Guide
CRA Mileage Rate 2026: 73¢/km — Full Rates & Logbook Guide
General information, not tax advice. Always check the current rules on canada.ca before claiming.
For 2026, the CRA's reasonable automobile allowance rate is 73 cents per kilometre for the first 5,000 km driven for business, and 67 cents per kilometre after that — a one-cent increase across the board compared to 2025. In the Northwest Territories, Yukon and Nunavut, add 4¢/km to both tiers.
The 2026 rates at a glance
| Region | First 5,000 km | Above 5,000 km | 2025 (for reference) |
|---|---|---|---|
| Provinces | 73¢ / km | 67¢ / km | 72¢ / 66¢ |
| NWT, Yukon, Nunavut | 77¢ / km | 71¢ / km | 76¢ / 70¢ |
A worked example
You drove 8,000 business kilometres in 2026 (provinces):
(5,000 × $0.73) + (3,000 × $0.67) = $3,650 + $2,010 = $5,660 in tax-free allowance.
Work out your allowance
Enter your work kilometres and pick your region.
That figure holds only if you can show the kilometres behind it: the CRA expects a dated log, trip by trip. Build one from your Google Timeline — it is read in your browser, and your location history never leaves your computer.
Who these rates apply to
- Employees: your employer can pay you a per-kilometre allowance tax-free as long as it's "reasonable" — these CRA rates are the benchmark. A flat monthly car allowance, by contrast, is taxable.
- Self-employed: you deduct actual vehicle expenses prorated by business use — and that proration is computed from your kilometre log, which makes the log itself the foundation of the deduction.
The CRA logbook: what it must contain
Whether you're justifying an allowance or prorating expenses, the CRA expects a logbook recording, for each business trip: the date, destination, purpose, and distance driven — plus odometer readings at the start and end of the year. And because the rate drops after 5,000 km, the running total matters, not just the annual sum.
If you use Google Maps, your phone has already recorded every drive in your Timeline, with GPS timestamps and distances. Turning that into a CRA-ready log:
- Export your Timeline from your phone (see our Timeline export guide).
- Open the file in Time-mile — processed entirely in your browser, your location history never touches a server.
- Filter to your business trips by date and activity type; the distance column gives you per-trip kilometres.
- Export a CSV to track the 5,000 km threshold in a spreadsheet, or a PDF report for your records.
Build your CRA logbook from real GPS data
Import your Google Timeline once, export a clean, dated log in minutes.
Launch Time-mileOfficial sources
Frequently asked questions
What is the CRA mileage rate for 2026?
For 2026, the CRA's reasonable automobile allowance rate is 73 cents per kilometre for the first 5,000 km driven for business, and 67 cents per kilometre after that. That is a one-cent increase across the board compared to 2025.
Does the CRA mileage rate change after 5,000 km?
Yes. The rate drops from 73 cents per kilometre for the first 5,000 business kilometres to 67 cents per kilometre for every kilometre after that, so your running total matters, not just the annual sum.
What is the CRA mileage rate in the Northwest Territories, Yukon and Nunavut?
In the Northwest Territories, Yukon and Nunavut you add 4 cents per kilometre to both tiers, which makes the 2026 rate 77 cents per kilometre for the first 5,000 km and 71 cents per kilometre above that.
What does a CRA mileage logbook need to include?
For each business trip the CRA expects the date, destination, purpose and distance driven, plus odometer readings at the start and end of the year. Because the rate drops after 5,000 km, the running total also needs to be clear.
Can I use my Google Timeline as a CRA mileage log?
Yes. If you use Google Maps, your phone has already recorded every drive in your Timeline with GPS timestamps and distances. You can export that Timeline, open it in Time-mile entirely in your browser, filter to your business trips, and export a CSV or PDF log.