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Automobile Allowance Rates Set By CRA

 

These rates are considered reasonable allowances by CRA on a per kilometre basis to individuals who use personally owned vehicles for business purposes. An additional $0.04 per kilometre is allowed for travel in the Yukon, NWT, and Nunavut. The amount paid is a deduction from business income but can be considered a non-taxable receipt to the individual recipient. Click HERE for more discussion. The rate is standard for all vehicle types, regardless of their operating costs.

 

Click HERE for more discussion on Automobile Allowances.

 

Consider as well the published rates for the Treasury Board of Canada which are generally more favourable discussed HERE.

 

Tax Tip: use a vehicle with low operating costs for business travel. Often the reimbursement rate will exceed the operating and depreciation costs of these types of vehicles. The difference between the reimbursement rate and the actual operating cost rate is a non-taxable receipt to the individual and remains fully deductible to the business.

 

YEAR

FIRST 5,000 KM

ANYTHING OVER 5,000 KM

2001

$0.41 Per Kilometre

$0.35 Per Kilometre

2002

$0.41 Per Kilometre

$0.35 Per Kilometre

2003

$0.42 Per Kilometre

$0.36 Per Kilometre

2004

$0.42 Per Kilometre

$0.36 Per Kilometre

2005

$0.45 Per Kilometre

$0.39 Per Kilometre

2006

$0.50 Per Kilometre

$0.44 Per Kilometre

2007 $0.50 Per Kilometre $0.44 Per Kilometre
2008 $0.52 Per Kilometre $0.46 Per Kilometre
2009 $0.52 Per Kilometre $0.46 Per Kilometre
2010 $0.52 Per Kilometre $0.46 Per Kilometre
2011 $0.52 Per Kilometre $0.46 Per Kilometre
2012 $0.53 Per Kilometre $0.47 Per Kilometre

2013

$0.54 Per Kilometre $0.48 Per Kilometre

 

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Keith Anderson, BComm, CA-IT Copyright September 9, 1999 Last Modified :10/17/13 12:22 PM