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CRA Standard Rate 2018 | Automobile Allowance Rates Canada

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Canada Revenue Agency (CRA)The CRA Standard Rate, or more commonly known as the “Automobile Allowance“,  is Canada’s version of the IRS Standard Mileage Rate which allows for Canadians to deduct business mileage on a cost per kilometre basis.

In this article, you will find all of the necessary information you need regarding the automobile allowance rates for all provinces & territories in Canada, from the years 2012 to 2018. Which is helpful if you have to take care of the previous tax years!

Before we get into the rates, let’s be clear on one thing. The CRA is quite strict when it comes to properly document the number of kilometres you’ve driven each year and plan to expense.

Top Mileage Tracker CRA

The CRA recommends that every person or business attempting to deduct their allowance keep a detailed and accurate mileage log. There are many accounts of the Canada Revenue Agency declining mileage logs due to incomplete or inaccurate information.

You can completely avoid this hassle, saving yourself hundreds of hours per year by using a mileage tracking app like Everlance.

Everlance is an automatic mileage tracking app available for both iOS and Android that runs silently in the background, automatically tracking your mileage as you drive and calculating your savings for each trip!

In addition, with Everlance you can also track your expenses (i.e. tolls, parking fees, coffee, .etc) & revenue as well. You can enter your information manually, or set up your bank account and we do it all for you automatically as it happens! It’s really that simple.

The best part? Everlance is free for 30 trips per month. If you want the unlimited trip tracking + expenses & revenue it’s only $5/mo.

Rules For Deducting Your Business Mileage

The CRA really only has 2 rules regarding deducting your business mileage on your tax returns as an employee or self-employed.

  1. You’re regularly required to work away from the office. This is a safeguard put in place to ensure you’re not just deducting your commute. For instance, if you work at Timmy’s and you’re not required to drive for the business – there are no mileage deductions you can take for this.
  2. You pay the costs of work-related travel out-of-pocket. You will need your employer to sign a T2200 form confirming your pay for your own travel. If your employer reimburses you then you can’t deduct your business mileage. Even worse, if the reimbursement (or allowance) is above what the CRA deems acceptable your employer is required to report the extra amount as income.

2018 CRA Automobile Allowance Rates

Province & TerritoriesAllowance Rates
Alberta$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
British Columbia$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
Manitoba$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
New Brunswick$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
Newfoundland & Labrador$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
Northwest Territories$0.59 Per Kilometre Up To 5,000 KM; $0.53 thereafter.
Nova Scotia$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
Nunavut$0.59 Per Kilometre Up To 5,000 KM; $0.53 thereafter.
Ontario$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
Prince Edward Island$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
Quebec$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
Saskatchewan$0.55 Per Kilometre Up To 5,000 KM; $0.49 thereafter.
Yukon$0.59 Per Kilometre Up To 5,000 KM; $0.53 thereafter.
These are the standard automobile allowance rates for Canada

CRA Automobile Allowances Previous Years

YearAllowance Rates
2017$0.54/first 5,000KM
$.48 each additional KM.

NT, NU & YT: Additional $0.04 per kilometre.
2016$0.54/first 5,000KM
$.48 each additional KM.

NT, NU & YT: Additional $0.04 per kilometre.
2015$0.55/first 5,000KM
$.49 each additional KM.

NT, NU & YT: Additional $0.04 per kilometre.
2013 - 2014$0.54/first 5,000KM
$.49 each additional KM.

NT, NU & YT: Additional $0.04 per kilometre.
2012$0.53/first 5,000KM
$.49 each additional KM.

NT, NU & YT: Additional $0.04 per kilometre.
These are the automobile allowance rates from the years 2012 - 2018.

Top Mileage Tracker CRA

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Dan Trapp is a longtime Internet marketer that works on Content @Everlance. When he's not busy tapping keys for the Everlance blog he's attempting to convert clicks into happy users.

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