The limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes in the provinces will increase by one cent to 73 cents per kilometre for the first 5,000 kilometres driven, and to 67 cents for each additional kilometre.
The rates for the territories are traditionally set 4 cents higher and they will also increase by one cent to 77 cents per kilometre for the first 5,000 kilometres driven, and to 71 cents for each additional kilometre.
Complete details are available on the Canada Revenue Agency website at
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/automobile/automobile-motor-vehicle-allowances.html