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  • Conner Lantz
    Keymaster
    Post count: 4836

    Can someone please advise me whether there is there a law that states a particular rate for the reimbursement of mileage to an employee by their organization for the use of their personal vehicle for official work? I am based in Ontario, Canada
    Thank you!

    Conner Lantz
    Keymaster
    Post count: 4836

    No law requires or sets a rate for the reimbursement of personal vehicle mileage expenses. There is no minimum or maximum vehicle reimbursement rate set by Ontario employment standards or by Canadian regulations.
    Nevertheless, the Canada Revenue Agency posts an annual per-kilometre rate guideline that many employers follow in setting the rate for reimbursing their employees and contractors for vehicle mileage.
    Still, the CRA rate is tax law, not employment law, and it represents the maximum tax deduction an employee can make for his or her car allowance. It does not set the minimum amount an employer must pay an employee/contractor for mileage. However, for practical reasons, many employers match this rate to pay their employees/contractors for vehicle mileage, although, as described above, they don’t have to. Employers are free to go above or below the CRA guideline. After all, it is just a tax guideline – it is not binding on employment relationships.
    The current CRA Automobile Allowance Rate is located here.

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