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.
See the methods and a step-by-step explanation of the five steps to claiming motor vehicle expenses from the CRA as a self-employed individual or an employee.
CRA Mileage rate 2023 in Canada. See the new CRA per-km rate for business kilometres and how to claim mileage in the new year with the CRA 2023 mileage rate.
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