CRA Mileage Rate 2024

The CRA has issued the mileage rate for 2024, applicable from January 1 until December 31, 2024. The mileage allowance is 70 cents for the first 5,000 kilometres and 64 cents for each additional kilometre. In the Territories, the mileage rate is 74 cents per km for the first 5,000 kilometres and 68 cents after that.
 

Changes to the mileage rate for 2024

Each year, the CRA mileage rate is determined on the basis of the average costs of owning and operating a vehicle over the previous year in Canada. 

This year's more moderate increase of two cents, compared to the 2023 seven cents increase, was expected due to the more stable fuel prices in 2023, compared to the previous year.

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How you can use the 2024 CRA mileage rate

The Canadian mileage rate is used by employers for the reimbursement of employees' business-related kilometres when they use their personal vehicles.

If you are an employee

If you are an employee, you can expect your per-kilometre allowance for business driving to increase by two cents this year. However, note that employers are not required to use the official CRA rate and may choose to reimburse you at a different rate. You will have to log your business trips to show proof of the kilometres eligible for mileage reimbursement.

If you are self-employed

If you are a self-employed individual, an employee or a business owner deducting business-related vehicle costs at tax time, you can only claim actual expenses. However, if you are a salaried employee and a Northern resident you can choose to claim your business-related vehicle costs by the actual costs or simplified method. The simplified method allows you to claim mileage with the CRA per-kilometre rate and you don't have to keep receipts of all actual vehicle expenses throughout the year.

You can find a step-by-step walkthrough on how to claim vehicle expenses in our dedicated guide on claiming motor vehicle expenses from the CRA. For an overview of all rules surrounding mileage reimbursement and deductions in Canada, start with our CRA mileage guide.

If you are an employer

As an employer, you are not obliged to use the rate set by the CRA. You can choose to reimburse employees at a higher or lower than the official per km vehicle allowance. 

The CRA considers the rate they set to be reasonable and too high or too low per km reimbursements are considered not reasonable. If you provide employees with a vehicle allowance that the CRA deems not reasonable, these allowances will be considered a taxable benefit and will have to be included in your employees' income.

It is common for employers to stick to the official rate for reimbursement, due to the added administrative burden that comes with providing vehicle allowances the CRA does not deem reasonable.

Besides the rate you reimburse employees at, you will further need to ensure that your employees log their business kilometres and reimbursement hasn't already been paid out for the same use of the vehicle for a reasonable and non-taxable vehicle allowance.

See the CRA announcement on 2024 vehicle allowance rates published on December 18.

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