CRA mileage rate 2026.
For 2026, the CRA reasonable per-kilometre rate is 73 cents per kilometre for the first 5,000 business kilometres driven in the year, and 67 cents for every kilometre after that. In the Northwest Territories, Yukon and Nunavut, add 4 cents to both.
CRA per-kilometre rates by year
| Tax year | First 5,000 km | After 5,000 km | Territories, first 5,000 | Territories, after |
|---|---|---|---|---|
| 2026current | 73 cents | 67 cents | 77 cents | 71 cents |
| 2025 | 72 cents | 66 cents | 76 cents | 70 cents |
| 2024 | 70 cents | 64 cents | 74 cents | 68 cents |
Calculate your allowance
This is the CRA reasonable per-kilometre allowance, the figure used for a tax-free allowance paid to an employee and the common benchmark for self-employed vehicle claims. If you deduct actual vehicle costs instead, your claim is the business-use share of real expenses, not this number. General guidance, not tax advice.
How the 5,000 kilometre tier works
The threshold is cumulative across the tax year, not per trip and not per vehicle. Your first 5,000 business kilometres in the year are worth the higher rate; everything past that is worth the lower one. The count starts again on 1 January.
So a year with 7,500 business kilometres in 2026 is not 7,500 at 73 cents. It is 5,000 at 73 cents plus 2,500 at 67 cents. The calculator above splits the tiers for you.
Is the mileage rate different in Ontario, Alberta or BC?
No. The rate is federal, so it is identical in every province. Searches for a provincial mileage rate are really searches for the national one. The only variation is the northern supplement: travel in the Northwest Territories, Yukon and Nunavut adds 4 cents per kilometre to both tiers.
You still need a logbook
The rate answers what a kilometre is worth. It does not prove you drove it. The CRA expects a record of each business trip showing the date, destination, purpose and distance, along with your total kilometres for the year, because a vehicle claim rests on the business-use share: business kilometres divided by total kilometres driven.
This is where most claims fall apart, and it is a record-keeping habit rather than a tax question. scan-ai has a mileage section where you log each trip with its date, distance and purpose, and it applies the current CRA per-kilometre rates for you. It does not detect drives automatically in the background the way a dedicated GPS mileage app does, so the trip still gets entered by hand.
General guidance, not tax advice. Rates change annually and the right method depends on your situation, so confirm the current figures with the CRA or your accountant before you file.
Keep going
- CRA business expense categories and the T2125 covers line 9281, where motor vehicle expenses land.
- GST/HST input tax credit finder for the sales tax on the fuel and repair receipts behind those kilometres.
- Freelancer deduction finder and scan-ai for Canadian filers.
CRA mileage, plainly.
What is the CRA mileage rate for 2026?
For 2026 the CRA reasonable per-kilometre rate is 73 cents for the first 5,000 business kilometres driven in the year and 67 cents for each kilometre after that. In the Northwest Territories, Yukon and Nunavut both figures rise by 4 cents, to 77 cents and 71 cents.
How does the 5,000 km tier work?
The threshold is cumulative across the whole tax year, not per trip. You apply the higher rate to your first 5,000 business kilometres in the year, then the lower rate to everything beyond that. The count resets at the start of each tax year.
Is the CRA mileage rate the same in every province?
Yes, apart from the territories. The rate is federal, so Ontario, Alberta, British Columbia and every other province use the same per-kilometre figures. Only the Northwest Territories, Yukon and Nunavut differ, adding 4 cents per kilometre.
Do I still need a logbook?
Yes. The CRA expects a record showing the date, destination, purpose and distance of each business trip, plus your total kilometres for the year, because your claim depends on the business-use share. The rate tells you what a kilometre is worth; the logbook proves the kilometres happened.
Can I claim the per-kilometre rate and my fuel receipts?
No, not for the same costs. Self-employed filers generally either deduct the business-use share of actual vehicle expenses (fuel, insurance, repairs, lease or capital cost allowance) or use a per-kilometre approach, and the reasonable allowance rate is primarily the benchmark for a tax-free allowance paid to an employee. Pick one method and keep the records that support it. Confirm which applies to your situation with the CRA or your accountant.
Is this tax advice?
No. These are the published rates and general guidance to help you estimate. Rates change annually and eligibility depends on your circumstances, so confirm the current figures and method with the CRA or your accountant before you file.
General guidance, not tax advice. Rates change annually; confirm with the CRA or your accountant.