Vehicle allowance calculator
Mileage allowance calculator
Enter the kilometres driven for work in the year. The result is the largest per kilometre allowance a business can deduct while it stays tax free for the employee.
Prepared by HBT Accounting, a CPA led firm in CalgaryUpdated 5.0 on Google, 59 reviews
2026 figures
Trips between home and the usual workplace are personal and do not count.
Leave at zero when the employee drives their own car.
Allowance, 2026
Paid at these rates or less, and based only on distance, the allowance is not income for the employee and is deductible for the business.
What this does not cover. Applies to allowances based only on kilometres driven for work. A flat allowance is generally taxable, the standby charge on a company car is not included, and the rates are the CRA's deduction limits rather than an amount anyone has to pay. This is an estimate for planning, not advice for your situation and not a filing.
What is the CRA mileage rate for 2026?
73¢ a kilometre for the first 5,000 kilometres driven for work and 67¢ for each kilometre after that, or 77¢ and 71¢ in the Northwest Territories, Nunavut and Yukon. A reasonable allowance at or below these rates, based only on distance, is not taxable for the employee.
Official sources
If these figures raise a question about your own return, call or ask for a call back. The first conversation is free and carries no obligation.