Principal Changes – Taxable Benefits Granted in 2024
Rates related to the use of a motor vehicle
Allowance for the use of a motor vehicle
For 2024, the per-kilometre rate we generally consider reasonable for determining if the allowance you pay to an employee for the use of a motor vehicle is reasonable is $0.70 for the first 5,000 kilometres and $0.64 for each additional kilometre.
Operating-costs benefit related to an automobile made available to an employee
For 2024, the per-kilometre rate for calculating the operating-costs benefit of an automobile made available to an employee for personal use is $0.30 if the employee is engaged principally in selling or leasing automobiles. In all other cases, it is $0.33.
Meals and lodging provided to a restaurant or hotel employee
Meals
For 2024, the maximum price for calculating the value of the benefit related to meals provided to a restaurant or hotel employee is $10.69. For 2025, it is $11.57.
Lodging
For 2024, the maximum weekly price for calculating the value of the benefit related to lodging provided to a restaurant or hotel employee is $58.00. For 2025, it is $61.71.
Low-interest loans
The table below lists the prescribed interest rates for 2024 for calculating the value of the benefit related to a low-interest loan granted to an employee or a shareholder.
Period of the year | Prescribed interest rate for 2024 |
---|---|
1st quarter / January 1 to March 31 | 6% |
2nd quarter / April 1 to June 30 | 6% |
3rd quarter / July 1 to September 30 | 5% |
4th quarter / October 1 to December 31 | 5% |
Security option deduction
Effective June 25, 2024, the increased rate used to calculate the security option deduction is reduced to 33.33% (from 50%). The deduction is now calculated at 33.33% of the amount of a benefit deemed to be received by an employee if:
- the sale or exchange of securities as a result of which the employee is deemed to have received the benefit occurred after June 24, 2024
- the transaction, event or circumstance as a result of which the employee is deemed to have received the benefit occurred after June 24, 2024
A range of conditions must be met for the increased rate to apply.
For more information, see sections 7.20.2 and 7.20.3 of guide IN-253-V, Taxable Benefits.