Mileage Reimbursement for Construction Workers in Canada: Get Every Kilometre Paid
Mileage reimbursement for construction workers in Canada is paid per kilometre when you drive your own vehicle between job sites. For 2026, the tax-free ceiling for an employer's per-kilometre allowance is 73¢ for the first 5,000 km and 67¢ for every kilometre after that. To get paid, you need a log of each business trip that your approver can check. The fastest route is to log trips automatically and invite your approver to see them.
Updated October 23, 2026.
Drive your own truck to job sites? Fuelshine logs every work drive automatically, so there is nothing to write down. Free to start on iPhone and Android.
What counts as business driving on a construction job
Business driving is travel you do for the job. For construction workers that usually means:
Driving between job sites during the day
Trips to a supplier or yard to pick up materials or tools
Site visits, quotes and client meetings
Driving to a site that is not your usual place of work
Driving from home to your regular workplace is generally commuting, not business travel. If your sites change every week, ask payroll where your business driving starts for the day.
How much mileage reimbursement can you get in 2026?
The CRA does not set what your employer must pay. It sets the ceiling for a tax-free allowance: pay at or under it, tied to the kilometres you drive, and it is generally not taxable income for you. For 2026 the ceiling in the provinces is:
73¢ per km for the first 5,000 business kilometres in a year
67¢ per km for every kilometre after that
The territories have their own, higher rates. Here is what that adds up to, with the maths shown:
Business km in a year | Maximum tax-free reimbursement | The maths |
3,000 km | $2,190 | 3,000 × $0.73 |
5,000 km | $3,650 | 5,000 × $0.73 |
8,000 km | $5,660 | 5,000 × $0.73 + 3,000 × $0.67 |
12,000 km | $8,340 | 5,000 × $0.73 + 7,000 × $0.67 |
Source: Department of Finance Canada, January 14, 2026. For the full breakdown, see our CRA mileage rate 2026 guide.
What your mileage log needs to show
Your approver, and the CRA if it ever asks, wants the same four things for each trip:
The date
Where you went (the job site or supplier)
Why you went (the job name or reason)
How far (kilometres)
Add your odometer reading at the start and end of the year if you can. A log you kept as you went is much easier to stand behind than one rebuilt from memory. The CRA mileage log requirements guide has the full list.
Why construction mileage logs go wrong
Job sites change, so the destination changes every week
Many short drives add up, and nobody remembers them on Friday
A paper logbook in the truck gets lost, wet or forgotten
A month-end spreadsheet means waiting for someone to check it
How to get your mileage paid faster: invite your approver
Install Fuelshine and sign up. It is free to start.
Drive as usual. Trips are recorded in the background. There is no start or stop button.
Tag each trip Business or Personal. One tap after the drive, or in a batch later.
Invite your approver from the app. That is whoever signs off your mileage: HR, payroll, your office manager or your foreman.
They approve, you track. Your approver sees each Business trip as you tag it and approves or rejects it. You see whether it is waiting, approved, rejected or paid.
Only trips you tag Business are shared with your approver. Your personal trips stay private. No more month-end spreadsheet to email and chase.
For approvers: see your crew's trips without chasing spreadsheets
If you sign off mileage for a construction crew, you should not have to wait for a file or check logs you cannot verify. With Fuelshine, each driver's Business trips reach you as they are tagged, and you approve or reject them in one click.
See each trip's date, distance and purpose in one place
Approve or reject with one click
Export approved trips for payroll or your accountant
Keep a clear record of what was approved
Want to see it with your own crew? Book a 30-minute demo, or ask one of your drivers to invite you.
Mileage reimbursement for construction workers: common questions
How much is mileage reimbursement for construction workers in Canada in 2026?
The CRA's tax-free ceiling for an employer's per-kilometre allowance in the provinces is 73¢ per km for the first 5,000 km and 67¢ per km after that. What your employer actually pays is set by your employment agreement or company policy.
Can I claim mileage for driving between job sites?
Driving between job sites for your employer is business travel. Your employer can reimburse it. If it does not, you may be able to claim vehicle expenses on your tax return if your employer signs form T2200. Ask payroll which applies to you.
Does my employer have to pay my mileage?
The CRA sets the tax-free ceiling, not the amount. Whether you are paid, and how much, depends on your employment agreement and company policy.
What if my employer gives me a company truck?
Per-kilometre reimbursement is usually for your own vehicle. With a company truck, ask payroll how personal use is handled.
Will my approver see my personal trips?
No. Only trips you tag Business are shared with your approver. Personal trips stay private.
Is Fuelshine free?
Fuelshine is free to start on iPhone and Android. Pro unlocks unlimited trips, multiple vehicles and advanced reports.
This is general information, not tax advice. Check with your payroll team or an accountant about your situation.
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