CRA mileage rate 2022
The CRA sets a standard mileage rate each year for employers to use as a reasonable mileage rate when reimbursing their employees. Find out the new 2022 mileage rate and how to use it.
The 2022 CRA mileage rate is:
- 61 cents per kilometre for the first 5000 km driven
- 55 cents per kilometre after that.
The Northwest Territories, Yukon, and Nunavut have an additional 4¢ per kilometre allowed for travel.
What the mileage rate for 2022 will mean for you
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 for all kilometres your employees drive throughout the year for business-related purposes.
If you are an employee receiving reimbursement, this could mean that the amount of reimbursement you receive from your employer changes 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).
How to use the 2022 CRA mileage rate
The CRA mileage rate for 2022 is $0.61. Now imagine that in 2022, one of your employees drives 500 km.
0.61 * 500 = $305 This is the maximum tax-free amount you can compensate your employee if they drive 500 km for business purposes.
How the CRA decides the 2022 mileage rate
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 fuel prices, and the cost of car maintenance. Find the 2021 CRA mileage rates and previous in our guide.
What you will need to get reimbursed in 2022
To ensure you will receive reimbursement in 2022 from your employer, make sure to do the following:
- Record your business-related driving - your employer should let you know what to record in your logbook, but generally, this will include the date, purpose and kilometres driven for each trip.
- Keep your log updated - logging your business trips daily or weekly is the surest way you won’t forget some of the trips you take or details related to them and will help you not miss out on reimbursement.
- Report your mileage - if you want to receive reimbursement you must be clear and diligent with your mileage reports - double-check that the logged information is correct and send them over to your employer on time.
Are employers required to use the 2022 mileage rate?
No, employers are not required by the CRA to use the 2022 mileage rate for employees’ reimbursement during the year. They can choose a higher or lower rate than the standard.
If you are reimbursed at a rate higher than the standard, however, you will have to pay income tax on your mileage reimbursement. Using the standard CRA mileage rate is common practice, as it saves paperwork for the business.
How to automate your mileage logbook
CRA Mileage Guide
- Calculate your reimbursement
- Is car allowance taxable?
- Current CRA mileage rates
- CRA mileage rate 2022
- Mileage logbook requirements
- Mileage rates for 2021 and previous years
- For self-employed
- For employers
- For employees