QC Automobile Deduction Limits for 2023

The Quebec government has confirmed that they are harmonizing the Automobile Deduction limits for 2023 with the Federal Government. The various limits and rates of automobile expenses and the calculation of the value of taxable benefits relating to the use of an automobile are contained in Quebec's tax legislation and regulations.

Effective January 1, 2023, the general prescribed rate used to determine the taxable benefit for employees relating to the personal portion of automobile expenses paid by their employers increased to 33 cents per kilometre.

For people employed principally in selling or leasing automobiles, the rate used to determine the employee’s taxable benefit was increased to 30 cents per kilometre. The limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes in all jurisdictions increased to 68 cents per kilometre for the first 5,000 kilometres driven and 62 cents for each additional kilometre.