CRA rate guide
CRA Automobile Allowance Rates 2021
Official CRA rates with first-5,000 and post-threshold values.
This 2021 CRA automobile allowance guide is built for Canada users who need the current per-kilometre rates before running an allowance estimate. The main distinction is whether the travel falls under province rates or territory rates, plus the threshold where the rate steps down after the first segment.
At a glance
Country: Canada
Tax year: 2021
Scenarios covered: 2
Primary rates
Business / Province: 0.590/km -> 0.530/km
Business / Territory: 0.630/km -> 0.570/km
Official sources
Current rate reference
Business / Province
First 5,000 km (up to 5,000 km) · CAD 0.590/km; After 5,000 km · CAD 0.530/km
Source: Government of Canada 2021 automobile allowance ratesBusiness / Territory
First 5,000 km (up to 5,000 km) · CAD 0.630/km; After 5,000 km · CAD 0.570/km
Source: Government of Canada 2021 automobile allowance ratesHow to use this rate page
- Choose province or territory treatment before calculating.
- Account for the first threshold separately from the post-threshold rate.
- Keep trip purpose and distance evidence aligned with the allowance method you use.
Practical notes
CRA rate pages are most useful when paired with the calculator because the threshold split can change the total meaningfully.
For mixed unit workflows, convert or use the calculator rather than doing the threshold math manually.
Rate guide FAQ
What does the 2021 rate cover on this page?
This page covers Business / Province, Business / Territory for Canada using the published 2021 rate set tied to the listed source link.
Should I use the CRA Automobile Allowance Rates 2021 page or the calculator?
Use this page when you want the published reference rate and source context. Use the calculator when you want a total estimate based on distance, year, and scenario selection.
What records should I keep with the 2021 rate?
Keep trip date, destination, purpose, and distance records, plus any policy or filing notes that explain why this rate applies to the claim.
Is this the latest available year?
This is currently the only published year in the dataset for this country flow, so there is no prior-year comparison block yet.