Free tools › Canada mileage allowance calculator

Canada tax-free mileage allowance calculator for 2026

Choose where the driving is and enter the business kilometres. See the most your employer can pay you as a tax-free allowance.

Who this is for. These are the most an employer can pay an employee per kilometre as a tax-free allowance in 2026. They are not a deduction rate for self-employed couriers, who work out vehicle expenses a different way. This is an estimate, not tax advice. Check the Government of Canada's guidance or ask an accountant.

How it is calculated

Most tax-free allowance = (first 5,000 km x 73 cents) + (km over 5,000 x 67 cents). In the territories: 77 and 71 cents.

The rates come from the Department of Finance Canada announcement of 14 January 2026. Always check the Government of Canada for the latest figures.

Common questions

What is the 2026 CRA mileage rate?

The Department of Finance Canada announced on 14 January 2026 that the limit on tax-exempt allowances paid by employers is 73 cents per km for the first 5,000 km and 67 cents per km after that, with 4 cents more in Yukon, the Northwest Territories and Nunavut.

Can a self-employed courier claim 73 cents per km?

Not automatically. The rate is the most an employer can pay as a tax-free allowance. Self-employed people work out vehicle expenses a different way, so ask an accountant.

How is 6,000 km worked out?

5,000 km x 73 cents = $3,650, plus 1,000 km x 67 cents = $670, so $4,320 in total.

Is my information saved?

No. The sums run in your browser and nothing you enter is sent to us.

More free tools

IRS mileage calculator (US)HMRC mileage calculator (UK)

Guides that go with this

Plan your routes in the free app

MiliRoute puts your stops in the quickest order, and it is free for routes of up to 10 stops. Save routes, capture proof of delivery and see your own analytics.

Create a free accountDownload for Android