Free Gas Mileage Calculator for Canadian Businesses
Easily Track and Maximize Your Business Travel Deductions with Our Free Mileage Calculator
Reimbursement Amount
$XXXX.XX
- $X.XX per km (first 5K km)
- $X.XX per km (additional KM)
Reimbursement Amount
$XXXX.XX
- $X.XX per km
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Canadian Gas Mileage Reimbursement Calculator
How to use it
- Select Your Method — Choose between CRA standard rates or enter your own custom reimbursement rate.
- Fill In Your Info — Select the tax year and province or territory, then enter the total business kilometers driven.
- Get Your Result — Hit “Calculate Reimbursement” to instantly see your total mileage reimbursement.
How to calculate Gas Mileage Reimbursement
To calculate your mileage reimbursement, multiply the total distance driven for business purposes by the current CRA (Canada Revenue Agency) mileage rate. To ensure your calculations are accurate and CRA-compliant, it’s important to keep a detailed log of all kilometers traveled for work-related activities.
Understanding CRA mileage rates and reimbursement
stay informed about the latest CRA mileage rates to ensure accurate reimbursements. For the 2025 tax year, the rates are as follows:
- 72 cents per kilometre for the first 5,000 kilometres driven
- 66 cents per kilometre for each additional kilometre
Additional rates may apply in the Territories, so it’s important to account for those when calculating kilometre reimbursements.
To determine the correct reimbursement amount, multiply the total number of business kilometres driven by the applicable CRA mileage rate. Double-check your calculations to ensure they follow CRA guidelines and that you are applying the correct rate based on the total distance traveled.
Review the CRA’s mileage rate updates regularly and adjust your company’s reimbursement policies as needed. Keep thorough records of all mileage claims and reimbursements to stay compliant and be ready in case of an audit.
Learn more about Gas mileage rates
What are gas mileage rates and why are they important?
Mileage rates are per-kilometre amounts set by the Canada Revenue Agency (CRA) to reimburse employees who use their personal vehicles for business-related travel. These rates help cover vehicle expenses such as fuel, maintenance, insurance, and depreciation.
For Canadian businesses, understanding and applying CRA mileage rates correctly is essential for compliance and accurate travel expense management. Using a reliable gas mileage calculator in Canada can streamline this process and ensure proper reimbursement.
By following CRA guidelines and using the correct mileage rates, businesses can:
- Provide fair compensation for employees using personal vehicles for work
- Improve financial transparency and maintain clear, audit-ready records
- Increase employee satisfaction by showing a commitment to fair and accurate reimbursements
What expenses are covered under Gas mileage reimbursement and how can they be calculated?
To calculate mileage reimbursement for your employees, multiply the total number of business kilometres driven by the applicable CRA rate. For example, if an employee drove 6,000 kilometres for work in 2025, the calculation would look like this:
(5,000 km × $0.72) + (1,000 km × $0.66) = $4,260
Using a reliable gas mileage calculator in Canada can help automate this process and reduce errors. It's important that employees keep accurate records of their travel, including dates, destinations, and the purpose of each trip, to stay compliant with CRA mileage reimbursement guidelines.
To ensure compliance with CRA mileage rules and manage travel costs effectively, Canadian businesses should:
- Use a robust system to track and log business mileage
- Apply the correct CRA mileage rates when calculating reimbursements
- Stay current with CRA updates and revise internal policies as needed
- Keep detailed records of all mileage claims and reimbursements to support audit readiness
By following these best practices and using a trusted CRA-compliant gas mileage calculator, your company can maintain compliance, offer fair employee compensation, and better manage corporate travel expenses.
How can Canadian businesses ensure compliance with CRA gas mileage guidelines?
1. Track mileage accurately
Use a reliable system to track and record all business-related mileage
2. Review CRA rates
Ensure the correct CRA rates are applied when calculating reimbursements
3. Get the best rate
Stay up to date with CRA changes and keep comprehensive records of all mileage claims and reimbursements to support audit readiness
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