CRA automobile rates for 2026
| Rate | 2025 | 2026 |
|---|---|---|
| Tax-exempt allowance, first 5,000 km (provinces) | 72¢ | 73¢ |
| Each additional km (provinces) | 66¢ | 67¢ |
| Territories (Yukon, NWT, Nunavut) | 76¢ / 70¢ | 77¢ / 71¢ |
| Operating cost benefit (per personal km) | 34¢ | 34¢ |
| Operating cost benefit, car salespeople | 31¢ | 31¢ |
| CCA ceiling, passenger vehicles (Class 10.1) | $38,000 | $39,000 + tax |
| CCA ceiling, zero-emission vehicles (Class 54) | $61,000 | $61,000 + tax |
| Lease deduction limit / interest limit | $1,100 / $350 a month | $1,100 / $350 a month |
Rules by vehicle type
| Vehicle | Allowance rate | Company car benefit | Depreciation (CCA) |
|---|---|---|---|
| Gasoline / diesel car or SUV | 73¢ / 67¢ | Standby charge + 34¢/km | Class 10.1, cost capped at $39,000 + tax |
| Hybrid | 73¢ / 67¢ | Same | Class 10.1 (plug-in hybrids with a battery of 7 kWh+ can qualify as zero-emission, Class 54) |
| Electric | 73¢ / 67¢ | Same rates (no EV discount) | Class 54, cost capped at $61,000 + tax |
| Pickup seating the driver and up to 2 passengers, used more than 50% to haul goods or equipment | 73¢ / 67¢ | May not be an “automobile” — no standby charge; benefit is fair market value | Class 10 (no cap) |
How the company car benefit works
Standby charge: 2% of the car’s cost (including GST/HST and PST) for each month it is available to you, or ⅔ of the lease cost if leased. If you use the car more than 50% for business and drive fewer than 1,667 personal km a month, it is reduced in proportion to personal km. Operating cost benefit: if your employer pays operating costs, 34¢ for each personal km — or, if business use is over 50%, you can elect half of the standby charge instead.
Model data used
Presets use the first-listed 2026 version of each model in Natural Resources Canada’s 2026 Fuel Consumption Guide (combined L/100 km, regular gasoline). Real-world fuel use varies.
FAQ
What is the CRA mileage rate for 2026?
73 cents per km for the first 5,000 km and 67 cents per km after that. In Yukon, the Northwest Territories and Nunavut it is 77 cents and 71 cents.
How much tax-free allowance can I get for 10,000 km?
Up to $7,000 in the provinces: 5,000 km × 73¢ = $3,650 plus 5,000 km × 67¢ = $3,350.
What is the operating cost benefit rate for 2026?
34 cents per personal km (31 cents for employees principally employed selling or leasing cars), unchanged from 2025.
How is the standby charge calculated?
2% of the car’s cost for each month available. For a $45,000 car available all year it is $10,800; with 8,000 personal km out of 25,000 total it drops to about $4,319 (8,000 ÷ 20,004).
Sources (checked 5 November 2026): Department of Finance Canada, “Government announces the 2026 automobile deduction limits and expense benefit rates for businesses”, January 14, 2026 (canada.ca/en/department-finance/news/2026/01/…); CRA guide T4130, Employers’ Guide – Taxable Benefits and Allowances (standby charge and operating cost rules); Natural Resources Canada, 2026 Fuel Consumption Guide (combined ratings); Statistics Canada monthly average retail price of regular gasoline, Toronto, September 2026 (183.7¢/L, via ycharts).