Auto Allowance Limits

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2020

AUTO ALLOWANCE LIMITS – 2020

Tax-Exempt Automobile Allowance Limits on Payments by Employers to Employees Using Their Personal Vehicles for Business Purposes for 2020 (all provinces excluding territories)

$0.59 / kilometre on first 5,000 kms

$0.53 / kilometre in excess of 5,000 kms

(Reflects key cost components of owning and operating an automobile, such as depreciation, financing, insurance, maintenance and fuel costs.)


Employer-Provided Vehicles – Operating Expenses Taxable Benefit – Generally Prescribed Rate Relating to Personal Portion of Automobile Operating Expenses Paid by Employers for 2020

$0.28 / kilometre
(all taxpayers not employed principally in selling or leasing automobiles)

$0.25 / kilometre
(only taxpayers employed principally in selling or leasing automobiles)

(A separate automobile standby charge benefit for having an employer-provided vehicle available for personal use is also to be calculated and included in the employee’s income.)


Ceiling on Capital Cost of Passenger Vehicles for Capital Cost Allowance (CCA) for 2020

$30,000 (plus applicable federal and provincial sales taxes) for purchases after 2019

(This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.)


Maximum Allowable Interest Deductions on Automobile Purchase Loans for 2020

$300 per month for loans related to vehicles acquired after 2019


Limits on Deductible Automobile Leasing Costs for 2020

$800 per month (plus applicable federal and provincial taxes) for leases entered into after 2019

(This limit is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible automobile lease costs where the value of the vehicle exceeds the capital cost ceiling as indicated above.)

(Note: All posted rates are subject to change by Canada Revenue Agency or other government departments that are responsible for them.)

2019

AUTO ALLOWANCE LIMITS – 2019

Tax-Exempt Automobile Allowance Limits on Payments by Employers to Employees Using Their Personal Vehicles for Business Purposes for 2019 (all provinces excluding territories)

$0.58 / kilometre on first 5,000 kms

$0.52 / kilometre in excess of 5,000 kms

(Reflects key cost components of owning and operating an automobile, such as depreciation, financing, insurance, maintenance and fuel costs.)


Employer-Provided Vehicles – Operating Expenses Taxable Benefit – Generally Prescribed Rate Relating to Personal Portion of Automobile Operating Expenses Paid by Employers for 2019

$0.28 / kilometre
(all taxpayers not employed principally in selling or leasing automobiles)

$0.25 / kilometre
(only taxpayers employed principally in selling or leasing automobiles)

(A separate automobile standby charge benefit for having an employer-provided vehicle available for personal use is also to be calculated and included in the employee’s income.)


Ceiling on Capital Cost of Passenger Vehicles for Capital Cost Allowance (CCA) for 2019

$30,000 (plus applicable federal and provincial sales taxes) for purchases after 2018

(This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.)


Maximum Allowable Interest Deductions on Automobile Purchase Loans for 2019

$300 per month for loans related to vehicles acquired after 2018


Limits on Deductible Automobile Leasing Costs for 2019

$800 per month (plus applicable federal and provincial taxes) for leases entered into after 2018

(This limit is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible automobile lease costs where the value of the vehicle exceeds the capital cost ceiling as indicated above.)

(Note: All posted rates are subject to change by Canada Revenue Agency or other government departments that are responsible for them.)

2018

AUTO ALLOWANCE LIMITS – 2018

Tax-Exempt Automobile Allowance Limits on Payments by Employers to Employees Using Their Personal Vehicles for Business Purposes for 2018 (all provinces excluding territories)

$0.55 / kilometre on first 5,000 kms

$0.49 / kilometre in excess of 5,000 kms

(Reflects key cost components of owning and operating an automobile, such as depreciation, financing, insurance, maintenance and fuel costs.)


Employer-Provided Vehicles – Operating Expenses Taxable Benefit – Generally Prescribed Rate Relating to Personal Portion of Automobile Operating Expenses Paid by Employers for 2018

$0.26 / kilometre
(all taxpayers not employed principally in selling or leasing automobiles)

$0.23 / kilometre
(only taxpayers employed principally in selling or leasing automobiles)

(A separate automobile standby charge benefit for having an employer-provided vehicle available for personal use is also to be calculated and included in the employee’s income.)


Ceiling on Capital Cost of Passenger Vehicles for Capital Cost Allowance (CCA) for 2018

$30,000 (plus applicable federal and provincial sales taxes) for purchases after 2017

(This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.)


Maximum Allowable Interest Deductions on Automobile Purchase Loans for 2018

$300 per month for loans related to vehicles acquired after 2017


Limits on Deductible Automobile Leasing Costs for 2018

$800 per month (plus applicable federal and provincial taxes) for leases entered into after 2017

(This limit is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible automobile lease costs where the value of the vehicle exceeds the capital cost ceiling as indicated above.)

(Note: All posted rates are subject to change by Canada Revenue Agency or other government departments that are responsible for them.)