Canada: Increased automobile allowance limits, personal use in 2022

Two cent increase to the prescribed rates used to compute certain employee taxable benefits for 2022

Personal use in 2022

The Department of Finance announced a $0.02* (two cent) increase to the prescribed rates used to compute certain employee taxable benefits for 2022.

  • The rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers increased to 29 cents per kilometer (from 27 cents per kilometer), as of 1 January 2022.
  • The rate used to determine the taxable benefit of an employee who is employed principally in selling or leasing vehicles also increased to 26 cents per kilometer (from 24 cents per kilometer) for 2022.

Most other limits and rates that applied in 2021 have increased for 2022.

Read a January 2022 report [PDF 345 KB] prepared by the KPMG member firm in Canada

*$=Canadian dollar

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.