Automobile Deduction Limits


Item
2021 2020 2019

Non-taxable allowance for employee-owned automobiles1

     

First 5,000 of employment related km

$0.59/km $0.59/km $0.58/km

Additional employment related km

$0.53/km $0.53/km $0.52/km
Yukon, NWT & Nunavut      

First 5,000 of employment related km

$0.63/km $0.63/km $0.62/km

Additional employment related km

$0.57/km $0.57/km $0.56/km
       

Taxable Benefits

     

Employer paid operating costs for personal km

$0.27/km $0.28/km $0.28/km

Employees selling or leasing automobiles for personal km

$0.24/km $0.25/km $0.25/km

Automobile Standby Charge

     

Employer-owned automobiles

2% * cost of vehicle x days available / 30

Employer leased automobiles

 2/3 x monthly lease cost x days available / 30

Reduction2

Above x Personal  km/1,667 x months auto is available
       

Capital Cost and Deduction Limits

     

Owned automobiles - Non Zero Emission

$30,000 + taxes for purchases
Owned automobiles - Zero Emission $55,000 + taxes for purchases

Interest on auto loan

$300/month for purchases

Leased automobiles 3

$800/month + taxes for leases

1 - Northern territories subject to limits set at 4 cents higher
2 - Standby charge reduction only available if:

  • employer requires the employee to use the car to carry out employment duties
  • business use is greater than 50%
  • personal km average less than 1,667 per month

3 - Lease maximums are adjusted by formula by the MRSP of the vehicle and therefore may be less than the amount stated above

In light of the impact COVID-19 lockdowns and public health measures have had on how employees use their employer-provided vehicles, the government is also proposing temporary adjustments to the automobile standby charge. For the 2020 and 2021 taxation year, it is proposed that employees be allowed to use their 2019 automobile usage to determine eligibility for the reduced standby charge. Only employees with an automobile provided by the same employer as in 2019 would be eligible for this option.