Automobile deduction limit and expense benefit rates

[January 14, 2026]

[Reg.7305.1 to 7307
	2026	2025	2024	2023	2022	2021	2020	2019
CCA capital cost limit (zero-emission passenger vehicles)	$61,000 plus applicable federal and provincial sales taxes	$61,000 plus applicable federal and provincial sales taxes	$61,000 plus applicable federal and provincial sales taxes	$61,000 plus applicable federal and provincial sales taxes	$59,000 plus applicable federal and provincial sales taxes	$55,000 plus applicable federal and provincial sales taxes	$55,000 plus applicable federal and provincial sales taxes	$55,000 plus applicable federal and provincial sales taxes1
CCA capital cost limit (other passenger vehicles)	$39,000 plus applicable federal and provincial sales taxes	$38,000 plus applicable federal and provincial sales taxes	$37,000 plus applicable federal and provincial sales taxes	$36,000 plus applicable federal and provincial sales taxes	$34,000 plus applicable federal and provincial sales taxes	$30,000 plus applicable federal and provincial sales taxes	$30,000 plus applicable federal and provincial sales taxes	$30,000 plus applicable federal and provincial sales taxes
Maximum interest deduction on loans	$350/month	$350/month	$350/month	$300/month	$300/month	$300/month	$300/month	$300/month
Deductible leasing costs limit	$1,100 plus applicable federal and provincial sales taxes/month	$1,100 plus applicable federal and provincial sales taxes/month	$1,050 plus applicable federal and provincial sales taxes/month	$950 plus applicable federal and provincial sales taxes/month	$900 plus applicable federal and provincial sales taxes/month	$800 plus applicable federal and provincial sales taxes/month	$800 plus applicable federal and provincial sales taxes/month	$800 plus applicable federal and provincial sales taxes/month
Limit on tax-exempt employers' allowances
First 5,000 km
Provinces	73¢/km	72¢/km	70¢/km	68¢/km	61¢/km	59¢/km	59¢/km	58¢/km
Territories (Yukon, NWT, Nunavut)	77¢/km	76¢/km	74¢/km	72¢/km	65¢/km	63¢/km	63¢/km	62¢/km
Additional kilometres
Provinces	67¢/km	66¢/km	64¢/km	62¢/km	55¢/km	53¢/km	53¢/km	52¢/km
Territories (Yukon, NWT, Nunavut)	71¢/km	70¢/km	68¢/km	66¢/km	59¢/km	57¢/km	57¢/km	56¢/km
Operating expenses taxable benefit
persons employed principally in selling or leasing automobiles	31¢/km	31¢/km	30¢/km	30¢/km	26¢/km	24¢/km	25¢/km	25¢/km
other employees	34¢/km	34¢/km	33¢/km	33¢/km	29¢/km	27¢/km	28¢/km	28¢/km
Source: Ernst & Young Electronic Publishing Services Inc.

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