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 rates 2020
The mileage rates 2020 were 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.
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.
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