How do I calculate a 2026 CRA mileage allowance?
Split annual business kilometres at 5,000 km, apply the first-tier rate to the first segment, and apply the lower rate to kilometres above the threshold.
CRA worked example
CRA Mileage Rate 2026 Example
Use worked examples to split kilometres at the first 5,000 km threshold before comparing the allowance with an employer policy.
Guide by MileagePilotUpdated May 2, 2026
Short answer
A 2026 CRA mileage allowance example should split kilometres at 5,000 km, then apply the province or territory rate to each segment.
At a glance
- Province example: 7,000 km gives CAD 4,990.
- Territory example: 7,000 km gives CAD 5,270.
- Use the calculator when distance exceeds the first tier.
Province calculation
For provinces, 5,000 km x CAD 0.73 plus 2,000 km x CAD 0.67 equals CAD 4,990.
Territory calculation
For territories, 5,000 km x CAD 0.77 plus 2,000 km x CAD 0.71 equals CAD 5,270.
Official references
Common questions
Continue with tools
Calculate estimated reimbursement, review official rate tables, or download log templates.