Status (December 2025): The Canada Revenue Agency has not yet released the official 2026 prescribed automobile allowance (often called the CRA mileage rate). Any 2026 figures in this guide are planning estimates only and will be updated when the CRA publishes the final 2026 rates.
Quick answer: 2026 CRA mileage rate
The official CRA 2026 mileage rate will be announced in December 2025. Based on recent trends, the per-kilometre rate is expected to be $0.74 per kilometre for the first 5,000 business kilometres, and $0.68 per kilometre for any additional kilometres.
For budgeting and planning only, this guide uses the following working estimates, based on recent rate patterns:
- Estimated 2026 rate for the first 5,000 business kilometres in the provinces: $0.74 per kilometre
- Estimated 2026 rate for additional business kilometres above 5,000 in the provinces: $0.68 per kilometre
These estimates are meant to give you an order-of-magnitude sense of potential reimbursement and deduction amounts.
Calculate Your 2026 Deduction → — enter your estimated business kilometres and see an indicative 2026 mileage amount based on the planning rates above.
On this page
- Quick answer: 2026 CRA mileage rate
- What is the CRA mileage rate?
- Example using the 2026 estimated rate
- 2026 CRA mileage rate: what to expect
- How to calculate reimbursements using CRA km rates
- What counts as business kilometres?
- How employees use the mileage rate
- How self-employed Canadians use CRA km rates
- Practical tips for 2026
- CRA mileage log requirements and template
- FAQ: 2026 CRA mileage rate
What is the CRA mileage rate for 2026?
Each year, the CRA publishes prescribed per-kilometre amounts that are used as a reasonable allowance for business use of a personal vehicle. Many people refer to these amounts as the CRA mileage rate.
These rates are typically used when:
- Employers pay a per-kilometre allowance to employees who use their own vehicle for work travel
- Self-employed individuals and small business owners work out the value of business kilometres driven
Instead of tracking every fuel, maintenance, insurance and depreciation receipt, some taxpayers rely on the per-kilometre allowance as a simplified way to value each business kilometre. This approach is only acceptable if you keep a detailed, timely mileage log that can be produced if the CRA asks questions.
When will the CRA announce the 2026 mileage rate?
The CRA normally publishes the prescribed automobile allowance rates for the upcoming year in late December. Based on recent timing, the official 2026 mileage rates are expected to be confirmed in the second half of December 2025, with the new amounts taking effect on January 1, 2026.
- Expected announcement: late December 2025
- Effective date: January 1, 2026
- Where published: Government of Canada / CRA news releases and guidance pages for automobile allowance rates, for example the Appendix A: CRA kilometric rates
- Who it affects: employees receiving per-kilometre vehicle allowances, self-employed individuals, small business owners and other taxpayers relying on CRA mileage rates for 2026
2026 CRA mileage rate: what to expect
The 2026 CRA mileage rate has not yet been published. However, the same factors that shaped recent rate changes are likely to influence 2026 as well.
The CRA typically looks at:
- Average fuel prices across Canada
- Maintenance and repair costs
- Insurance premiums and registration fees
- Inflation and other changes in the total cost of owning and operating a vehicle
In recent years, per-kilometre allowances have generally moved upward when vehicle costs have risen. It is reasonable to expect the 2026 rates to follow the same broad direction, but the exact cents-per-kilometre amounts will only be known once the CRA issues its formal 2026 guidance.
5-year CRA mileage rate history (2021–2025)
For context, the table below shows the official CRA prescribed automobile allowance rates for the provinces over the last five years:
| Year | First 5,000 km (provinces) | Additional km (provinces) |
|---|---|---|
| 2025 | $0.72 per km | $0.66 per km |
| 2024 | $0.70 per km | $0.64 per km |
| 2023 | $0.68 per km | $0.62 per km |
| 2022 | $0.61 per km | $0.55 per km |
| 2021 | $0.59 per km | $0.53 per km |
For travel in the territories (Yukon, Northwest Territories and Nunavut), the CRA has generally added an extra $0.04 per kilometre to these provincial rates over the same period.
Until then, the official 2025 mileage rate is the best benchmark for planning. You can model 2026 scenarios by applying small increases to the 2025 figures, while clearly marking these as estimates in your budgets and forecasts.
How to calculate reimbursements using CRA km rates
Whether you are an employee receiving a per-kilometre allowance or a self-employed person working out vehicle expenses, the basic calculation using CRA km rates follows the same pattern:
- Record each business trip in kilometres.
- Add up your total business kilometres for the year.
- Apply $0.74 per kilometre to the first 5,000 business kilometres.
- Apply $0.68 per kilometre to business kilometres in excess of 5,000.
- Add any applicable supplement for travel in the territories.
Example: self-employed consultant in Ontario
A consultant based in Ontario drives 12,000 business kilometres in the year and applies the estimated 2026 CRA mileage rates to those kilometres. The mileage amount would be calculated along these lines:
- First 5,000 km × $0.74 = $3,700
- Next 7,000 km × $0.68 = $4,760
In this example, the total estimated mileage amount for the year would be $8,460, based on the planning rates above. The key point is that this calculation only works if the 12,000 business kilometres are supported by a clear, contemporaneous mileage log.
