CRA Mileage Rate 2026 and Vehicle Expense Calculator
The Canada Revenue Agency publishes reasonable per-kilometre rates each year. For 2026 those rates are 73¢/km for the first 5,000 kilometres and 67¢/km after that, with higher rates in the territories. This page shows the rates, works out an allowance, and estimates a self-employed vehicle deduction from your real costs.
CRA mileage rates for 2026
These are the CRA's reasonable per-kilometre allowance rates for 2026: the most an employer can deduct for tax-exempt allowances paid to employees who drive their own vehicle for work. Each rate went up by one cent from 2025. Self-employed people don't claim these rates; see the vehicle expense calculator below.
Sources
- Department of Finance Canada, 2026 automobile deduction limits and expense benefit rates
- CRA, Automobile and motor vehicle allowances
- CRA, Motor vehicle expenses (self-employed)
- CRA, Motor vehicle records (logbook)
Per-km allowance calculator
Enter the business kilometres.
This is the maximum reasonable tax-exempt allowance. An employer can pay less. Employers paying more, or a flat allowance not tied to kilometres, should check the CRA rules.
Self-employed vehicle expense calculator (T2125)
If you're self-employed, you claim your actual vehicle costs for the year multiplied by the share of kilometres you drove for business. This goes in Chart A and on line 9281 of Form T2125.
Enter business kilometres and total kilometres.
- CCA is separate: if you own the vehicle, its depreciation is claimed as capital cost allowance (CCA), not here. This calculator doesn't work out CCA.
- Keep a logbook: for each business trip record the date, destination, purpose and kilometres, plus your odometer reading at the start and end of the year. After one full base year, a three-month sample logbook can be used if your use stays within 10% of the base year.
These calculators give an estimate for general information only and are not tax, legal or accounting advice. Rules for vehicles, allowances and limits can be more detailed than shown here. Confirm with the Canada Revenue Agency or a qualified professional.
Allowance rates vs self-employed deductions
The 73¢ and 67¢ figures are not a deduction you claim on your own return if you work for yourself. They are the Canada Revenue Agency’s reasonable per-kilometre rates for 2026. An employer uses them when it pays you for driving your own vehicle for work. Within these rates, and based on kilometres, the allowance is generally not a taxable benefit.
Each rate went up by one cent from 2025. Northwest Territories, Yukon and Nunavut use 77¢ for the first 5,000 km and 71¢ after that.
If you are self-employed, do not multiply your business kilometres by 73¢. Add up what the vehicle cost you, then multiply by the share of kilometres that were for the business. Report that with Chart A and line 9281 of Form T2125.
How to work out your business-use %
Divide business kilometres by total kilometres. Total kilometres means every trip, from the odometer at the start of the year to the odometer at the end.
Example: 830 business km and 6,300 total km. 830 ÷ 6,300 is 13.2%. If your vehicle costs for the year were $5,000, the business portion is about $658.73 before capital cost allowance.
Use the full year, not a busy month, unless you are using the sample-logbook method the CRA describes. A week of personal travel lowers the percentage. A month of client visits raises it.
What counts as a vehicle expense
The usual costs are fuel and oil, insurance, maintenance and repairs, licence and registration, interest on a loan used to buy the vehicle, leasing costs, and smaller items such as car washes. Enter the full annual amount. The calculator applies your business-use %.
Parking and supplementary business insurance are often claimed in full when they are only for business. This calculator does not split those out. Capital cost allowance, the depreciation on a vehicle you own, is also separate. Do not type the price of the vehicle into the cost boxes.
Passenger-vehicle limits can cap interest, leasing costs and the amount you can depreciate. The notes under the calculator list the 2026 ceilings. This page does not apply the caps for you.
Logbook rules
For each business trip, write the date, where you went, why you went, and the kilometres. Also record the odometer at the start of the year and at the end. That is how you get total kilometres.
After a full base-year logbook, you can keep a sample logbook for at least three months in a later year if your business use stays within 10% of the base year. If the pattern changes by more than that, go back to a full-year log.
Personal trips stay in the total, but they are not business kilometres. Driving from home to a regular workplace is generally not business use. The CRA’s motor vehicle pages spell out the exceptions, so read those if your trips are mixed.
Questions
What is the CRA mileage rate for 2026?
The 2026 reasonable allowance is 73¢ per kilometre for the first 5,000 km and 67¢ per kilometre after that. In the Northwest Territories, Yukon and Nunavut the rates are 77¢ and 71¢.
Can self-employed people use the CRA per-km rate?
No. Self-employed people deduct actual vehicle costs multiplied by their business-use percentage on Form T2125. The per-kilometre rates are limits for tax-exempt allowances paid by employers.
How do I calculate business-use % of my vehicle?
Divide the kilometres you drove to earn business income by the total kilometres you drove in the year. For example, 830 ÷ 6,300 is 13.2%.
Is driving from home to work business use?
Only kilometres driven to earn business income count as business km. Personal driving does not. The CRA’s motor vehicle pages explain what counts, so check them for your situation.
What records do I need for a vehicle claim?
Keep a logbook with the date, destination, purpose and kilometres for each business trip, the odometer reading at the start and end of the year, and your receipts.
Is depreciation included?
No. If you own the vehicle, depreciation is claimed separately as capital cost allowance (CCA). This calculator does not work out CCA.