The Department of Finance announced that there is a $0.01 (one cent) increase to the income tax deduction limits on tax-exempt allowances paid by employers to employees who use their personal vehicles for business purposes in 2020.
The 2020 limits are as follows:
For the Northwest Territories, Nunavut, and Yukon, the tax-exempt allowances are increased by four cents. As a result, the tax-exempt allowances for these three territories are now $0.63 for the first 5,000 kilometres driven and $0.57 for each additional kilometre.
The following limits remain unchanged from the 2019 amounts:
Read a January 2020 report [PDF 187 KB] prepared by the KPMG member firm in Canada
$ = Canadian dollar
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