# CRA reasonable per-kilometre allowance

> The Canada Revenue Agency benchmark: 72¢ for the first 5,000 km of employment-related driving, 66¢ thereafter (2026); +4¢ in YT/NT/NU.

**URL:** https://quilometragem.com/glossary/cra-reasonable-allowance

**Summary:** The Canada Revenue Agency benchmark: 72¢ for the first 5,000 km of employment-related driving, 66¢ thereafter (2026); +4¢ in YT/NT/NU.

- The CRA reasonable per-km allowance is the maximum tax-free amount an employer can pay an employee for business use of a personal vehicle.
- For 2026: 72¢/km for the first 5,000 employment-related kilometres in the calendar year, 66¢/km above; an additional 4¢/km applies in Yukon, Northwest Territories and Nunavut.
- Conditions for tax-free treatment: based solely on kilometres driven (no flat monthly), within the rate, and not combined with separate reimbursement for the same vehicle expenses.
- Anything above the rate is taxable as employment income on the T4.

The CRA reasonable per-km allowance is the maximum tax-free amount an employer can pay an employee for business use of a personal vehicle. For 2026: 72¢/km for the first 5,000 employment-related kilometres in the calendar year, 66¢/km above; an additional 4¢/km applies in Yukon, Northwest Territories and Nunavut. Conditions for tax-free treatment: based solely on kilometres driven (no flat monthly), within the rate, and not combined with separate reimbursement for the same vehicle expenses. Anything above the rate is taxable as employment income on the T4.