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May 10, 2022 - 2 min read

Mileage rates for 2021 and previous years

Each year, the CRA issues the standard mileage rate for the coming year. The rate covers the costs of using your personal vehicle for work-related driving.

If you want to learn more about mileage reimbursement and deductions in Canada, we have written quick guides to deducting your business-related driving expenses for self-employed, as well as a guide for employees receiving reimbursement from employers.

Be aware that the standard automobile allowance rates are optional — your employer may use different rates.

The CRA mileage rate for 2021

The mileage rate used from January 1st 2021 to December 31st 2021 was:

  • 59 cents per km for the first 5000 driven kilometres
  • 53 cents per km after that

An additional 4 cents per km for the Northwest Territories, Yukon and Nunavut.

The CRA mileage rate for 2020

The mileage rate in 2020 was the same as for 2021:

  • 59 cents per km for the first 5000 kilometres driven
  • 53 cents per km after that,

For the Northwest Territories, Yukon and Nunavut, an additional 4 cents per kilometre.

Prior years’ mileage rates - 2015 to 2021

Financial Year Automobile allowance rate for the first 5,000km driven Automobile allowance rate per km above 5,000

Additional business travel allowances in the Northwest Territories, Yukon, and Nunavut.

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

How the mileage rate is decided

To determine next year's rate, the CRA looks at the average costs of owning and operating a vehicle over a year.

In short, the rate for business use is based on the average cost of ownership plus the average operating costs of a car. If you are from Quebec or the rest of Canada, the rates are the same.

FAQ

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.
Every year in the middle or by the end of December, you can expect the CRA to release the new mileage rates for the following year.

How to automate your mileage logbook

Manually filling out your logbook can get tedious - see how to automatically track trips for your mileage reimbursement or deductions.

This material has been prepared for general informational purposes only, and should not be taken as professional advice from Driversnote. You should consider seeking independent legal, taxation, or financial advice from a professional to check how this information relates to your own circumstances. Relevant laws also change from time to time.