A Canadian Mileage Reimbursement Form is a structured document used by employees, contractors, and volunteers to claim reimbursement for business use of a personal vehicle. The form records the date, destination, purpose, and total kilometres of each business trip, calculates the reimbursement amount using the Canada Revenue Agency (CRA) prescribed kilometric rates, and provides for supervisor approval and certification of the claim's accuracy.

The CRA publishes prescribed kilometric rates annually under the Income Tax Act (R.S.C. 1985, c. 1 (5th Supp.)). For 2026, the rates are $0.73 per kilometre for the first 5,000 business kilometres driven in a taxation year and $0.67 per kilometre for each additional kilometre. For travel in the Yukon, Northwest Territories, and Nunavut, the rates are higher at $0.77 per kilometre for the first 5,000 km and $0.71 per kilometre thereafter. These rates are intended to cover all vehicle operating costs including fuel, insurance, maintenance, depreciation, and licence and registration fees.

Under paragraph 6(1)(b) of the Income Tax Act, an automobile allowance paid to an employee is not included in the employee's income (and is therefore not a taxable benefit) if three conditions are met: the allowance is based solely on the number of business kilometres driven, the allowance is paid at a reasonable per-kilometre rate, and the employee has not been reimbursed for the same expenses. The CRA considers its published kilometric rates to be reasonable. If any of these conditions is not met, the entire allowance is considered a taxable benefit and must be reported on the employee's T4 slip. Employers who reimburse at a rate that exceeds the CRA rate should be aware that the excess may be treated as a taxable benefit.

The mileage reimbursement form serves as the essential supporting documentation for both the employer and the employee. The CRA requires that a detailed mileage log be maintained to substantiate the business use of a personal vehicle. The form should be completed promptly after each business trip and submitted to the employer with any supporting receipts for tolls, parking, and other incidental expenses. Employers must retain these records for at least six years after the end of the taxation year, as required by subsection 230(4) of the Income Tax Act.

A Canadian Mileage Reimbursement Form is needed whenever an employee, contractor, or volunteer uses their personal vehicle for business travel and seeks reimbursement from the employer or organization. This includes travel to client sites, satellite offices, meetings, conferences, training sessions, or any other business-related destination that is not the employee's regular workplace. The form is not used for commuting between the employee's home and regular workplace, which is considered personal travel under the Income Tax Act.

The form is particularly important for organizations that pay a per-kilometre automobile allowance to employees. To ensure the allowance qualifies as a non-taxable benefit under paragraph 6(1)(b) of the Income Tax Act, the employer must be able to demonstrate that the allowance was based solely on business kilometres driven and was paid at a reasonable rate. The mileage reimbursement form provides the documentary evidence needed to satisfy these requirements. Without adequate documentation, the CRA may reassess the employer and include the entire allowance in the employee's income as a taxable benefit.

The form is also needed by employees who are required to use their personal vehicle for employment duties and wish to claim employment expenses on their personal income tax return using Form T2200 (Declaration of Conditions of Employment). If the employee receives a per-kilometre allowance that is included in income (because it is unreasonable or not based solely on business kilometres), the employee can deduct actual vehicle expenses proportional to the business use of the vehicle. The mileage reimbursement form provides the kilometre records needed to calculate the business-use percentage.

Volunteers and charitable organizations also use mileage reimbursement forms. Under the Income Tax Act, registered charities and qualified donees may reimburse volunteers for vehicle expenses incurred while performing volunteer duties. The CRA kilometric rates apply equally to volunteer mileage reimbursement. The form provides a structured record for the organization's accounting and audit purposes.

A compliant Canadian Mileage Reimbursement Form must include the claimant's full legal name, address, and contact information. The form must identify the employer or organization that will process the reimbursement, including the organization's name, address, and contact details. This information is necessary for the organization's accounting records and for the CRA in the event of an audit.

The trip details section must record the date of each business trip, the destination address, and the business purpose of the travel. The CRA requires that the purpose be specific and business-related, not a generic description. The total kilometres driven for each trip must be recorded, preferably with starting and ending odometer readings. The per-kilometre rate used for the calculation must be stated, whether it is the CRA prescribed kilometric rate or an employer-approved rate. The total reimbursement amount is calculated as the total kilometres multiplied by the applicable rate, in Canadian dollars (CAD).

Additional expenses such as toll charges, parking fees, and ferry charges may be claimed separately and should be supported by receipts. These expenses are reimbursed at actual cost and are not subject to the per-kilometre rate. The vehicle used for business travel should be identified by year, make, model, and licence plate number, particularly if the employee uses multiple vehicles or if the organization requires vehicle identification for insurance or liability purposes.

The form must include a certification clause in which the claimant affirms that the mileage and expenses were incurred for legitimate business purposes and that the information is accurate and complete. A supervisor approval section provides for the authorizing manager's name, title, signature, and date, confirming that the claim has been reviewed and approved for payment. The form should reference the CRA prescribed kilometric rates and the applicable provisions of the Income Tax Act. The governing province should be identified for provincial tax and employment standards purposes.