Free Mileage Calculator for Canadian Businesses

Accurately Track and Optimize Your Business Travel Expenses with Our Free Mileage Calculator Tool

Canadian Mileage Reimbursement Calculator

How to use it?

1. Choose Your Calculation Method — Select either “CRA Rates” for standard rates or “Custom Rate” if you have a specific reimbursement rate in mind.

2. Enter Key Details — Pick the tax year and province/territory, then input the total kilometers driven for business purposes.

3. Calculate Reimbursement — Click the “Calculate Reimbursement” button to instantly see your total mileage reimbursement.

This makes reporting your travel fast, simple, and hassle-free! If you have any questions reach out to support@floatcard.com.

Mileage Reimbursements Basics and FAQs

How to Calculate Mileage Reimbursement?

Calculating mileage reimbursement involves multiplying the total distance traveled for business purposes by the applicable CRA mileage rate. To ensure accurate calculations and compliance with CRA guidelines for mileage, it’s essential to maintain a detailed log of kilometers driven for work-related activities.

1. Understand Current CRA Mileage Rates

Stay informed about the most recent CRA mileage rates to ensure accurate reimbursements. For the 2025 tax year, the rates are:

  • 72 cents per km for the first 5,000 km driven
  • 66 cents per km for each additional kilometer

Be aware of any additional rates that may apply in the Territories, as this information is vital for precise kilometre reimbursement.

2. Track Business Mileage Accurately

Implement an efficient system for employee mileage tracking, such as using dedicated apps or maintaining detailed logbooks. Ensure that your employees report their mileage accurately, including information like:

  • Date of travel
  • Destination
  • Purpose of the trip
  • Total kilometers driven

3. Apply the CRA Rates to Calculate Reimbursement

To determine the appropriate reimbursement amount, multiply the total number of business kilometers driven by the corresponding CRA mileage rate. Double-check your calculations to ensure they align with the CRA guidelines for mileage and that you’re applying the correct rate based on the total distance traveled.

4. Ensure Compliance with CRA Guidelines

Regularly review the CRA’s mileage rate updates and adjust your company’s reimbursement policies accordingly. Maintain thorough records of all mileage claims and reimbursements to support compliance and be prepared for potential audits.

What are Mileage Rates?

Mileage rates are the per-kilometre rates set by the Canada Revenue Agency (CRA) to reimburse employees for using their personal vehicles for business-related travel. These rates are designed to cover costs associated with operating a vehicle, such as fuel, maintenance, and depreciation.

Why Understanding Mileage Rates is Important for Canadian Companies

Understanding mileage rates is crucial for Canadian businesses to ensure compliance with CRA guidelines while effectively managing corporate travel expenses. By applying the correct rates and following proper reimbursement procedures, companies can:

  • Offer fair compensation to employees for their work-related vehicle use
  • Enhance financial transparency and maintain accurate records
  • Boost employee satisfaction by demonstrating a commitment to fair reimbursement practices

What are the current CRA mileage rates for Canadian companies?

For the 2025 tax year, the CRA mileage rates are set at:

  • 72 cents per km for the first 5,000 km driven
  • 66 cents per km for each additional kilometer

These rates apply to all provinces, with slightly higher rates for the Territories to account for increased travel costs in those regions.

How do I calculate mileage reimbursement for my employees?

To calculate mileage reimbursement for your employees, multiply the total number of business kilometers driven by the applicable CRA rate. For example, if an employee drove 6,000 km for work-related purposes in 2025, their reimbursement would be calculated as follows:

  • (5,000 km × $0.72) + (1,000 km × $0.66) = $4,260

Ensure that your employees maintain accurate records of their mileage, including dates, destinations, and purpose of travel, to maintain compliance with CRA guidelines.

What expenses are covered under mileage reimbursement?

Mileage reimbursement is designed to cover various expenses associated with operating a vehicle for business purposes, including:

  • Fuel costs
  • Regular maintenance and repairs
  • Depreciation of the vehicle’s value over time

By aligning your reimbursement practices with CRA guidelines, you can ensure that your employees are fairly compensated for these expenses while keeping your company compliant with tax regulations.

How can Canadian companies ensure compliance with CRA mileage guidelines?

To maintain compliance with CRA mileage guidelines, Canadian companies should:

  • Implement a robust system for tracking and recording business mileage
  • Apply the correct CRA rates when calculating reimbursements
  • Regularly review CRA updates and adjust their policies accordingly
  • Maintain detailed records of all mileage claims and reimbursements for potential audits

By following these best practices, you can ensure that your company remains compliant with tax-free vehicle expense regulations while effectively managing your corporate travel expenses.