The CRA automobile allowance rate for 2026 depends on whether the employee drives in a Canadian province or territory.
For ordinary employer-paid, per-kilometre automobile allowances, the 2026 prescribed rates are:
| Location | First 5,000 km | After 5,000 km |
|---|---|---|
| Canadian provinces | $0.73/km | $0.67/km |
| Northwest Territories, Nunavut & Yukon | $0.77/km | $0.71/km |
The Department of Finance increased all four rates by one cent for 2026.
2026 CRA Mileage Rates by Province
For the general prescribed automobile allowance, all ten provinces use the same 2026 rate.
| Province | First 5,000 km | Additional km |
|---|---|---|
| Alberta | $0.73 | $0.67 |
| British Columbia | $0.73 | $0.67 |
| Manitoba | $0.73 | $0.67 |
| New Brunswick | $0.73 | $0.67 |
| Newfoundland and Labrador | $0.73 | $0.67 |
| Nova Scotia | $0.73 | $0.67 |
| Ontario | $0.73 | $0.67 |
| Prince Edward Island | $0.73 | $0.67 |
| Quebec | $0.73 | $0.67 |
| Saskatchewan | $0.73 | $0.67 |
CRA lists 73 cents per kilometre for the first 5,000 kilometres and 67 cents for each additional kilometre for 2026 provincial travel.
This means there isn’t a different general CRA allowance rate for Ontario versus Alberta, Quebec or British Columbia.
2026 CRA Mileage Rates for the Territories
The three territories receive a four-cent-per-kilometre increase over the provincial rates.
| Territory | First 5,000 km | Additional km |
|---|---|---|
| Northwest Territories | $0.77 | $0.71 |
| Nunavut | $0.77 | $0.71 |
| Yukon | $0.77 | $0.71 |
For example, 4,000 business kilometres cost 4,000 × $0.77 = $3,080 in Yukon and 4,000 × $0.73 = $2,920 in Ontario, a difference of $160.
The higher territorial rate is built directly into the prescribed allowance framework.
How the 5,000-Kilometre Threshold Works
The rate drops after the first 5,000 business kilometres in the year. For example, an Ontario employee who drives 8,000 business kilometres:
- First 5,000 km: 5,000 × $0.73 = $3,650
- Remaining 3,000 km: 3,000 × $0.67 = $2,010
- Total allowance: $5,660
You should not calculate all 8,000 kilometres at 73 cents.
Example for a Canadian Territory
The same 8,000 business kilometres driven in a territory:
- First 5,000 km: 5,000 × $0.77 = $3,850
- Remaining 3,000 km: 3,000 × $0.71 = $2,130
- Total allowance: $5,980, which is $320 more than in a province
Are These Rates Mandatory Reimbursement Rates?
Not exactly.
The rates are prescribed amounts used in determining whether a per-kilometre automobile allowance can generally be considered reasonable for tax purposes.
CRA explains that when an employer uses the prescribed rate to cover the main costs of an employee using their own vehicle for employment duties, the allowance is generally considered reasonable.
CRA also notes that a higher or lower rate may still be reasonable depending on the circumstances—for example, vehicle type, driving conditions or unusually high fuel costs.
If a per-kilometre allowance is not considered reasonable, however, it may become taxable to the employee.
Related guide: Employee Mileage Reimbursement in Canada: Tax-Free Rules & Policy
Why Do Some Websites Show Different Rates for Every Province?
This is where CRA mileage searches become confusing.
CRA also publishes a table called CRA Kilometric Rates, with a different amount for every province and territory.
The CRA kilometric rates effective October 1, 2026 (taxes included) are:
| Province/Territory | CRA Travel Rate |
|---|---|
| Alberta | 59.5¢/km |
| British Columbia | 63.0¢/km |
| Manitoba | 59.0¢/km |
| New Brunswick | 63.5¢/km |
| Newfoundland and Labrador | 65.5¢/km |
| Northwest Territories | 74.5¢/km |
| Nova Scotia | 63.5¢/km |
| Nunavut | 70.0¢/km |
| Ontario | 66.0¢/km |
| Prince Edward Island | 63.0¢/km |
| Quebec | 64.5¢/km |
| Saskatchewan | 58.5¢/km |
| Yukon | 74.0¢/km |
But these are not the general 73¢/67¢ employee automobile allowance rates.
CRA explicitly says these province-specific rates apply to CRA employees and other individuals travelling on CRA business under the CRA Directive on Travel. They are reviewed quarterly.
