if you have any questions about the CRA mileage rate for 2022. 


What is the mileage rate for 2022 in Canada?

The Canadian mileage rate for 2022 is 61¢ per kilometre for the first 5,000 kilometres driven and 55¢ per kilometre driven after that. Note that in the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.