Limits and Rates Related to the Use of an Automobile

The limits and rates used to determine deductible automobile expenses and calculate taxable benefits relating to the use of an automobile are as follows:

Deduction Limits and Rates for 2022 Applicable to the Use of an Automobile

  • The deductible limit for tax-exempt allowances paid by employers to employees is increased to $0.61/km for the first 5,000 kilometres travelled and $0.55/km for additional kilometres. For the Yukon, the Northwest Territories and Nunavut, the limit increased to $0.65/km for the first 5,000 kilometres travelled and $0.59/km for additional kilometres.
  • The prescribed amount used to determine the value of the taxable benefit an employee receives for the personal portion of the operating costs of an automobile provided by his or her employer is increased to $0.29/km. For taxpayers whose main occupation is selling or leasing automobiles, the prescribed amount is increased to $0.26/km.
  • The depreciable value of non zero-emission passenger vehicles for capital cost allowance purposes is increased to $34,000 (before GST and QST) for vehicles purchased after 2021.
  • The depreciable value of eligible zero-emission passenger vehicles for capital cost allowance purposes is increased to $59,000 (before GST and QST) for vehicles purchased after 2021. Eligible zero-emission passenger vehicles include plug-in hybrids with a battery capacity of at least 7 kWh and vehicles that are fully electric or fully powered by hydrogen.
  • The deductible limit for interest paid on amounts borrowed to purchase a passenger vehicle remains $300/month for loans related to vehicles purchased after 2021.
  • The deductible limit for leasing expenses is increased to $900/month (before GST and QST) for leases entered into after 2021. A separate restriction prorates deductible leasing expenses when the value of the passenger vehicle exceeds the depreciable value.
2021
  • The deductible limit for tax-exempt allowances paid by employers to employees remains $0.59/km for the first 5,000 kilometres travelled and $0.53/km for additional kilometres. For the Yukon, the Northwest Territories and Nunavut, the limit remains $0.63/km for the first 5,000 kilometres travelled and $0.57/km for additional kilometres.
  • The prescribed amount used to determine the value of the taxable benefit an employee receives for the personal portion of the operating expenses of an automobile provided by his or her employer was reduced to $0.27/km. For taxpayers whose main occupation is selling or leasing automobiles, the prescribed amount was reduced to $0.24/km.
  • The depreciable value of non zero-emission passenger vehicles for capital cost allowance purposes remains $30,000 (before GST and QST) for vehicles purchased after 2020.
  • The depreciable value of eligible zero-emission passenger vehicles for capital cost allowance purposes remains $55,000 (before GST and QST) for vehicles purchased after 2020. Eligible zero-emission passenger vehicles include plug-in hybrids with a battery capacity of at least 7 kWh and vehicles that are fully electric or fully powered by hydrogen.
  • The deductible limit for interest paid on amounts borrowed to purchase a passenger vehicle remains $300/month for loans related to vehicles purchased after 2020.
  • The deductible limit for leasing charges remains $800/month (before GST and QST) for leases entered into after 2020. A separate restriction prorates deductible leasing charges when the value of the passenger vehicle exceeds the depreciable value.
2020
  • For purposes of calculating capital cost allowance (CCA), the maximum capital cost of non zero-emission passenger vehicles remains $30,000 (plus GST and QST) for vehicles purchased after 2019.
  • For purposes of calculating CCA, the maximum capital cost of eligible zero-emission passenger vehicles remains $55,000 (plus GST and QST) for vehicles purchased after 2019. Eligible zero-emission passenger vehicles include plug-in hybrids that have a battery capacity of at least 7 kWh and vehicles that are fully electric or fully powered by hydrogen.
  • The limit on the deduction of leasing costs remains $800 per month (plus GST and QST) for leases entered into after 2019. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the maximum capital cost.
  • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes increased to 59 cents per kilometre for the first 5,000 kilometres and 53 cents for each additional kilometre. For the Yukon, the Northwest Territories and Nunavut, the limit increased to $0.63/km for the first 5,000 kilometres travelled and $0.57/km for additional kilometres.
  • The limit on the deduction of interest paid on amounts borrowed to purchase a passenger vehicle remains $300 per month for loans related to vehicles acquired after 2019.
  • The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer remains 28 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate remains 25 cents per kilometre.
2019
  • For purposes of capital cost allowance (CCA), the maximum capital cost of passenger vehicles remains unchanged at $30,000 (plus GST and QST) for vehicles purchased after 2018. 
  • The limit on the deduction of leasing costs remains unchanged at $800 per month (plus GST and QST) for leases entered into after 2018. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the maximum capital cost. 
  • The limit on the deduction of interest paid on amounts borrowed to purchase a passenger vehicle remains unchanged at $300 per month for loans related to vehicles acquired after 2018. 
  • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes increased to 58 cents per kilometre for the first 5,000 kilometres and 52 cents for each additional kilometre. For the Yukon, the Northwest Territories and Nunavut, the limit increased to $0.62/km for the first 5,000 kilometres travelled and $0.56/km for additional kilometres. 
