Tool, rates checked August 23, 2026
CRA mileage calculator
Kilometres in, allowance out, with the two CRA tiers shown. The rates come from the same dated table the CRA rate page and the Odie app use. For miles, use the IRS calculator.
The rates the calculator uses
| Year | First 5,000 km | After 5,000 km | Yukon, NWT, Nunavut |
|---|---|---|---|
| 2026 | 73¢ | 67¢ | +4¢ |
| 2025 | 72¢ | 66¢ | +4¢ |
| 2024 | 70¢ | 64¢ | +4¢ |
Sources: Automobile and motor vehicle allowances, canada.ca. The figures for each year come from the Finance Canada release linked in the Year column.
What the number is
For 2026, the CRA treats 73 cents per kilometre for the first 5,000 business kilometres and 67 cents after that as a reasonable allowance: an employer can pay you that much for driving your own car without the payment being a taxable benefit, and the employer may deduct it. Add 4 cents to both tiers in Yukon, the Northwest Territories and Nunavut. The figures come from the CRA’s automobile allowance rates page and are set by the Department of Finance each December or January.
What the number is not
It is not a deduction. The self-employed deduct the business-use share of actual costs (fuel, insurance, maintenance, lease or depreciation, interest) worked out from business kilometres over total kilometres, on form T2125. An employee who is paid a reasonable allowance normally cannot deduct vehicle costs on top. Home to a regular workplace is personal driving in both cases. The two Canadian regimes post walks through both with one example.
Keeping the kilometres defensible
Whatever the rate, the figure is only as good as the log behind it. The CRA asks for the date, destination, purpose and distance of each business trip, and odometer readings at the start and end of the year. Odie records that in the background and produces the report; if you keep it by hand, start from the mileage log template and read what the CRA wants in a logbook.
Estimates for record keeping, not tax advice. Your accountant knows your situation.
Questions
Is the result my tax deduction?
No. Kilometres times the CRA rate is the allowance an employer can pay you tax-free. If you are self-employed you deduct the business-use share of your actual vehicle costs on form T2125, and this number is not that. If you are an employee with a signed T2200 who is not paid an allowance, you also deduct actual costs (line 22900).
Why two rates?
Income Tax Regulations s. 7306 sets a higher amount for the first 5,000 kilometres in the year and a lower one after that. The 5,000 km counter is per person per year, across all the cars you drive, so a second car does not restart it.
Does the calculator apply the rate of the year I pick to every kilometre?
Yes. It prices the whole distance at the tiers of the selected year. If your driving spans two years, run it once per year with that year’s kilometres. The Odie app does this by itself, pricing each trip at the rate in force on its date.
What about Québec?
Revenu Québec accepts the same per-kilometre figures for a reasonable allowance. The logbook rules differ in one respect for cars an employer provides; see the Canada page.
Does anything I type leave this page?
No. The arithmetic runs in your browser. This site sets no cookies and loads no analytics.
Your next work trip can log itself.
Odie is in the final stretch before launch. Leave your email on the support page and you will hear when it ships, nothing else.