Current Mileage Rates In Canada
The current mileage rate in Canada for 2022 is:
- 61 cents per kilometre for the first 5,000 kilometres driven
- 55 cents per kilometre driven after that
Note that in the Northwest Territories, Yukon, and Nunavut, there is an additional 4 cents per kilometre allowed for travel.
Here is the CRA announcement of the 2022 mileage rates where you can read more.
Previous mileage rates Canada - 2021
For business-related mileage incurred from January 1, 2021, the CRA mileage rates were:
- $0.59 per kilometre for the first 5,000km driven for business; and
- $0.53 per kilometre driven for business after that.
There was an additional $0.04 per kilometre driven in the Northwest Territories, Yukon, and Nunavut.
Alternatives to the mileage rate in Canada
An employer can choose to pay out mileage reimbursement by the mileage rate set by the CRA or reimburse specific expenses for employees’ business-related driving.
As a self-employed individual or a business owner, you deduct the costs of operating your vehicle for business by the logbook method. Read more about how to calculate your mileage deductions if you are self-employed.
The current mileage rate in Canada for business
The mileage rate in Canada for 2022 is 61¢ per kilometre for the first 5,000 kilometres driven. After 5000 km the rate drops to 55 cents per km driven for business purposes. In 2021, the automobile allowance rate started at 59 cents per kilometre driven for business. After 5,000 kilometres, the rate dropped to 53 cents per km driven for business. Find the 2021 mileage rate and previous rates set by the CRA in our article.
Usually, when people talk about the CRA mileage rate or the cents per kilometre rate, they mean the one used for business - that is when you drive your personal vehicle for business purposes and are reimbursed the costs. The CRA sets the standard automobile allowance rate each year, though your employer may offer a different rate.
As an employee, your employer can choose the rate that they reimburse mileage costs at. It’s up to your employer to set their rate and rules for reimbursement, but the CRA’s automobile allowance rate is the standard. If you're paid a higher or lower per kilometre rate than the CRA’s standard rate, those payments may be considered taxable income.
How to track and record mileage
There are many options, but mileage tracking apps are your go-to. By using your phone's GPS, you can easily track and log all your trips. They also store your information and generally allow you to classify each trip as personal or business, as per the rules set down by the CRA. We've got you covered with a simple, free and user-friendly app whether you use Android or iOS. Most apps use the standard CRA vehicle allowance rates but also allow you to input your own rates if needed.
Other alternatives are keeping a physical logbook or using a spreadsheet. Whatever you choose, be sure to understand what information you need to record for your employer or the CRA. The biggest advantage when using a logbook app in comparison to a spreadsheet is that it may take you a lot less time to log trips and there is no chance of you losing your data (as you could lose a notebook).
How to automate your mileage logbook
CRA Mileage Guide
- Claim Motor Vehicle Expenses In 5 Steps
- Mileage Logbook Requirements
- Mileage Rates For 2021 And Previous Years
- Current CRA Mileage Rates
- For Self-Employed
- Calculate Your Reimbursement
- Is Car Allowance Taxable?
- CRA Mileage Rate 2022
- For Employers
- For Employees