October 25, 2021

CRA mileage rates - all you need to know for reimbursement

To calculate your reimbursement properly, you need to make sure that you are using the proper mileage rates - the CRA mileage rate 2021, 2020 or earlier. It can sometimes be confusing to figure out your reimbursement with so much information online, but when it comes to the rates there are just a few things you need to know.

What is the current CRA mileage rate? 

For any trips taken after January, 2022, you should use the 2022 mileage rate which is 61¢ per kilometre for the first 5,000 kilometres driven. Learn more about the 2022 rates here

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What was the CRA mileage rate 2021?

The CRA mileage rate 2021 was 59¢ per kilometre for the first 5,000 kilometres driven and 53¢ per kilometre driven after that. However, if you are located in the Northwest Territories, Yukon, and Nunavut, you were allowed an additional 4¢ per kilometre when you travel for business.

How much should my employer pay me per km? 

It is usual for your employer to pay you the same amount as the standard CRA mileage rate for the year. However, in some cases, your employer may pay you more or less than the rate for 2021. If you feel like the amount is too high or too low, you should speak to your employer and find out why you are reimbursed at that specific rate. You can also contact the CRA directly to ask them any questions or concerns you may have about the reimbursement rate set by your employer. 

What was the CRA mileage rate 2020 and before?

If you need to find out how much you should be reimbursed for some trips you made in 2020, then you need to use the automobile rate for that period. The 2020 rate was not much different than that in 2021:

  • $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 is an additional allowance of $0.04 per kilometre.
  • Make sure to use this mileage rate for any business trips you made between January 1st, 2020 and December 31st, 2020. 

The mileage rate for 2019 was

  • $0.58 per kilometre for the first 5,000km driven for business
  • $0.52 per km for business after that; and
  • For all business-related driving in the Northwest Territories, Yukon, and Nunavut, there is an additional allowance of $0.04 per kilometre.

If you need information on the CRA automobile rates for previous years check the mileage rates here

When should I get paid for business trips?

If you use your personal vehicle for business purposes either as self-employed or as an employee, you are entitled to reimbursement for all costs incurred. As a self-employed person, you will get reimbursement from the tax authorities when you file your tax report. As an employee, your employer will likely do this and they will be the one to pay you out the reimbursement amount. 

In either case, you will need adequate records which use the correct mileage rate for your case to get reimbursement. If you are an employee and you need to calculate your reimbursement using mileage rates other than the standard CRA mileage rate 2021, then you should try to pick a mileage app or logbook that allows you to do this.

While most apps allow this, some don’t, so it is something to look out for when you pick how you want to log your trips. 


If you have any questions about the CRA mileage rate for 2021, 2020 or before, feel free to contact us at support@driversnote.com. We are happy to make your mileage logging easier!