  • The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer has been increased to 28 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate has been increased to 25 cents per kilometre.
2018
  • For purposes of capital cost allowance (CCA), the maximum capital cost of passenger vehicles remains unchanged at $30,000 (plus GST and QST) for vehicles purchased after 2017. 
  • The limit on the deduction of leasing costs remains unchanged at $800 per month (plus GST and QST) for leases entered into after 2017. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the maximum capital cost. 
  • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes increased to 55 cents per kilometre for the first 5,000 kilometres and 49 cents for each additional kilometre. For the Yukon, the Northwest Territories and Nunavut, the limit increased to $0.59/km for the first 5,000 kilometres travelled and $0.53/km for additional kilometres.
  • The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer has been increased to 26 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate has been increased to 23 cents per kilometre.
2017
  • For purposes of capital cost allowance (CCA), the ceiling on the capital cost of passenger vehicles is $30,000 (plus GST and QST) for vehicles purchased after 2016. 
  • The limit on deductible leasing costs is $800 per month (plus GST and QST) for leases entered into after 2016. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling. 
  • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes is 54 cents per kilometre for the first 5,000 kilometres and 48 cents for each additional kilometre. For the Yukon, the Northwest Territories and Nunavut, the limit remains $0.58/km for the first 5,000 kilometres travelled and $0.52/km for additional kilometres.
  • The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2016. 
  • The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer is 25 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate is 22 cents per kilometre.
2016
  • For purposes of capital cost allowance (CCA), the ceiling on the capital cost of passenger vehicles is $30,000 (plus GST and QST) for vehicles purchased after 2015. 
  • The limit on deductible leasing costs is $800 per month (plus GST and QST) for leases entered into after 2015. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling. 
  • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes is 54 cents per kilometre for the first 5,000 kilometres and 48 cents for each additional kilometre. For the Yukon, the Northwest Territories and Nunavut, the limit decreased to $0.58/km for the first 5,000 kilometres travelled and $0.52/km for additional kilometres.
  • The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2015. 
  • The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer is 26 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate is 23 cents per kilometre.
2015
  • For purposes of capital cost allowance (CCA), the ceiling on the capital cost of passenger vehicles is $30,000 (plus GST and QST) for vehicles purchased after 2014.
  • The limit on deductible leasing costs is $800 per month (plus GST and QST) for leases entered into after 2014. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling.
  • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes has been increased to 55 cents per kilometre for the first 5,000 kilometres and 49 cents for each additional kilometre. For the Yukon, the Northwest Territories and Nunavut, the limit increased to $0.59/km for the first 5,000 kilometres travelled and $0.53/km for additional kilometres.
  • The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2014.
  • The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer remains 27 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate remains 24 cents per kilometre.
2014
  • For purposes of capital cost allowance (CCA), the ceiling on the capital cost of passenger vehicles is $30,000 (plus GST and QST) for vehicles purchased after 2013.
  • The limit on deductible leasing costs is $800 per month (plus GST and QST) for leases entered into after 2013. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling.
  • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes remains 54 cents per kilometre for the first 5,000 kilometres and 48 cents for each additional kilometre. For the Yukon, the Northwest Territories and Nunavut, the limit remains $0.58/km for the first 5,000 kilometres travelled and $0.52/km for additional kilometres.
  • The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2013.
  • The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer remains 27 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate remains 24 cents per kilometre.
2013
  • For purposes of capital cost allowance (CCA), the ceiling on the capital cost of passenger vehicles is $30,000 (plus GST and QST) for vehicles purchased after 2012.
  • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes has been increased to 54 cents per kilometre for the first 5,000 kilometres and 48 cents for each additional kilometre. For the Yukon, the Northwest Territories and Nunavut, the limit increased to $0.58/km for the first 5,000 kilometres travelled and $0.52/km for additional kilometres.
  • The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2012. The limit on deductible leasing costs is $800 per month (plus GST and QST) for leases entered into after 2012. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling.
  • The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer has been increased to 27 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate has been increased to 24 cents per kilometre.

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