Revenue Canada Vehicle Allowance

2019 cra mileage rate.

Revenue canada vehicle allowance. Canada automobile allowance rate. Standard mileage rate it is not a fixed value and can vary year to year. To keep up with the rising costs of operating vehicles revenue canada has increased the maximum tax exempt car allowance deductible for employees to 55 cents per kilometre for the first 5 000 kilometres and to 49 cents per kilometre for distances travelled in excess of 5 000 kilometres. Tagged automobile allowance rates car allowance rates cra.

Note that goods and services tax gst and provincial sales tax pst or harmonized sales tax hst should not be included when calculating the cost of a vehicle to determine its class and are. An allowance is any payment that employees receive from an employer for using their own vehicle in connection with or in the course of their office or employment without having to account for its use. 53 per kilometre driven after that. 58 per kilometre for the first 5 000 kilometres.

Read on to learn more about automobile allowance rates and automobile benefits and what it all means for your taxes. This is known as the cra mileage rate or the automobile allowance rate and just as the u s. Standard mileage rate it is not a fixed value and can vary year to year. The canada revenue agency provides a chart of vehicle definitions for vehicles bought or leased after june 17 1987 and used to earn business income.

In the northwest territories yukon and nunavut there is an additional 4 per kilometre allowed for travel. To keep up with the rising costs of operating vehicles revenue canada has increased the maximum tax exempt car allowance deductible for employees to 59 cents per kilometre for the first 5 000 kilometres and to 53 cents per kilometre for distances travelled in excess of 5 000 kilometres. This is known as the cra mileage rate or the automobile allowance rate and just as the u s. The canada revenue agency also referred to as cra and the canadian equivalent to the irs allows residents to deduct business mileage on a cost per kilometre basis.

The automobile allowance rates for 2020 are. 59 per kilometre for the first 5 000 kilometres driven. The automobile allowance rates for 2019 are. An allowance is taxable unless it is based on a reasonable per kilometre rate.

If your employer provides you with automobile benefits or allowances you d be wise to brush up on which cra rules may affect you.