The 2026 allowance rates.
The first tier covers the first 5,000 business kilometres in the year. The lower rate applies to additional kilometres.
| Location | First 5,000 km | Additional km |
|---|---|---|
| Canadian provinces | $0.73 / km | $0.67 / km |
| Yukon, Northwest Territories & Nunavut | $0.77 / km | $0.71 / km |
An employee allowance example.
At the 2026 provincial rates, 6,000 eligible business kilometres would give a reference allowance of $4,320: 5,000 × $0.73, plus 1,000 × $0.67. This is an allowance amount, not the employee’s tax saving.
Self-employed expenses use a different calculation.
For mixed-use vehicles, self-employed claims generally use the business share of eligible actual costs. For instance, 40% business use applied to $10,000 of eligible shared vehicle costs gives $4,000 before any applicable limits or adjustments. Keep the underlying receipts and vehicle-use records.
What the estimate in Klicksy means.
Klicksy displays an allowance estimate based on recorded business kilometres, the trip’s tax year and the selected Canadian jurisdiction. Treat it as a reference for an allowance, rather than a refund, a tax saving or a completed expense claim.
Check your trip purposes and jurisdiction, then use the exported mileage with the expense records needed for your situation.
Business driving needs a business reason.
For employees, driving between home and a regular workplace is generally personal; point-of-call and other exceptions depend on the circumstances. A saved destination or an automatic “Business” label does not establish tax eligibility. Review the purpose of the drive.
Official sources
This guide provides general information. Confirm the rules for your situation with the CRA or your accountant.
Common questions
Are these rates for every Canadian driver?
No. These are prescribed employee automobile allowance rates. A self-employed expense claim, an employee expense deduction and an employer reimbursement have different rules.
Do the rates change each year?
They can. The figures shown here are for 2026 and were checked on October 3, 2026. Use the CRA source for the year you are reviewing.