Is the CRA mileage rate the same in Alberta, BC, and Ontario?
Yes. All 10 Canadian provinces use the same CRA benchmark rate in 2026: 73 cents per kilometre for the first 5,000 km and 67 cents per kilometre thereafter.
CRA Geographic Rates
Provinces vs Territories Rate Switch
Clarify the province-versus-territory choice before estimating CRA automobile allowance totals.
Guide by MileagePilotUpdated Apr 7, 2026
Short answer
In 2026, the CRA prescribed per-kilometre rates used as a reasonableness guide are 73¢/km for the first 5,000 km (67¢/km thereafter) across all 10 Canadian provinces. The 3 northern territories (Yukon, NWT, Nunavut) receive a 4¢/km supplement: 77¢/km for the first 5,000 km and 71¢/km thereafter.
At a glance
- All 10 Canadian provinces (ON, AB, BC, QC, MB, SK, NS, NB, NL, PE) share the identical 73¢/67¢ rate structure in 2026.
- Yukon, Northwest Territories, and Nunavut get a 4¢/km northern supplement (77¢/71¢).
- The 5,000 km threshold resets every calendar year on January 1.
- An allowance may be non-taxable when it is based only on business km, uses a reasonable rate, and does not reimburse the same vehicle use separately.
2026 Canadian Province & Territory Mileage Rates
CRA allowance limits divide Canada into two distinct geographic zones: the 10 provinces and the 3 northern territories. In both zones, the first 5,000 business kilometres are reimbursed at a higher rate to reflect fixed vehicle ownership costs, followed by a secondary per-kilometre rate.
| Jurisdiction | First 5,000 KM | Over 5,000 KM | Key Provinces / Territories |
|---|---|---|---|
| All 10 Canadian Provinces | 73¢ per km | 67¢ per km | Ontario, Alberta, British Columbia, Quebec, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, NL, PEI |
| 3 Northern Territories | 77¢ per km | 71¢ per km | Yukon, Northwest Territories, Nunavut |
2026 CRA prescribed limits for tax-exempt automobile allowances under Department of Finance guidelines.
Why Ontario, Alberta, and BC Share the Same CRA Rate
Unlike provincial sales taxes or minimum wage rates, the CRA automobile allowance standard is established at the federal level. Whether an employee drives in Toronto, Calgary, Vancouver, Montreal, or Winnipeg, the 2026 prescribed benchmark is 73 cents per kilometre for the first 5,000 km; tax treatment still depends on the full CRA conditions.
Employers may choose to reimburse at higher or lower rates according to internal policy, but the rate must be reasonable in the circumstances and the allowance must meet the other CRA conditions to remain non-taxable.
How to Calculate a Multi-Tier Canadian Allowance
When annual business travel exceeds 5,000 km, split the distance into two brackets before applying the rate.
- Example (Province): 8,000 km = (5,000 km × $0.73) + (3,000 km × $0.67) = $3,650 + $2,010 = CAD 5,660.
- Example (Territory): 8,000 km = (5,000 km × $0.77) + (3,000 km × $0.71) = $3,850 + $2,130 = CAD 5,980.
- Keep odometer logs with date, origin, destination, and business purpose for every trip.
Official references
Government of Canada 2026 automobile allowance limits
Official announcement from Department of Finance Canada.
CRA automobile allowance guidelines
CRA reasonable per-kilometre allowance rules.
Common questions
Why do territories get an extra 4 cents per kilometre?
The CRA provides an additional 4 cents per kilometre in Yukon, Northwest Territories, and Nunavut to account for higher northern operating costs, remote travel distances, and elevated fuel prices.
Does the 5,000 km threshold apply per vehicle or per driver?
Under CRA rules, the 5,000 km threshold applies per employee/driver on an annual basis for business travel in a calendar year.
Continue with tools
Calculate estimated reimbursement, review official rate tables, or download log templates.