Canada MOF Announces 2026 Automobile Deduction Limits, Expense Benefit Rates for Businesses

The Canadian Department of Finance Jan. 14 announced the automobile deduction limits and expense benefit rates for businesses, from Jan. 1. The announcement includes: 1) an increase to C$39,000 (US$28,053), from C$38,000 (US$27,333), in the cap on capital cost allowances (CCAs) for qualifying vehicles acquired on or after Jan. 1; 2) increases to C$0.73 (US$0.53) per kilometer, from C$0.72 (US$0.52), in the maximum deduction for employer allowances paid for the first 5,000 kilometers that an employee uses their personal vehicle for work, and to C$0.67 (US$0.48) from C$0.66 (US$0.47) for each additional kilometer; 3) that deductible monthly leasing costs will ...