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CRA Mileage Rate 2026: Simple Guide for Canadians Who Drive for Work

Writer: Vikash Verma
Vikash Verma
Dec 22, 2025
2 min read

Updated: Sep 30

The CRA mileage rate for 2026 is 73¢ per km for the first 5,000 km you drive for work, and 67¢ per km after that. Here is what it means for you, in plain words.

Drive for work in Canada? Fuelshine logs every work drive in km and builds your CRA mileage report. Get it on Google Play | Download on the App Store

The 2026 CRA rates

  • 73¢ per km for the first 5,000 business km

  • 67¢ per km after 5,000 km

  • Add 4¢ per km in the Yukon, Northwest Territories and Nunavut

Example: 1,000 business km at 73¢ is $730.

Who the rate is for

If you are an employee, the CRA rate is the benchmark your employer can use to pay you back for driving your own car for work. Your employer's policy sets what you actually get. If you are self-employed, you claim your actual vehicle costs (fuel, insurance, maintenance and so on) multiplied by the share of km you drove for work.

What your log needs

Every work trip needs a date, distance in km and a reason. Your normal commute does not count. Fuelshine records trips in the background, lets you tag each one as work or personal, and gives you an audit-ready report for your employer or for tax time.

FAQ

What is the CRA mileage rate for 2026?

73¢ per kilometre for the first 5,000 business km and 67¢ per kilometre after that, plus 4¢ per kilometre in the Yukon, Northwest Territories and Nunavut.

Can self-employed people use the CRA mileage rate?

The per-km rate is mainly the benchmark for employer reimbursement. Self-employed Canadians claim their actual vehicle costs multiplied by the share of km driven for work.

Does my commute count?

Generally no. Driving between home and your usual workplace is a commute. Trips to clients, between work sites and on errands for the business usually do count.

How long should I keep my mileage log?

The CRA generally asks you to keep records for six years after the end of the tax year they relate to.

This is general information, not tax advice. Check your situation with a tax professional.

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