This page summarises the per-kilometre vehicle reimbursement most commonly used in Ontario (a Canadian province), with Toronto as the operating reference point. The headline rate follows the Canada Revenue Agency reasonable allowance: $0.72 per kilometre for the first 5,000 km in a calendar year and $0.66 per kilometre for every kilometre beyond that. Travel inside the Northwest Territories, Yukon and Nunavut attracts an additional four cents per kilometre. Employers headquartered in Toronto use this reference to standardise expense policy across teams, keep allowances tax-free for employees and avoid disputes during a CRA payroll review. The page also lists the five most-searched road trips that begin or end in Toronto, three concrete use cases — field sales, home-care professionals and civil servants — and answers to the three questions readers ask most often about tolls, taxability and territorial premiums. Figures are reviewed every quarter and can be downloaded as PDF to attach to a corporate travel policy.
Ontario, with Toronto as the operating reference point, is Canada's most populous province, with finance and tech in Toronto, manufacturing in Windsor and government in Ottawa. The leading population centres beyond Toronto are Ottawa, Mississauga and Hamilton, which together account for most corporate driving in the province. Geography, climate and the balance between toll highways, twinned freeways and gravel access roads define the true per-kilometre cost of each business trip across Ontario.
The sectors that consume the most mileage in Ontario are financial services, automotive in Windsor and Oshawa and technology. Field sales reps, home-care nurses and project auditors drive trips along the 401 between Toronto, Kingston and Ottawa, with weekly averages between 500 and 1,200 km per employee. The headline rate follows the Canada Revenue Agency reasonable allowance: C$0.72 per kilometre for the first 5,000 km in a calendar year and C$0.66 per kilometre thereafter, with an additional C$0.04/km surcharge for travel to or within Yukon, Nunavut and the Northwest Territories.
From a tax standpoint, mileage reimbursement paid in Ontario stays free of income tax and CPP/EI when it is paid at or below the CRA reasonable rate and supported by a logbook covering date, origin, destination, distance and business purpose. Employers headquartered in Toronto typically require odometer photos at week start and end so the reimbursement holds up under a CRA payroll review (T4 / T2200 documentation).
Local nuance: Highway 407 ETR tolls in the GTA can exceed C$50 round-trip and are reimbursed separately from the per-km rate. As a result, the expense policy applied in Ontario should split out tolls (Highway 407 ETR, Confederation Bridge, Marine Atlantic ferries), parking and winter top-ups from the per-km figure. Typical trips — trips along the 401 between Toronto, Kingston and Ottawa — should be pre-approved when they exceed 350 km per day, so an overnight allowance can be budgeted instead of inflating the monthly mileage claim.
To see the current rates that apply in Ontario, follow the related links at the foot of this page: the full Canadian rate table by year, the most-searched road routes that begin or end in Toronto, and blog articles on logbook discipline, CRA evidence and exporting expense reports. The free mileage calculator simulates any trip from Toronto using the figures above and produces a PDF receipt ready to attach to a monthly expense submission.
In summary, a mileage policy that fits the reality of Ontario combines three pillars: the CRA reasonable allowance ceiling indexed to the headline C$0.72 / C$0.66 split, a regional supplement that reflects the highway corridors connecting Toronto with Ottawa, and a documentary trail — logbook, odometer photos, toll and ferry receipts — strong enough to defend the reimbursement at a CRA payroll review. Sectors such as financial services benefit directly from that discipline, securing budget predictability and protecting the employer in any future tax or employment audit in the province.
| Category | Per-km rate | Source |
|---|---|---|
| CRA reasonable allowance — first 5,000 km (2025) | $0.72/km | CRA Income Tax Folio S2-F3-C2 |
| CRA reasonable allowance — over 5,000 km | $0.66/km | CRA Income Tax Folio S2-F3-C2 |
| Northwest Territories / Yukon / Nunavut surcharge | +$0.04/km | CRA territorial rate addendum |
| Federal public service (NJC Travel Directive) | $0.625/km | NJC Appendix B (April 2024) |
Account executives based in Toronto log every visit with origin/destination and apply the CRA per-kilometre rate when they file expense claims.
Mobile workers servicing patients across Ontario log mileage from Toronto to each appointment and use the table above to compute the reimbursable amount.
Civil servants in Ontario on official travel reconcile their claims against the NJC Travel Directive and the CRA reasonable rate.
Local case study: Atlantic Service ONT, a financial services employer headquartered in Toronto with 7 field staff covering the Toronto–Ottawa corridor and the rest of the province, was logging 2256 km per employee per month before adopting the documentation workflow described above. After rolling out odometer photos at week start/end and aligning the per-km figure with the CRA reasonable allowance (C$0.72/C$0.66), Atlantic Service ONT cut internal expense rejections by 11%, kept the reimbursement fully exempt from income tax and CPP/EI, and closed the monthly mileage cycle in three business days instead of two weeks — without changing the overall travel budget for Ontario.