CRA Mileage Rate 2026: $0.73/km

For 2026, the mileage allowance rate is $0.73 per kilometre for the first 5,000 kilometres driven in the year, then $0.67 per kilometre after that. In the northern territories, add $0.04 per kilometre. Enter your kilometres below to get the exact amount, tier by tier.

Enter your total business kilometres for the year — the calculation updates as you type.

First 5,000 km at $0.73
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Additional kilometres: 0 km at $0.67
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Total allowance
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Rates updated on July 28, 2026 · Source: Canada Revenue Agency

This tool is provided for information purposes only. The rate shown is the maximum an employer can pay before the allowance becomes taxable; your own tax situation may differ.

Frequently asked questions

What is the mileage rate for 2026?

The rate is $0.73 per kilometre for the first 5,000 kilometres driven in the year, then $0.67 per kilometre after that.

Why does the rate drop after 5,000 km?

The first-tier rate accounts for the fixed costs of running a vehicle (insurance, registration, depreciation). Once those are covered, the second tier only needs to cover variable costs: fuel, maintenance and wear. That is why it is lower.

Is the rate higher in the territories?

Yes. For travel in Yukon, the Northwest Territories and Nunavut, add $0.04 per kilometre. That supplement applies to both tiers, not just the first one.

What is the difference between an employer reimbursement and a deduction?

An employer can pay an allowance at this rate without it becoming taxable for the employee. A self-employed person receives no allowance: they deduct their actual vehicle costs in proportion to business use. The two situations use different mechanisms.

Do I have to keep a logbook?

Yes. If you are audited, you need to be able to justify every kilometre claimed: date, destination, purpose and distance. An odometer reading at the start and end of the year completes the record.

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