I was recently asked what should employees be reimbursed for car mileage at a start up. Lucky you! The Canada Revenue Agency (CRA) already has the answer:
The automobile allowance rates for 2008 are:
- 52¢ per kilometre for the first 5,000 kilometres; and
- 46¢ per kilometre thereafter.
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre for travel.
This information is updated annually on the CRA website.
Please also keep in mind that sometimes it may be cheaper for an individual to rent a car for a day then to use their own car. For instance, if you live in Vancouver and are making a day trip to Redmond, WA to see Microsoft, it might be cheaper to rent a car for a day to drive there and back then for someone to use their own car and request reimbursement at the rates above. Use your best judgement with an eye for the bottom line.
If you are a company in the United States, the reimbursable mileage rate for 2008 is 50.5¢ as outlined in this statement and updated here annually.
Drive safe!
4 comments ↓
Useful idea
its a great help however i wish if you could give us latest rates as these are for 2008 and rates change every year.
I wish if you could give us the latest rates for mileage rates for 2011 and 2012
Thanks
I really wished you could leave a link to the CRA website that leads to a landing page that will take you to the latest available rates. Oh wait, there is.
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