What counts as business kilometres?
For CRA purposes, only business kilometres are relevant when applying the mileage rate or working out the business-use percentage of a vehicle. Personal driving is not deductible.
Typical examples of business kilometres include:
- Travel from a regular workplace to a client’s office or job site
- Travel between multiple client locations in the same day
- Trips to suppliers, equipment depots, or delivery points for business reasons
- Travel to networking events, trade shows, or industry conferences related to your work
Routine commuting from home to a primary workplace is generally personal, even if you take calls or answer emails on the way. The rules can be nuanced for people who work from home or have more than one regular workplace, so it is sensible to review CRA guidance or speak with a tax advisor if a trip seems borderline.
How employees use the CRA mileage rate
Employees who use their own vehicle for work often receive a per-kilometre allowance from their employer. If that allowance is based on a reasonable rate and the employee pays their own vehicle expenses, the allowance may be non-taxable.
Many employers benchmark their allowance against the CRA mileage rate for the year. To stay aligned with CRA expectations, employees should generally:
- Record each work-related trip with the date, destination, purpose and kilometres driven
- Submit mileage records on a regular schedule so payments are tied to actual business use
- Keep a clear separation between personal and business kilometres in case records are reviewed
Using an app such as DriveLog helps keep these records up to date throughout the year, rather than trying to rebuild missing trips at tax time.
How self-employed Canadians use CRA km rates
Self-employed individuals, freelancers and owners of small corporations generally have two main ways to deal with vehicle costs for tax purposes:
- Claiming actual vehicle expenses in detail and applying a business-use percentage
- Using the CRA per-kilometre allowance as a simplified way to value each business kilometre, or as a benchmark for reasonableness
In both cases, the CRA expects the number of business kilometres to be backed by a consistent, verifiable log. Guidance repeatedly stresses the importance of recording start and end odometer readings, dates and trip purposes.
Whatever the final 2026 mileage rate turns out to be, maintaining clear documentation will remain essential. A well-organized mileage log supports the deduction in the event of a CRA review and makes year-end work easier for both the taxpayer and their accountant.
Practical tips for the 2026 CRA km rate
The following steps can help you prepare for the 2026 CRA mileage rate and keep accurate records all year:
- On January 1, record your vehicle’s odometer reading to establish a clear starting point for the year.
- Log trips promptly. Recording a trip right after it happens is more reliable than trying to remember a week’s worth of driving.
- Write down the business purpose for each trip. A short note such as “client meeting – downtown office” is usually enough.
- Save supporting documents, including digital receipts and calendar entries, especially for longer or higher-value trips.
- When the CRA releases the 2026 rates, update your spreadsheets, accounting software or internal policies to reflect the new amounts.
For advice on your specific situation, consult a Canadian tax professional or review official CRA publications.
CRA mileage log requirements and template
Regardless of the final form of the 2026 CRA mileage rate, you still need to meet the CRA’s mileage log requirements to support any deduction or reimbursement. The CRA expects your records to separate business and personal use and to document the key details of each business trip.
In practice, a basic mileage log or spreadsheet should record:
- Date of the trip
- Starting location and destination
- Business purpose of the trip
- Odometer reading at the start and end of the trip
- Total business kilometres driven
These elements can be used to create a simple CRA-style mileage log template in Excel, Google Sheets or another tool you prefer, and then updated throughout the year.
The practical difficulty is maintaining the habit of recording every business trip. A mileage log app that aligns with CRA record-keeping expectations, such as DriveLog, lets you track business kilometres on your phone instead of relying on paper logbooks or manual spreadsheets.
If you also need information about the United States standard mileage rate, a dedicated guide to the 2026 IRS mileage rate provides the corresponding IRS perspective on mileage deductions.
FAQ: 2026 CRA mileage rate
Expected announcement for the 2026 CRA mileage rate
At the time of writing (December 2025), the CRA has not yet released the official 2026 per-kilometre rates. Based on recent patterns, the announcement is expected in the second half of December 2025, with the new rates taking effect on January 1, 2026. You should always confirm the latest figures directly from CRA guidance before relying on any specific amount.
Predicted 2026 CRA mileage rate
This guide uses planning estimates only. For 2026, the working assumption is $0.74 per kilometre for the first 5,000 business kilometres in the provinces and $0.68 per kilometre for additional kilometres, based on recent CRA patterns. These are not official CRA numbers and should be updated as soon as the CRA publishes the confirmed 2026 rates.
Do I have to use the CRA mileage rate, or can I claim actual expenses?
You are not required to use the per-kilometre allowance. Many Canadians do so because it is straightforward and widely accepted when applied correctly. In some situations, especially if your vehicle costs are unusually high, claiming actual expenses may give a different result. The better approach depends on your circumstances, so consider speaking with a tax professional before changing methods.
Do I need to keep paper records?
No. The CRA accepts electronic mileage records as long as they capture the same information as a paper log, such as dates, destinations, kilometres and the business purpose of each trip. Using an app like DriveLog lets you keep organised digital records on your phone instead of relying on a paper notebook.
