CRA Kilometre Rate: Per-KM Allowance in Canada 2023
The CRA Kilometre Rate is the standard mileage rate published by Canada Revenue Agency (CRA) for the purpose of calculating the deductible costs of operating a vehicle for business purposes.
The CRA standard mileage rate is higher in the territories compared to the provinces. This is due to the higher costs of living and operating a vehicle in these remote regions. The higher rates are meant to reflect the increased expenses associated with traveling in the territories, such as longer distances, harsh weather conditions, and higher fuel costs.
In 2023 the standard business kilomtere rate is 68¢ per kilometre for the first 5,000 kilometres driven and 62¢ per kilometre driven after that. In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
Our mileage tracking app Psngr bundles the kilometre rates in Canada and will calculate the correct reimbursement amount based on the annual mileage logged with the app.
CRA kilometre rates, in CAD cents per mile:
| Year | Provinces | Territories | ||
|---|---|---|---|---|
| 0-5000km | > 5000km | 0-5000km | > 5000km | |
| 2023 | 68 | 62 | 72 | 66 |
| 2022 | 61 | 55 | 65 | 59 |
| 2021 | 59 | 53 | 63 | 57 |
| 2020 | 59 | 53 | 63 | 57 |
| 2019 | 58 | 52 | 62 | 56 |
Updates:
- 2023-01-01 - CRA increases the automobile allowance rates kilometre for business by 7 cents per kilometre to $0.68 CAD.