Free tools / CRA mileage rate 2026
CRA mileage rate 2026
For 2026 the CRA per-kilometre rate is 73¢ for the first 5,000 km and 67¢ for every km after that (77¢ and 71¢ in the territories). So 8,000 business km comes to 5,000 x 0.73 + 3,000 x 0.67 = 5,660.00.
Those rates are the limits for tax-free allowances an employer pays an employee for driving their own vehicle. If you are self-employed, CRA works out the business share of your real vehicle costs instead; rows 11 to 15 below do that sum.
5,660.00 2026 limit
business use
for 8,000 business km of 20,000.
Outlined cells: what B10 is worked out from.
| A | B | |
|---|---|---|
| 1 | Your kilometres for 2026: type in the yellow cells | |
| 2 | ||
| 3 | ||
| 4 | The 2026 rates, line by line | |
| 5 | Km at 73¢ (the first 5,000) | 5,000 |
| 6 | At 73¢ | 3,650.00 |
| 7 | Km at 67¢ (after 5,000) | 3,000 |
| 8 | At 67¢ | 2,010.00 |
| 9 | Territory top-up, 4¢ a km | 0.00 |
| 10 | Limit for 2026 | 5,660.00 |
| 11 | Self-employed: your business-use share | |
| 12 | ||
| 13 | ||
| 14 | Business use | 40.00% |
| 15 | Business part of the costs | 3,760.00 |
With scripts off, this is a worked example. With scripts on, it updates as you type. Nothing you type is sent or saved.
Not tax advice. CRA's rules and your own records decide what you can claim or be paid; this page only does the arithmetic.
Worked examples at the 2026 rates
The first 5,000 km in the year are at the higher rate; every km after that is at the lower one. Each line is rounded to the cent.
| Driven in | Business km | First 5,000 km | After 5,000 km | Limit |
|---|---|---|---|---|
| A province | 3,000 | 3,000 km x 73¢ = 2,190.00 | 0 km x 67¢ = 0.00 | 2,190.00 |
| A province | 8,000 | 5,000 km x 73¢ = 3,650.00 | 3,000 km x 67¢ = 2,010.00 | 5,660.00 |
| A province | 15,000 | 5,000 km x 73¢ = 3,650.00 | 10,000 km x 67¢ = 6,700.00 | 10,350.00 |
| Yukon, NWT or Nunavut | 8,000 | 5,000 km x 77¢ = 3,850.00 | 3,000 km x 71¢ = 2,130.00 | 5,980.00 |
Business-use share, CRA's own example: Murray drove his truck 27,000 km for business out of 30,000 km, and the truck cost 7,000.00 to run. 27,000 / 30,000 = 90.00%, and 90.00% of 7,000.00 is 6,300.00. This sheet's B14 and B15 do the same sum.
What CRA says a vehicle logbook shows
From CRA's motor vehicle expenses page. For each business trip:
| Date | Destination | Purpose | Km |
|---|---|---|---|
| 14 Jan 2026 | Client site, Red Deer | Measure for a kitchen install | 152 |
The row is made up, to show the shape.
- The odometer reading of each vehicle at the start and end of the fiscal period, so the total kilometres are known.
- If you change vehicles during the period: the dates of the change and the odometer reading when you buy, sell or trade.
- More than one vehicle: a separate record for each, with its total and business kilometres.
The simplified (sample) logbook
CRA lets you keep a full logbook for one complete year as a base year. After that, a three-month sample logbook can stand in for the year, as long as the use stays within 10% of the base year. The sum: (sample period % / base year same period %) x base year annual %.
CRA's example: the base year logbook showed 49% business use for the year, and 46% for April to June. The next year, a sample logbook for April to June showed 51%. (51% / 46%) x 49% = 54%, which is inside the 39% to 59% range, so CRA would accept 54% unless other evidence says otherwise. CRA also says the full base-year logbook must be kept for six years from the end of the last tax year it is used for.
Keep the log in a spreadsheet
The Expense & Mileage Log keeps every trip, adds up the distance per vehicle and sorts a bank CSV into your own categories. You type your own rate; none is built in.
Expense & Mileage Log: US$7.99, one time. One .xlsx file for Excel and Google Sheets.
See it on EtsyOr all six money sheets in one download, this one included: Money Spreadsheets 6-Pack, US$24.99 (US$37.94 bought one by one).
Questions people search for
- What is the CRA mileage rate for 2026?
- 73¢ a km for the first 5,000 km and 67¢ for each km after that, in the provinces. In the territories: 77¢ and 71¢. These are the 2026 limits on tax-exempt per-km allowances an employer pays an employee for using their own vehicle (Department of Finance Canada, 14 Jan 2026).
- Is the CRA mileage rate 2026 different in Alberta?
- No. Alberta is a province, so 73¢ and 67¢. Only kilometres in the territories get the higher 77¢ and 71¢.
- What was the CRA mileage rate in 2025?
- 72¢ for the first 5,000 km and 66¢ after, or 76¢ and 70¢ in the territories (CRA's automobile allowance page, which lists both years).
- Does the first 5,000 km start again each year?
- Section 7306 of the Income Tax Regulations counts the kilometres driven in the year, so the 5,000 km tier is per year.
- I am self-employed. Do I claim 73¢ a km?
- The 73¢ and 67¢ figures are the limits for allowances employers pay employees. CRA's self-employed example works out the business share of the vehicle's actual costs instead: business km / total km x costs. Rows 11 to 15 above do that sum. Ask a tax professional which applies to you.
- What are the CRA mileage log requirements?
- For each business trip: the date, destination, purpose and kilometres. Plus each vehicle's odometer reading at the start and end of the fiscal period. See the section above.
- What is the CRA simplified logbook?
- One full year of logbook as a base year, then a three-month sample in later years, as long as the result stays within 10% of the base year. The worked example is above.
- Is there a CRA mileage log template for Excel?
- Our Expense & Mileage Log has a Mileage sheet with the date, destination, purpose, distance and vehicle for each trip, and a Vehicles sheet for odometer readings and the share of trips in total distance. It does not build in a rate and does not say a log meets CRA's rules.
Sources
- Department of Finance Canada: Government announces the 2026 automobile deduction limits and expense benefit rates for businesses. News release, 14 Jan 2026. The 73¢ / 67¢ and 77¢ / 71¢ limits for 2026.
- Canada Revenue Agency: Automobile and motor vehicle allowances. Page dated 6 Mar 2026. The per-km rates for 2026 and 2025, and when an allowance is reasonable.
- Canada Revenue Agency: Motor vehicle expenses. Page dated 17 Aug 2026. What a logbook shows, the sample logbook rule and both worked examples used here.
- Income Tax Regulations, section 7306. Current to 19 Oct 2026. How the rate is built: the first 5,000 km in the year, and 4¢ more for km in Yukon, the Northwest Territories or Nunavut. The consolidated text there still shows the 2025 amounts; the 2026 figures on this page are from Finance Canada and CRA.
Last updated 10 Nov 2026. Each source above was read on 10 Nov 2026.