Effective January 1, 2024, the general prescribed rate used to determine the taxable benefit of employees relating to the personal portion of automobile expenses paid by their employers will remain at 33 cents per kilometre. For people employed principally in selling or leasing automobiles, the rate used to determine the employee’s taxable benefit will remain at 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 will increase from 68 to 70 cents per kilometre for the first 5,000 kilometres driven and from 62 to 64 cents for each additional kilometre. For the territories, the limit will increase to 74 cents per kilometre for the first 5,000 kilometres driven and 68 cents for each additional kilometre.
Employers providing a per-kilometre non-taxable allowance to their employees must ensure that the rates adhere to the Canada Revenue Agency's guidelines for reasonableness.