How to use Float’s Canadian per diem calculator
Understand how much spend to allow for a specific period of time within a specific province to make reporting your travel fast, simple, and hassle-free! This spend can happen on Float cards, personal cards or anywhere else!
Input dates
Select the start and end dates of your trip.
Enter location
Choose the province and optionally enter the city.
View results
See your travel allowance based on CRA regulations.
Make per diem reimbursement fast, simple and hassle-free. Try it below!
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Per diem basics
What is a per diem rate?
A per diem rate is a fixed daily allowance paid by employers to cover employees’ necessary business travel expenses, such as meals, lodging, and incidentals. Per diem rates are designed to simplify the reimbursement process and eliminate the need for employees to submit detailed expense reports. The Canada Revenue Agency (CRA) allows employers to use per diem rates for tax purposes, provided they meet certain criteria.
Advantages of using per diem rates
- Simplified expense reimbursement: Per diem rates streamline the process for both employers and employees, reducing administrative burden by eliminating the need for detailed expense tracking and reporting.
- Clear travel allowance: Employees have a clear understanding of their daily travel allowance, helping them budget accordingly. This also allows employers to better control and predict travel costs.
CRA guidelines for per diem rates
Reasonable amount
The CRA considers a per diem rate to be reasonable if it is based on the federal government's meal and vehicle rates, which are reviewed every six months. Effective October 2025, the CRA's meal allowance total is $113.50 per day for travel within Canada and the continental USA (taxes included). When per diem rates are considered reasonable by the CRA, they are non-taxable benefits for employees.
Tax implications
When per diem rates are considered reasonable by the CRA, they are non-taxable benefits for employees. However, if the per diem rate exceeds the reasonable amount, the excess portion is taxable and must be included in the employee’s income.
Implementing a per diem policy
To successfully implement a per diem policy, develop a clear, written policy outlining the per diem rates, eligibility criteria, and reimbursement process. Communicate the policy to all employees and provide training as needed. Regularly review and update the policy to ensure compliance with CRA guidelines and industry best practices. Consider using Float’s expense management tools to help streamline the per diem tracking and reimbursement process.
Calculating per diem allowances
Use a reliable per diem calculator to determine the appropriate daily allowance for each employee based on their destination and travel duration. Ensure that the calculated per diem rates align with your company’s policy and the CRA’s reasonable allowance guidelines. Keep accurate records of per diem allowances paid to each employee for tax purposes and potential audits.
Optimizing business travel with per diems
Encourage employees to make cost-effective travel choices, such as staying at budget-friendly hotels or booking flights in advance, to maximize the value of their per diem allowance. Regularly assess your company’s travel patterns and expenses to identify opportunities for cost savings and policy improvements. Consider signing up for Float to provide more comprehensive expense management features that better manage and optimize your business travel costs.
By implementing a well-designed per diem policy and utilizing the right tools, your Canadian business can streamline expense management and optimize travel costs. We’re here to help you navigate the complexities of business travel expenses and ensure compliance with CRA guidelines.
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