CRA Automobile Allowance & Mileage Calculator
Calculate CRA non-taxable reasonable automobile allowance reimbursement rates (70¢/km first 5,000 km, 64¢ thereafter) and logbook totals.
Calculate CRA non-taxable reasonable automobile allowance reimbursement rates (70¢/km first 5,000 km, 64¢ thereafter) and logbook totals.
Calculate CRA non-taxable reasonable automobile allowance reimbursement rates (70¢/km first 5,000 km, 64¢ thereafter) and logbook totals. Calculate exact, penny-accurate projections compliant with 2026 CRA • Bank of Canada standards using Calconova's deterministic IEEE-754 (Decimal.js) calculation engine with instant breakdowns.
First 5,000 km tier: 5,000 km @ $0.70/km
CRA statutory benchmark is $0.70 / $0.64.
$5,740.00
Effective average: $0.675 / km across 8,500 business km
First 5,000 km Tier
$3,500.00
5,000 km @ $0.70/km
Excess Distance Tier
$2,240.00
3,500 km @ $0.64/km
Employer Payout Comparison:
• Employer Total Paid: $5,950.00
⚠️ Employer pays $210.00 above the CRA prescribed rate. This excess is taxable as a taxable benefit!
Tax-Free Allowance = min(Km, 5,000) × $0.70 + max(0, Km - 5,000) × $0.64 (+ $0.04/km in Territories)Under section 7306 of the Income Tax Regulations, per-kilometre reimbursements that do not exceed the statutory ceiling are non-taxable to the employee and 100% deductible as an operational business expense for the employer.
All calculations, amortizations, and scenario projections displayed on this page are strictly for informational and educational purposes. Nothing herein constitutes investment, financial, tax, or legal advice. Actual CRA tax brackets, provincial taxes, Bank of Canada rates, and lender criteria may vary. Calconova explicitly disclaims all liability for any decisions taken based upon these calculations. Consult a qualified financial advisor or CPA prior to executing financial commitments.
For 2024/2025, the CRA prescribed reasonable per-kilometre rate is 70¢ per kilometre for the first 5,000 kilometres driven for business, and 64¢ per kilometre for each additional kilometre. In the Northwest Territories, Yukon, and Nunavut, the rates are 4¢ higher (74¢ and 68¢).
No. If your employer reimburses you at or below the CRA prescribed per-kilometre rate based on actual business kilometres logged, the payment is considered a 'reasonable allowance' and is 100% tax-free. It does not appear on your T4 tax slip.
To satisfy CRA audit standards, you must keep a contemporaneous motor vehicle logbook recording: the date of each business trip, destination, business purpose, and odometer readings (start and end kilometres).
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