Auto Mileage Tracker

Mileage Logbook is an automatic mileage tracker that frees you from the headache of manually keeping mileage logs.

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Mileage Tracker

2024 mileage rates in Canada

As the new tax year begins, it's crucial to familiarize yourself with the mileage rates and calculations applicable to your business-related driving in Canada. For the 2024 tax year, the Canada Revenue Agency (CRA) has established specific cents per kilometer rates:

  1. For the provinces:
    • 70 cents per kilometer for the initial 5,000 kilometers driven.
    • 64 cents per kilometer for each additional kilometer beyond the initial 5,000 kilometers.
  2. For the territories:
    • 74 cents per kilometer for the initial 5,000 kilometers driven.
    • 68 cents per kilometer for each additional kilometer beyond the initial 5,000 kilometers.

Calculation of reimbursement or deduction

To understand how the calculation works, consider the following example: Suppose you have traveled a total of 4,000 kilometers for business-related purposes during the tax year. For provinces, the reimbursement or deduction can be calculated as follows:

  1. For the initial 5,000 kilometers driven, the rate is 70 cents per kilometer. Therefore, the reimbursement or deduction for the initial 5,000 kilometers would be $2,800 (4,000 km x $0.70).
  2. For each additional kilometer beyond the initial 5,000 kilometers, the rate is 64 cents per kilometer. Since you have traveled 4,000 kilometers in total, there are no additional kilometers beyond the initial 5,000. Hence, there would be no reimbursement or deduction for additional kilometers.

Record-Keeping and documentation

Remember, maintaining accurate records and documentation is essential when claiming mileage reimbursement or deductions. This includes keeping track of your business-related mileage, documenting the purpose of each trip, and retaining receipts for any additional expenses such as parking fees or tolls.

By understanding the mileage rates and guidelines set by the CRA, you can effectively navigate the process of claiming mileage reimbursement or deductions in the 2024 tax year. Should you require further assistance or have specific questions related to your circumstances, consider consulting a tax professional or contacting the CRA directly for personalized guidance.

Legal, Tax, and Accounting Advice

The material on this page is provided for informational purposes only and should not be considered as legal, tax, or accounting advice. For any legal or tax questions related to this content or specific issues, it is recommended to seek guidance from a professional legal, tax, or accounting advisor.

Does the app support CRA mileage rates?

Yes, Mileage Logbook fully supports CRA mileage rates for business-related travel in Canada. The app is designed to help you accurately track and calculate your mileage expenses based on the latest CRA rates. The app allows you to easily input your mileage and apply the appropriate rates.