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.
Year-over-year rates
2026: $0.73/km for the first 5,000 km, $0.67/km after.
2025: $0.72/km for the first 5,000 km, $0.66/km after.
2024: $0.70/km for the first 5,000 km, $0.64/km after.
2023: $0.68/km for the first 5,000 km, $0.62/km after.
Northern territories (NT, YT, NU): add $0.04/km in every year above.
How the CRA sets the rate
The CRA reviews fuel prices, vehicle depreciation, insurance costs, and maintenance data each fall and announces the new rate before January 1. The methodology mirrors the US IRS approach but produces different numbers because Canadian vehicle costs (insurance especially) and fuel taxes differ.
The per-km rate is what the CRA considers a non-taxable employer reimbursement ceiling. If your employer reimburses you above the CRA rate, the excess is taxable income.
FAQ
Will the rate go up again in 2027?
The 2027 rate will be announced by the CRA in late 2026. Year-over-year increases of $0.01 to $0.03 per kilometre have been the pattern recently. Plan around the current published rate; do not assume a future increase you can spend now.
Why are northern territories paid more?
Higher vehicle operating costs in NT, YT, and NU. Fuel costs more, parts cost more, insurance is rarer, and shipping a replacement vehicle is more expensive. The CRA's $0.04 bonus reflects those documented cost differences.
Track your Canada business mileage.
Free for 40 auto trips a month. CRA rates handled with the right tier and cap.
Download free on the App Store