CRA mileage rate 2026: 73¢ per km

From 1 January 2026, the CRA reasonable per-kilometre allowance rate is 73¢ per km for the first 5,000 business km in the year, then 67¢. Before that it was 72¢ per km for the first 5,000 business km in the year, then 66¢.

Checked against Canada Revenue Agency on 1 October 2026. Official source

Who uses this rate

• Employers paying a per-kilometre allowance for business driving. An allowance at or under these rates is considered reasonable, so it isn't taxable for the employee.
• Self-employed people don't use this rate. They deduct actual vehicle costs in proportion to business kilometres, so the log matters just as much.

What your mileage log needs

The CRA expects a logbook with the date, destination, purpose and kilometres of each business trip, plus the odometer reading at the start and end of the year.

Good to know

• The higher rate covers the first 5,000 business km in the year. Every km after that gets the lower rate.
• Yukon, the Northwest Territories and Nunavut get 4¢ more per km. Milo uses the provincial rate.
• Driving between home and your regular place of work is personal, not business.

Rate history

Guides

• Can I claim mileage if my employer reimburses me?
• Deducting car expenses when you're self-employed in Canada

Rates in other countries