Mileage Reimbursement 2026: CRA and IRS Rates, Simple Guide
Updated: Oct 1
If you drive your own car for work, your employer may pay you back for every work kilometre or mile. Here are the 2026 rates, which trips count, and what you need to get paid.
Drive your own car for work? Fuelshine logs every work trip automatically and gives you a reimbursement report to send your employer. Get it on Google Play | Download on the App Store
Employer or fleet manager? Get a free 60-second audit of your mileage reimbursement setup. Start the free audit
The 2026 rates
Canada (CRA): 73¢ per km for the first 5,000 km, then 67¢ per km. Add 4¢ per km in the Yukon, Northwest Territories and Nunavut.
USA (IRS): 72.5¢ per business mile from January 1 to June 30, and 76¢ per mile from July 1, 2026.
Your employer's policy sets what you are actually paid. Many employers use the CRA or IRS rate.
Which trips count
Trips between work sites, to clients, to a supplier or to the bank for the business generally count. Your normal commute between home and your usual workplace generally does not. Short trips add up, so log them all.
What your log needs
For every work trip: the date, where you started and ended, the distance, and the reason for the trip. A log made at the time of the trip is stronger than one rebuilt from memory. Fuelshine records all of this automatically and turns it into an audit-ready report.
Get paid for every work mile: Get it on Google Play | Download on the App Store
See also: how to track mileage for reimbursement from your employer and the best CRA mileage app in Canada.
FAQ
What is the mileage reimbursement rate in 2026?
In Canada, the CRA rate is 73¢ per km for the first 5,000 km and 67¢ per km after that. In the US, the IRS rate is 72.5¢ per mile from January 1 to June 30, 2026, and 76¢ per mile from July 1, 2026.
Does my commute count for reimbursement?
Generally no. Driving between home and your usual workplace is a commute. Trips between work sites, to clients or on errands for the business usually do count.
What should a mileage log include?
The date, start and end points, distance and the business reason for each trip.
How do I get reimbursed faster?
Send your employer a clear report each month with every trip listed. An app that logs trips automatically saves you from rebuilding the list by hand.
See where your mileage reimbursement stands in 60 seconds
Answer a few questions and get an audit-ready view of your reimbursement risks. No credit card. Start the free audit
This is general information, not tax advice. Check your situation with a tax professional.
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