How to use a gas mileage reimbursement calculator
This makes reporting your travel fast, simple and hassle-free.
Lorem ipsum dolor site amet elit
Select either “CRA Rates” for standard rates or “Custom Rate” if you have a specific reimbursement rate in mind.
Lorem ipsum dolor site amet elit
Pick the tax year and province/territory, then input the total kilometres driven for business purposes.
Lorem ipsum dolor site amet elit
Click the “calculate reimbursement” button to instantly see your total mileage reimbursement.
Make mileage reimbursement fast, simple and hassle-free. Try it below!
Try Float’s mileage calculator
Gas mileage reimbursements basics and FAQs
How to calculate gas mileage reimbursement
Calculating mileage reimbursement involves multiplying the total distance traveled for business purposes by the applicable CRA (Canadian Revenue Agency) mileage rate. To ensure accurate calculations and compliance with CRA guidelines for mileage, it’s essential to maintain a detailed log of kilometres driven for work-related activities.
Lorem ipsum dolor site amet elit
Stay informed about the most recent CRA mileage rates to ensure accurate reimbursements. For the 2025 tax year, the rates are:
- 72 cents per km for the first 5,000 km driven
- 66 cents per km for each additional kilometre
- An additional 4 cents per km applies for travel in the Northwest Territories, Yukon and Nunavut
Lorem ipsum dolor site amet elit
Implement an efficient system for employee mileage tracking, such as using dedicated apps or maintaining detailed logbooks. Ensure that your employees report their mileage accurately, including information like:
- Date of travel
- Destination
- Purpose of the trip
- Total kilometres driven
Lorem ipsum dolor site amet elit
To determine the appropriate reimbursement amount, multiply the total number of business kilometres driven by the corresponding CRA mileage rate. Double-check your calculations to ensure they align with the CRA guidelines for mileage and that you’re applying the correct rate based on the total distance traveled.
Lorem ipsum dolor site amet elit
Regularly review the CRA’s mileage rate updates and adjust your company’s reimbursement policies accordingly. Maintain thorough records of all mileage claims and reimbursements to support compliance and be prepared for potential audits.
Mileage rates are the per-kilometre rates set by the Canada Revenue Agency (CRA) to reimburse employees for using their personal vehicles for business-related travel. These rates are designed to cover costs associated with operating a vehicle, such as fuel, maintenance, and depreciation.
Understanding mileage rates is crucial for Canadian businesses to ensure compliance with CRA guidelines while effectively managing corporate travel expenses. By applying the correct rates and following proper reimbursement procedures, companies can:
- Offer fair compensation to employees for their work-related vehicle use
- Enhance financial transparency and maintain accurate records
- Boost employee satisfaction by demonstrating a commitment to fair reimbursement practices
Mileage reimbursement is designed to cover various expenses associated with operating a vehicle for business purposes, including:
- Fuel costs
- Regular maintenance and repairs
- Depreciation of the vehicle’s value over time
By aligning your reimbursement practices with CRA guidelines, you can ensure that your employees are fairly compensated for these expenses while keeping your company compliant with tax regulations.
To calculate mileage reimbursement for your employees, multiply the total number of business kilometres driven by the applicable CRA rate. For example, if an employee drove 6,000 km for work-related purposes in 2025, their reimbursement would be calculated as follows:
- (5,000 km × $0.72) + (1,000 km × $0.66) = $4,260
Ensure that your employees maintain accurate records of their mileage, including dates, destinations and purpose of travel, to maintain compliance with CRA guidelines.
To maintain compliance with CRA mileage guidelines, Canadian companies should:
- Implement a robust system for tracking and recording business mileage
- Apply the correct CRA rates when calculating reimbursements
- Regularly review CRA updates and adjust their policies accordingly
- Maintain detailed records of all mileage claims and reimbursements for potential audits
By following these best practices, you can ensure that your company remains compliant with tax-free vehicle expense regulations while effectively managing your corporate travel expenses.
Make expense management even easier
Streamline your business spending with automation tools built right into Float.