Canada mileage & CCA calculator 2025/2026
Work out the CRA reasonable per-km allowance, Capital Cost Allowance on passenger vehicles, and see your combined federal + provincial tax savings at a glance.
CRA reasonable allowance calculator
Per-km rate for business use of a personal vehicle. Higher rate on the first 5,000 km, lower rate after.
Used to find your combined federal + provincial marginal rate.
First 5,000 km
$3,600
at 72.0¢/km
Additional 7,000 km
$4,620
at 66.0¢/km
Total claim
$8,220
Effective 68.5¢/km
Combined marginal rate
29.6%
Fed 20.5% + Prov 9.2%
Estimated tax savings
$2,437
at 29.6% combined rate
Self-employed drivers claim this on their T2125 as a motor vehicle expense. Employees reimbursed at or below these rates receive the allowance tax-free; excess amounts are taxable income.
Capital Cost Allowance (CCA)
Depreciation deduction for a passenger vehicle used for business. Class 10 (≤ ceiling) or Class 10.1 (above ceiling).
Class 10.1 — vehicle cost is above the $37,000 ceiling for 2025. Only the ceiling amount is depreciable.
Excludes GST/HST — those are added separately for input tax credit purposes.
0 = first year placed in service.
CCA base
$37,000
Class 10.1 — AII active
Year 1 CCA (full)
$16,650
Business portion: $11,655
CCA for year 1
$16,650
Business portion: $11,655
Undepreciated capital cost
$20,350
remaining after this year
Total lifetime CCA
$37,000
assumes full recapture at disposition
CCA is optional — you can claim less to preserve deduction in later years. On disposition, recaptured depreciation becomes taxable income (up to original cost basis). Class 10.1 has no recapture or terminal loss.
Automobile taxable benefit
Standby charge + operating cost benefit for employees with a company car. Both add to taxable employment income.
Operating rate: 34¢ per personal km
32% personal use
Standby charge
$4,031
Reduced (40% of base)
Operating benefit
$2,720
8,000 km × 34¢
Total taxable benefit
$6,751
Added to employment income
Marginal tax rate
29.6%
Combined federal + provincial
Additional tax owed
$2,002
on $6751 benefit
The standby charge reduction requires personal use ≤50% AND personal km ≤20,004 annualised. An alternative method for the operating benefit (½ of standby, when conditions met) isn't modelled here — consult the T4130 Employers' Guide for edge cases.
GST / HST input tax credit
Registrants can claim back the tax paid on business-use vehicle expenses and part of the purchase price.
Combined tax rate: 13.00% (HST)
Gas, repairs, insurance (if taxable), parking, etc.
Operating ITC
$382
Tax paid: $546 × 70% business
Purchase ITC (capped)
$3,367
Capped at $4,810 (CCA ceiling)
Total annual ITC
$3,749
Claim on your GST/HST return
The purchase ITC is only claimable once, in the period the vehicle is acquired. This calculator shows the lifetime ITC on that purchase, not an annual amount. Insurance isn't always GST/HST-taxable — check your policy.
EV vs gas vs hybrid running cost
Annual energy cost at provincial residential electricity rates. Doesn't include insurance, depreciation, or maintenance.
Residential average — time-of-use and tier pricing can shift this materially.
Sedans 5.5–7.5 · SUVs 4.5–5.5 · trucks 3–4
EV annual cost
$465
2.6¢ per km
Hybrid annual cost
$1,440
8.0¢ per km
Gas annual cost
$2,448
13.6¢ per km
Track every business kilometre
MileEZ auto-detects your drives, categorises trips by purpose, and builds CRA-ready summaries of business km — so your T2125 is easier every April.
See MileEZ featuresThe CRA reasonable per-km allowance (2025)
The CRA publishes a "reasonable" per-kilometre rate annually for business use of a personal vehicle. For 2025 the rate is 72¢ per km on the first 5,000 km and 66¢ per km thereafter. An additional 4¢/km applies in Yukon, Northwest Territories, and Nunavut. Self-employed drivers claim this on Form T2125 as a motor vehicle expense. For employees, amounts at or below this rate are received tax-free; anything above is taxable.
Capital Cost Allowance on passenger vehicles
Passenger vehicles fall into Class 10 (cost at or below the ceiling) or Class 10.1 (cost above the ceiling). Both depreciate at 30% declining balance. For 2024 and 2025 the ceiling is $37,000 pre-tax — a vehicle costing more than that is still depreciated only on the ceiling amount for CCA purposes. The half-year rule normally cuts first-year CCA in half, but the Accelerated Investment Incentive (AII) replaces it with a 1.5× multiplier for vehicles acquired in 2024–2027, effectively allowing a 45% first-year deduction on the ceiling (vs 15% under the half-year rule).
Combined federal + provincial marginal rates
Canada's income tax is a combination of federal rates (14% to 33% in 2026) and provincial rates that vary significantly across the country. A self-employed driver in Ontario at $75,000 pays a combined marginal rate around 29.7%, while the same income in Quebec pays closer to 36.1% once provincial tax is layered on. Every dollar you deduct as a motor vehicle expense reduces your tax bill by your combined marginal rate — which is why accurate km records and a correctly claimed CCA matter.
GST/HST input tax credits on vehicle expenses
GST/HST registrants can claim input tax credits (ITCs) on the tax paid on vehicle expenses, proportional to business use. For a vehicle above the CCA ceiling, the purchase-price ITC is capped at the tax on the ceiling amount — so a $60,000 vehicle in Ontario (13% HST) gives an ITC of roughly $4,810 on the purchase, not $7,800. The ITC calculator above handles this cap automatically per province and year.
Company car taxable benefits — standby charge & operating benefit
If your employer provides you a company car, two separate taxable benefits get added to your employment income: the standby charge (2% of vehicle cost per month, or 24%/year, for owned vehicles with high personal use) and the operating cost benefit (34¢/km personal for 2025). Combined, they can add $10,000+ per year of taxable income for a mid-range vehicle. The benefit calculator handles the reduction formula that applies when personal use is 50% or less and personal km are kept below 20,004 annualised.
EV running cost across Canada
Canada has some of the cheapest and some of the most expensive residential electricity in North America — Quebec around 8¢/kWh, Nunavut around 37¢/kWh. A typical sedan at 6 km/kWh costs 1.3¢/km to charge in Quebec but 6.3¢/km in Nunavut. Gas at $1.60/L in an 8.5 L/100km vehicle costs 13.6¢/km everywhere. The fuel cost calculator above surfaces these deltas per province.
Keeping CRA-compliant vehicle records
The CRA expects a contemporaneous log of business km for motor vehicle expense claims. MileEZ automatically logs every trip with GPS accuracy, categorises it as business or personal, and produces CRA-ready summaries at tax time — so you never lose an allowable km to a missing record.