That distinction is essential.
General CRA Allowance vs CRA Travel Directive Rate
Think of the two systems this way:
General Prescribed Automobile Allowance
Used when evaluating employer allowances for employees using their personal vehicles for employment duties.
2026:
Provinces: 73¢ / 67¢
Territories: 77¢ / 71¢
CRA Directive on Travel
Applies specifically to eligible travel under the CRA’s own travel directive.
The rate:
varies by province/territory
and:
can change quarterly
For example, Ontario’s CRA Directive on Travel rate was 63.0¢/km effective January 1, 2026, but increased to 66.0¢/km effective October 1, 2026.
Therefore, an ordinary private-sector employee should not automatically use the province-specific CRA employee travel table.
2025 vs 2026 CRA Automobile Rates
The general prescribed allowance increased by one cent in 2026.
| Location | 2025 | 2026 |
|---|---|---|
| Provinces — first 5,000 km | $0.72 | $0.73 |
| Provinces — additional km | $0.66 | $0.67 |
| Territories — first 5,000 km | $0.76 | $0.77 |
| Territories — additional km | $0.70 | $0.71 |
The Department of Finance officially announced these increases effective January 1, 2026.
Related guide: CRA Mileage Rate 2026 (with the 2015–2026 rate history)
Example: 15,000 Business Kilometres
| 15,000 business km | British Columbia | Yukon |
|---|---|---|
| First 5,000 km | 5,000 × $0.73 = $3,650 | 5,000 × $0.77 = $3,850 |
| Remaining 10,000 km | 10,000 × $0.67 = $6,700 | 10,000 × $0.71 = $7,100 |
| Total | $10,350 | $10,950 ($600 more) |
What Costs Is the Mileage Allowance Intended to Cover?
A reasonable per-kilometre allowance is intended to account for the costs associated with an employee using their own vehicle for employment duties.
CRA’s guidance on operating costs includes expenses such as:
- Fuel
- Maintenance
- Repairs
- Insurance
- Licence costs
CRA treats certain expenses separately, including parking and highway or bridge tolls.
This is why employers should have a clear mileage reimbursement policy explaining which expenses the kilometre rate covers and which can be claimed separately.
Do You Need a Mileage Log?
Keeping accurate records is important.
Instead of recording only a monthly total, a business mileage log should ideally capture information such as:
Date
Destination
Business purpose
Starting/ending kilometre information or distance
Business kilometres driven
This helps support the calculation if the mileage allowance or employment vehicle expenses are later reviewed.
Frequently Asked Questions
What is the CRA mileage rate in Ontario for 2026?
For the general prescribed automobile allowance, Ontario uses 73¢/km for the first 5,000 km and 67¢/km afterward.
Is the CRA mileage rate different in Alberta?
Not for the general prescribed employee allowance. Alberta uses the same 73¢/67¢ rates as the other provinces.
What is the 2026 mileage rate in Yukon?
For the general prescribed allowance, Yukon uses 77¢/km for the first 5,000 km and 71¢/km afterward.
Why does CRA show Ontario at 66¢ per kilometre?
The 66¢/km Ontario rate effective October 1, 2026 belongs to the separate CRA Directive on Travel table. It applies to CRA employees and others covered by that directive—not to the general prescribed automobile allowance.
What is the mileage rate in BC or New Brunswick for 2026?
For the general prescribed allowance, British Columbia and New Brunswick use the same rate as every province: 73¢/km for the first 5,000 km and 67¢/km afterward. Their separate CRA Directive on Travel rates (October 1, 2026) are 63.0¢ for BC and 63.5¢ for New Brunswick.
Did the CRA mileage rate increase in 2026?
Yes. The general provincial rates increased from 72¢/66¢ in 2025 to 73¢/67¢ in 2026. Territorial rates increased from 76¢/70¢ to 77¢/71¢.
Final Thoughts
For most searches about the CRA automobile allowance rate by province, the 2026 calculation is straightforward:
All provinces → 73¢/km for the first 5,000 km, then 67¢/km
All territories → 77¢/km for the first 5,000 km, then 71¢/km.
Don’t confuse those rates with CRA’s separate quarterly Directive on Travel rates, which vary individually by province and territory.
Use our CRA Mileage Calculator 2026 to select your location, enter your business kilometres and automatically apply the correct first-5,000-km and additional-kilometre rates.
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