CRA Mileage Rate 2023
The new CRA mileage rate for 2023 has been officially announced. Usually, the CRA publishes the new year’s mileage rate during the month of December.
Mileage rate Canada 2023
The official rates for 2023 are:
- 68 cents per km for the first 5000 km driven, up seven cents since from the 2022 rate
- 62 cents for each additional kilometre
The territories' limit also goes up by 7 cents, to 72 cents per km for the first 5000 business km, and 66 cents for each additional kilometre.
The new CRA mileage rate for 2023 can be used by all who use their personal vehicles to drive for work-related purposes and cover the associated expenses themselves.
If you are a self-employed individual in Canada, you will be able to use the new rate to claim a tax deduction for the business kilometres you’ve accrued throughout 2023. Read more about claiming kilometres at tax time as self-employed.
As an employee, it is likely that your employer will be reimbursing your business kilometres expenses. While employers are advised to use the official CRA mileage rate, keep in mind it is not mandatory and they may choose to reimburse you at a rate different than the 2023 mileage rate throughout the year. If you are not reimbursed for your expenses from your workplace, you will be able to claim a tax deduction for your business-related driving based on the per-kilometre rate, or the actual expenses you have for running and maintaining your vehicle for business purposes. For more information on employee reimbursement and deductions for business-related kilometres, see our CRA mileage guide for employees.
Check out our guide on how to claim mileage from the CRA in five simple steps for self-employed and employees.
How does the CRA set the 2023 mileage rate?
Every year the CRA revises the set per-kilometre rate and amends it based on several factors such as fuel prices, costs of maintenance, insurance and more. The 2023 CRA mileage rate is no exception. With the higher fuel costs throughout 2022, the Canada Revenue Agency has raised the 2023 official mileage rate by seven cents - a solid increase compared to the rate's amendments in previous years.
Need to find out the 2022 CRA rate? See more information about the 2022 mileage rate in Canada.
The CRA 2024 mileage rate will be announced soon - learn everything you need to know so far, including how you can use the rate according to your situation.
Need to know how to receive travelling expenses reimbursement from your employer? Learn about CRA travel expenses and if they are taxable as part of your income.
See the pros and cons of company cars and car allowances in Canada and decide which is right for your company - make the best choice for your business & employees.