2018-0761301M4 Method used to establish mileage rates

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Principal Issues: What methodology is used to establish the mileage or kilometric rate for travel, for the purpose of the medical expense tax credit?

Position: The CRA uses the kilometric rates according to the Treasury Board of Canada Secretariat guidelines. The latter are based on the annual kilometric rates set by the National Joint Council of the Public Service of Canada.

Reasons: See response.

Author: El-Kadi, Randa

Section: 118.2(2)(g); 118.2(4)

July 12, 2018



The office of the Right Honourable Justin Trudeau, Prime Minister of Canada, sent me a copy of your correspondence about the kilometric rates the Canada Revenue Agency (CRA) uses to calculate vehicle expenses for purposes of medical travel. Thank you for your understanding regarding the delay of this response.

The CRA uses these kilometric rates according to guidelines from the Treasury Board of Canada Secretariat (TBS). These guidelines are based on the rates set by the National Joint Council (NJC) of the Public Service of Canada. The CRA has always accepted the NJC rates as fair and reasonable. The NJC determines the rates by analyzing new vehicle prices, depreciation and financing rates, current fuel prices, insurance premium rates, and operating costs in each province or territory. When these costs increase or decrease, the kilometric rates change accordingly.

You can find more information about the method the NJC uses to determine kilometric rates at njc-cnm.gc.ca/doc.php?did=117&lang=eng#tc-tm_4_1. This webpage includes a link to the kilometric rates for each Canadian province and territory.

Since changes to the kilometric rates are the responsibility of the TBS, I am sending a copy of our correspondence to the Honourable Scott Brison, President of the TBS, for his consideration.

I appreciate the opportunity to respond to your concerns and trust the information I have provided is helpful.



The Honourable Diane Lebouthillier


c.c.: The Honourable Scott Brison, P.C., M.P.
        President of the Treasury Board


Randa El-Kadi
(613) 670-9054

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© Her Majesty the Queen in Right of Canada, 2018

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