abstractigakisCanada · tax year 2026
CRA mileage rates for 2026
These are the prescribed tax-exempt allowance ceilings Finance Canada announced for 2026. They are not a promise your employer will pay them, and they are not tax advice.
| Where the km were driven | First 5,000 km | Each km after that |
|---|---|---|
| Provinces | 73¢ | 67¢ |
| Yukon, NWT, Nunavut | 77¢ | 71¢ |
What people mix up
- 73¢ is the first 5,000 business kilometres in a province, not a flat rate for the whole year.
- A flat monthly car allowance is usually taxable. A per-kilometre amount at or under these rates is the one CRA generally treats as reasonable.
- You still need a log: date, kilometres, and why the trip was for work. The rate does not replace records.
Source: Finance Canada, 2026 automobile rates · CRA allowance table.