What is the CRA mileage rate for 2026?
The Canada Revenue Agency lists prescribed per-kilometre automobile allowance rates used when an employer pays an employee for using their own vehicle for employment-related driving.
For 2026, the provincial rate is 73 cents per kilometre for the first 5,000 kilometres and 67 cents for each additional kilometre. In Yukon, the Northwest Territories and Nunavut, an additional 4 cents per kilometre applies, making the rates 77 cents and 71 cents respectively.
What does the rate mean for employees?
When an employee uses their own vehicle for employment duties, an employer may pay a per-kilometre allowance. CRA generally considers the prescribed rate when determining whether an allowance is reasonable.
A rate that is higher or lower can still depend on the facts of the situation, but an allowance that is not considered reasonable may have different tax treatment.
What about self-employed drivers?
If you are self-employed — including many delivery drivers, contractors and sole proprietors — the 73¢ rate is not simply multiplied by your business kilometres to determine your vehicle deduction.
CRA generally requires you to determine the business portion of eligible motor vehicle expenses. If a vehicle is used for both business and personal driving, the calculation is generally based on the proportion of kilometres driven to earn business income.
Eligible expenses can include items such as fuel, insurance, maintenance and repairs, licence and registration fees, and certain interest or leasing costs, subject to the applicable CRA rules and limits.
What mileage records should you keep?
CRA says vehicle records should support both your total driving and the kilometres driven to earn business income. For business trips, records should include the date, destination, purpose and kilometres driven.
Odometer readings at the beginning and end of the fiscal period are also part of a complete vehicle record.
CRA mileage rate vs. CRA travel rates
You may also find CRA tables showing different kilometre rates for each province and territory. Those are CRA Travel Directive kilometric rates for CRA employees and other people covered by that directive.
They are different from the prescribed automobile allowance rates of 73¢ and 67¢ used for general employer automobile allowance purposes in the provinces.
Official sources
- Canada Revenue Agency — Automobile and motor vehicle allowances
- Canada Revenue Agency — Motor vehicle expenses
- Canada Revenue Agency — CRA Travel Directive rates