CRA Mileage

If you drive your personal vehicle for business-related trips, you might be entitled to claim mileage from the CRA. The term “CRA mileage” refers to the schemes the revenue agency offers for reimbursing employees, self-employed and business owners for such expenses.

The CRA offers two different methods by which you can claim your business mileage.

You can be reimbursed for your CRA mileage by the CRA per-kilometre allowance, or
As self-employed, you can claim mileage from the CRA by the logbook method, which is based on your actual vehicle expenses

If you are claiming reimbursement for your business kilometres from your employer at the CRA mileage rate (per-kilometre allowance), your employer will generally let you know what records they need as proof for your claim.

The 2023 CRA mileage rates are:

68 cents per kilometre for the first 5000 kilometres
62 cents per kilometre for each additional kilometre

In the Northwest Territories, Yukon, and Nunavut, you can claim an additional 4 cents per kilometre for your business-related driving.

If you are not reimbursed by your employer for your business driving expenses, you can claim mileage from the CRA based on your actual vehicle expenses that relate to the business use of that vehicle. Read below about the records you need to keep in order to claim actual expenses.

As self-employed using the logbook method, you can claim CRA mileage for all actual vehicle expenses you’ve accrued for the business portion of your driving. You will need the following records to claim mileage from the CRA:

A full logbook, containing the date, destination, purpose and number of kilometres for each business trip. You must also include odometer readings from the start and end of the year.
You must record your personal trips in order to show the business use of the vehicle for the year.
All receipts and invoices connected to your vehicle expenses.

If, for example, 40% of your driving was business-related, you will be able to claim 40% of your vehicle expenses for the year.

Find out more about the logbook requirements for claiming CRA mileage and how to claim CRA mileage in 5 simple steps.

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FAQ

Is mileage a taxable benefit in Canada?

So long as you receive mileage reimbursement at the CRA mileage allowance rate per kilometre, your mileage will not be taxed.

When can you claim mileage?

If you claim mileage deductions from the CRA, you can submit your claim at tax time for the whole tax year. If you receive mileage from your employer, they will know how often they pay out mileage reimbursements.

What does CRA allow for mileage?

The 2022 CRA rates are 61 cents per kilometre for the first 5000 km and 55 cents per kilometre after that. The new, 2023 mileage rate is 68 cents per km for the first 5000 km, and 62 cents per km after that.