Automobile allowance rates
The Canada Revenue Agency (CRA) establishes the annual maximum automobile allowance rate for personal automobiles used for business purposes within corporations. But what does this entail? Essentially, corporate owners utilizing their vehicles for business activities in the corporation are eligible for an allowance based on the kilometres driven for the company.
To qualify for this allowance, individuals must diligently maintain a logbook detailing the kilometres driven for corporate (business) purposes. This documentation ensures adherence to CRA regulations, allowing for the calculation of a reimbursement allowance, with the rate capped at the specified maximum allowance rates.
CRA Vehicle (Automobile) Allowance Rates for 2024:
- 70¢ per kilometre for the first 5,000 kilometres driven
- 64¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
Example for Automobile Allowance Rate
In the year 2024, consider an employee in Alberta who utilizes their vehicle for corporate purposes covering a distance of 3,000 kilometres. In this scenario, the corporation has the flexibility to provide a maximum allowance of $2,040, calculated as 3,000 km multiplied by the rate of $0.68 per kilometre.
Now, let’s take another employee facing a similar situation but covering 7,000 kilometres for the corporation. The maximum allowance for using the vehicle for corporate purposes is determined by the following calculation:
(5,000 km * $0.68) + (2,000 km * $0.64) = $3,400 + $1,280 = $4,680. Hence, in this case, the employee can receive a maximum allowance of $4,680.
And if it was on the Northwest Territories, Yukon, and Nunavut, the total amount would be: (4 cents more than the normal rate)
$4,680 + $0.04 * 7,000 = $4,680 + $280 = $4,960.
Here are the CRA Automobile Allowance Rates for other years:
CRA Vehicle (Automobile) Allowance Rates for 2023
- 68¢ per kilometre for the first 5,000 kilometres driven
- 62¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
CRA Vehicle (Automobile) Allowance Rates for 2022
- 61¢ per kilometre for the first 5,000 kilometres driven
- 55¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
CRA Vehicle (Automobile) Allowance Rates for 2021
- 59¢ per kilometre for the first 5,000 kilometres driven
- 53¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
CRA Vehicle (Automobile) Allowance Rates for 2020
- 59¢ per kilometre for the first 5,000 kilometres driven
- 53¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
CRA Vehicle (Automobile) Allowance Rates for 2019
- 58¢ per kilometre for the first 5,000 kilometres driven
- 52¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
CRA Vehicle (Automobile) Allowance Rates for 2018
- 55¢ per kilometre for the first 5,000 kilometres driven
- 49¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
CRA Vehicle (Automobile) Allowance Rates for 2016 and 2017
- 54¢ per kilometre for the first 5,000 kilometres driven
- 48¢ per kilometre driven after that<
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
CRA Vehicle (Automobile) Allowance Rates for 2015
- 55¢ per kilometre for the first 5,000 kilometres driven
- 49¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
For CRA page rates please check this link.
At Abraham Accounting we provide tax filing services for personal and corporates in Canada.
