Canada: Increased automobile allowance limits, personal use in 2023
Four cent increase to the prescribed rates used to compute certain employee taxable benefits for 2023
Personal use in 2023
The Department of Finance announced a $0.04* (four cent) increase to the prescribed rates used to compute certain employee taxable benefits for 2023.
- The rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers increased to 33 cents per kilometer (from 29 cents per kilometer), as of 1 January 2023.
- The rate used to determine the taxable benefit of an employee who is employed principally in selling or leasing vehicles also increased to 30 cents per kilometer (from 26 cents per kilometer) for 2023.
Read a January 2023 report [PDF 229 KB] prepared by the KPMG member firm in Canada
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