Canada MOF Announces 2025 Automobile Fringe Benefit Rates

The Canadian Department of Finance Dec. 30, 2024, announced automobile fringe benefit rates, for employees using automobiles for business purposes, effective Jan. 1, 2025. The announcement includes increases in: 1) capital cost allowance (CCA) ceilings for Class 10.1 new and used passenger vehicles, to C$38,000 (US$26,417) from C$37,000 (US$25,721) before tax, if acquired on or after Jan. 1, 2025; 2) deductible leasing costs, to C$1,100 (US$764) from C$1,050 (US$729) per month before tax, for new leases entered into on or after Jan. 1, 2025; 3) deduction limits of employer-paid tax-exempt allowances for employees using their personal vehicle for business in ...