Canada Revenue Agency (CRA) Approved Mileage Rate

For personally-owned vehicles that are used for business purposes (either in your proprietorship, partnership, or company) we often claim the CRA-approved mileage rate rather than claiming a portion of your vehicle gas, repairs, insurance, and registration. 

To claim mileage on your taxes you must keep a log of the kilometers that you drove for business purposes. The limit on the deduction for non-taxable allowances paid by an employer to an employee using a personal vehicle for business purposes will increase in 2025 by 2 cents to 72 cents per KM for the first 5,000 KM driven and to 66 cents for each additional KM. For Yukon, the Northwest Territories, and Nunavut, the tax-exempt allowance will continue to be 4 cents per KM higher, which is 76 cents for the first 5,000 KM driven and 70 cents for each additional KM.

The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers will increase by one cent to 34 cents per KM. For taxpayers employed principally in selling or leasing automobiles, the rate will increase to 31 cents per KM.

These rates are up from $.70 per KM for the first 5,000 KM and $.64 per KM for 5001 and more KM in 2024.