Canada: Increased automobile allowance limits, personal use in 2022
Two cent increase to the prescribed rates used to compute certain employee taxable benefits for 2022
Personal use in 2022
The Department of Finance announced a $0.02* (two cent) increase to the prescribed rates used to compute certain employee taxable benefits for 2022.
- The rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers increased to 29 cents per kilometer (from 27 cents per kilometer), as of 1 January 2022.
- The rate used to determine the taxable benefit of an employee who is employed principally in selling or leasing vehicles also increased to 26 cents per kilometer (from 24 cents per kilometer) for 2022.
Most other limits and rates that applied in 2021 have increased for 2022.
Read a January 2022 report [PDF 345 KB] prepared by the KPMG member firm in Canada
*$=Canadian dollar
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