Canada · CRA

Mileage tracking for Canadian drivers.

The CRA's per-kilometre rates are tiered: the first 5,000 business kilometres get a higher rate than every kilometre after. Drivers in Northwest Territories, Yukon, and Nunavut get an additional four cents per kilometre on top. Most mileage trackers ignore both rules and underdeduct.

TruMile is built around the actual CRA mechanics: tiered rates, territory bonuses, T2125 self-employed reporting, and T777 employee claims. The pages below cover the current rate, the history, how to claim with the right form, and what records the CRA expects you to keep.

Rate at a glance

Unit: kilometres · Currency: CAD · Tax year start: 1/1 · Authority: CRA

CRA tiered rate: tier 1 applies to the first 5,000 km of business driving per year per car; tier 2 applies to all subsequent km. Northern territories (NT, YT, NU) get an additional 4 cents per km on top of the base tier rate. Per CRA T2200 guidance, employees claiming on T777 must have their mileage agreed by the employer; self-employed file on T2125. NOTE: territory adjustment is accurate to published CRA rates but is NOT applied in MileageRateService.swift as of 2026-05-04 (DELTA flagged to T2A).

All Canada pages

CRA Mileage Rate 2026: 73¢/km First Tier, 67¢/km After

The Canada Revenue Agency's reasonable per-kilometre rate for 2026 is $0.73 per kilometre for the first 5,000 business kilometres of the year and $0.67 per kilometre for every kilometre after that. Drivers in the Northwest Territories, Yukon, and Nunavut get an additional $0.04 per kilometre on top of both tiers.

CRA Per-Kilometre Rate History

The CRA reviews its reasonable per-kilometre rate annually and announces changes for the upcoming year in late autumn. The rate has trended up every year since 2023 in response to vehicle and fuel cost inflation.

Free CRA Kilometre Calculator (2026)

Enter your business kilometres for the year. The calculator applies the CRA tier ($0.73/km up to 5,000 km, $0.67/km after) and adds the $0.04 territory bonus if you select NT, YT, or NU.

How to Claim Mileage on Your CRA Return

How you claim depends on whether you are self-employed or an employee. Self-employed Canadians use form T2125 and report on their personal T1 return. Employees use form T777 and need a signed T2200 from the employer.

CRA Mileage Log Requirements

The CRA expects a contemporaneous log: a record made at or near the time of the trip, not reconstructed from memory at year-end. Each entry needs four facts plus year-end odometer readings.

CRA Mileage Deduction for Canadian Food Delivery Drivers

Canadian food delivery drivers working for platforms such as SkipTheDishes, DoorDash, Uber Eats, and Instacart are classified as self-employed independent contractors by the Canada Revenue Agency. That classification means you file business income on form T2125 and can deduct business kilometres at the CRA's current reasonable per-kilometre rate.

Track your business mileage automatically.

TruMile supports CRA rates with the right tier, cap, and unit logic. Free for 40 auto trips a month.

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