Blog · October 26, 2026

CRA kilometre rates for 2026: 73¢ and 67¢, and who can actually use them

The full table

Some websites still show 72¢ and 66¢ as the 2026 figures. Those are the 2025 rates; the CRA page above lists 73¢ and 67¢ for 2026.

What these rates are for

These are the rates the CRA considers a reasonable allowance when an employer pays an employee for using their own car for work. They are the benchmark employers use to reimburse business kilometres.

Example: an employee in Alberta drives 6,200 business kilometres in 2026, and the employer reimburses at the CRA rates.

5,000 × $0.73 + 1,200 × $0.67 = $3,650 + $804 = $4,454

To get reimbursed, the employee still needs a record of those kilometres: date, destination, purpose and distance for each trip.

If you are self-employed, you do not deduct 73¢ per km

This is the most common confusion. A sole proprietor does not multiply kilometres by the CRA rate. You deduct your actual vehicle costs (fuel, insurance, maintenance and repairs, licence and registration, lease payments or loan interest, capital cost allowance) multiplied by your business-use percentage:

business km ÷ total km × total vehicle expenses

The CRA's example: 27,000 business kilometres out of 30,000 in total, with $7,000 of vehicle expenses, gives a deduction of $6,300. Two things make that number stand up: a logbook for the kilometres, and receipts for the expenses.

So why do self-employed people look up the rate?

It is a useful yardstick. Multiplying your business kilometres by the CRA rate gives a rough idea of what that driving is worth, and a business that bills clients for travel often uses it as a fair per-kilometre charge. It just is not the number that goes on your T2125.

When the 2027 rates come out

The CRA publishes new rates around the turn of the year; the 2026 page was last updated on January 19, 2026. We add them to our rates page when the official numbers are published.

Sources

• CRA — Reasonable per-kilometre allowance (page modified 2026-01-19)
• CRA — Motor vehicle expenses (self-employed)
• CRA — Motor vehicle records

Facts checked against the official sources on October 26, 2026. This article is general information, not tax advice. Rules change — confirm with the tax authority or an accountant before you file.