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Mileage reimbursement calculator

Estimate a Canadian 2026 business vehicle allowance by kilometre, or a US 2024 mileage deduction by purpose. Choose the jurisdiction and eligible distance.

Calculator

Total allowance or deduction (currency shown below)
4,320.0000
Currency
CAD
Distance calculation
Purpose or tierDistanceRate per unitAmount
First annual tier (km)5,000.000.733,650.00
Additional kilometres1,000.000.67670.00

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How this calculator works

Canada mode uses 2026 prescribed allowance rates: $0.73 for the first 5,000 annual kilometres and $0.67 thereafter, with $0.04 extra in the territories. Prior reimbursed kilometres prevent restarting the first tier. US mode uses 2024 IRS rates of $0.67 business, $0.21 medical and $0.14 charitable per mile. A deduction reduces eligible income; it is not the tax saving or an automatic employer payment.

Formula

Canadian allowance = first-tier kilometres x first rate + remaining kilometres x later rate. US amount = business miles x 0.67 + medical miles x 0.21 + charity miles x 0.14.

Worked example

A Canadian provincial allowance for the first 6,000 business kilometres in 2026 is $3,650 + $670 = $4,320. In US 2024 mode, 1,000 business miles gives a $670 potential deduction.

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Frequently asked questions

Is commuting eligible?

Ordinary travel between home and a regular workplace is generally personal travel. Apply the relevant government eligibility rules.

Is a deduction the same as reimbursement?

No. A deduction can reduce taxable income, while reimbursement is money paid by an employer or client.

Can I enter miles in Canada mode?

Canada mode requires kilometres; US mode requires miles. Convert the distance first, or use custom mode with a rate in your chosen unit.

Sources

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