Canada mileage rate 2025

Official rate: CA$0.72/km effective 2025-01-01 — 2025-12-31. CRA — Reasonable per-kilometre allowance.

First 5,000 km/year; 66¢/km thereafter. Add 4¢/km in YT, NT, NU.

This page shows the historical 2025 rate. The current rate is for 2026. View current rate →

How the rate is set

The Canada Revenue Agency (CRA) publishes a reasonable per-kilometre allowance that employers can pay tax-free for employment-related driving in a personal vehicle. Within the limit, the allowance is non-taxable to the employee and fully deductible to the employer. The rate steps down after the first 5,000 km per year, with a +4¢/km premium for Yukon, NWT, and Nunavut.

10-year history

Year	Rate	Effective	Page
2026	CA$0.72/km	2026-01-01	/rates/ca/2026
2025	CA$0.72/km	2025-01-01 → 2025-12-31	/rates/ca/2025
2024	CA$0.70/km	2024-01-01 → 2024-12-31	/rates/ca/2024

Calculation examples

• 50 km × CA$0.72/km = CA$36.00/km
• 250 km × CA$0.72/km = CA$180.00/km
• 1000 km × CA$0.72/km = CA$720.00/km

International comparison

• United States (2025) — $0.7/mile
• Brazil (2025) — R$ 1,20/km
• Mexico (2025) — $0.93 MXN/km
• Colombia (2025) — $1.750 COP/km
• Portugal (2025) — 0,40 €/km
• United Kingdom (2025) — 45p/mile
• Spain (2025) — 0,26 €/km
• Argentina (2025) — $800 ARS/km

Related blog posts

• Understanding mileage reimbursement in 2025
• Mileage rates in Brazil for 2025
• Tax deduction for business mileage

Frequently asked questions

What is the official rate in 2025?

CA$0.72/km, published by Canada Revenue Agency (CRA) effective 2025-01-01.

Who pays the mileage rate?

Employers reimburse employees who use personal vehicles for business travel; the self-employed deduct it from income tax.

When does the rate change?

Typically January 1, with official publication between November and January.