What is the CRA mileage rate 2026 for Ontario?
Ontario uses 73 cents per kilometre for the first 5,000 km in 2026 and 67 cents per kilometre after that.
CRA province rate guide
CRA Mileage Rate 2026 Ontario
Ontario uses the CRA province automobile allowance rates: 73 cents per kilometre for the first 5,000 km in 2026 and 67 cents per kilometre after that.
Guide by MileagePilotUpdated May 2, 2026
Short answer
Ontario uses the CRA province automobile allowance rates for 2026: 73 cents per kilometre for the first 5,000 kilometres and 67 cents per kilometre after that. The higher territory rates do not apply to Ontario.
At a glance
- Use the province rate path for Ontario, not the territory rate path.
- Split the calculation at 5,000 kilometres when annual business kilometres exceed the threshold.
- A reasonable per-kilometre allowance is usually treated differently from a flat taxable car allowance.
Ontario allowance example
For 7,000 business kilometres in Ontario during 2026, the first 5,000 km use 73 cents per kilometre and the remaining 2,000 km use 67 cents per kilometre. That produces a CRA benchmark allowance of CAD 4,990 before comparing it with the employer policy.
Ontario does not use the CRA territory uplift. Use the territory rate only for the territories listed in CRA guidance.
Taxable allowance check
The CRA rate is a benchmark for a reasonable per-kilometre allowance. The tax treatment still depends on whether the payment is tied to business kilometres and whether records support the trips.
- Keep kilometres, dates, destinations, and business purpose.
- Avoid mixing a flat monthly car allowance with a per-kilometre allowance without checking payroll treatment.
- Use the calculator for the tier split instead of averaging the rate manually.
Official references
CRA mileage rate 2026
Full province and territory rate table with official-source links.
CRA taxable allowance guide
Explains when an automobile allowance is taxable.
Government of Canada 2026 automobile allowance rates
Official 2026 province and territory automobile allowance rates.
Common questions
Does Ontario use the CRA territory mileage rate?
No. Ontario follows the province rate. The higher territory rate is for the territories covered by CRA's northern allowance guidance.
Continue with tools
Calculate estimated reimbursement, review official rate tables, or download log templates.