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The CRA Mileage Rate - All You Need To Know
December 20, 2023 - 2 min read

The CRA Mileage Rate - All You Need To Know

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

What is the current mileage rate?

The 2024 CRA mileage rates are 70 cents per kilometre for the first 5,000 km, and 64 cents per km after that. The Territories' 2024 rates are 74 cents per km for the first 5,000 km and 68 cents per km after that.

The 2023 mileage rates are:

  • 68 cents per km for the first 5000 km, seven cents higher than the 2022 rate
  • 62 cents for each additional business km
  • 72 cents per km for the first 5000 business km, and 66 cents for each additional kilometre for the Territories.

For any trips taken from 1 January 2022 till 31 December 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.

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What was the CRA km rate in 2021?

The CRA per km rate for the 2021 tax year 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 km when you travel for business.

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

What is the current CRA km rate an employer should provide?

Usually, employers provide the same amount as the standard CRA per km rate for the year. However, in some cases, your employer may pay you more or less than the current rate. If you think the amount is too high or too low and you might get taxed, 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 per km rate set by your employer.

What was the mileage rate before 2021?

If you need to work out any previous reimbursements or deductions in 2020 or earlier, then you need to use the CRA km rate for the corresponding tax year. The 2020 rate was the same as 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.

See how to claim medical travel expenses in Canada.

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 a deduction from the tax authorities when you file your tax report. As an employee, your employer will likely be the one to reimburse you by paying you out the reimbursement on a per-km basis, most often set at the current year’s CRA km rate.

In either case, you will need adequate mileage log 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 2024, then you should try to pick a mileage app or logbook that allows you to do this.

While most apps allow this, it’s not all, so make sure to find a solution that suits your needs on how you want to log your trips.

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