Tax-Exempt Automobile Allowance Limits on Payments by Employers to Employees Using Their Personal Vehicles for Business Purposes for 2024 (all provinces excluding territories)
$0.70 / kilometre on first 5,000 kms
$0.64 / 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 2024
$0.33 / kilometre
(all taxpayers not employed principally in selling or leasing automobiles)
$0.30 / 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 2024
$37,000 (plus applicable federal and provincial sales taxes) for purchases after 2023
(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 2024
$350 per month for loans related to vehicles acquired after 2023
Limits on Deductible Automobile Leasing Costs for 2024
$1,050 per month (plus applicable federal and provincial taxes) for new leases entered into after 2023
(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.)
Tax-Exempt Automobile Allowance Limits on Payments by Employers to Employees Using Their Personal Vehicles for Business Purposes for 2023 (all provinces excluding territories)
$0.68 / kilometre on first 5,000 kms
$0.62 / 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 2023
$0.33 / kilometre
(all taxpayers not employed principally in selling or leasing automobiles)
$0.30 / 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 2023
$36,000 (plus applicable federal and provincial sales taxes) for purchases after 2022
(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 2023
$300 per month for loans related to vehicles acquired after 2022
Limits on Deductible Automobile Leasing Costs for 2023
$950 per month (plus applicable federal and provincial taxes) for new leases entered into after 2022
(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.)
Tax-Exempt Automobile Allowance Limits on Payments by Employers to Employees Using Their Personal Vehicles for Business Purposes for 2022 (all provinces excluding territories)
$0.61 / kilometre on first 5,000 kms
$0.55 / 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 2022
$0.29 / kilometre
(all taxpayers not employed principally in selling or leasing automobiles)
$0.26 / 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 2022
$34,000 (plus applicable federal and provincial sales taxes) for purchases after 2021
(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 2022
$300 per month for loans related to vehicles acquired after 2021
Limits on Deductible Automobile Leasing Costs for 2022
$900 per month (plus applicable federal and provincial taxes) for new leases entered into after 2021
(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.)