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Are you a business owner, self-employed professional or just someone who uses their personal vehicle for work-related travel in Ontario? Knowing the Ontario mileage rate for 2025 can help you stay compliant, manage travel expenses accurately and ensure you’re maximizing your deductions. Whether you’re reimbursing employees or making a personal claim for medical travel, moving expenses or northern deductions, this guide breaks down everything you need to know.
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The CRA mileage reimbursement rate for Ontario is used to cover expenses when employees or individuals use their own vehicle for business or eligible travel purposes. This includes gas, maintenance, insurance, and depreciation.
Here are the current CRA mileage rates for 2025:
| Distance Driven | Rate (cents/km) |
|---|---|
|
First 5,000 kilometres |
72¢
|
|
Each additional kilometre |
66¢
|
These non-taxable mileage rates apply across all provinces, including Ontario, when reimbursing employees or claiming personal travel expenses on your return.
For government or federal employees—and for organizations aligning with federal travel policies—the Ontario government mileage rate for 2025 is:
| Province | CRA Kilometric Rate |
|---|---|
|
Ontario |
63¢ per kilometre
|
This average mileage rate in Ontario can be used as a reference for setting internal reimbursement policies, especially for publicly funded organizations.
When it comes to claiming mileage on your tax return (for moving, medical, or northern deductions), you can choose one of two methods:
| Eligible Purpose | Rate (Ontario 2025) |
|---|---|
|
Medical or moving travel
|
63¢ per kilometre
|
|
Northern residents deduction travel |
63¢ per kilometre
|
This is the easiest method for calculating mileage reimbursement in Ontario when claiming on your personal return.
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Example: If you drove 12,000 km in 2025 and 4,000 km were for medical appointments, you can claim 33.3% of your total vehicle expenses.
If you choose the detailed method for medical travel mileage reimbursement or other eligible deductions, CRA allows you to include:
Operating Expenses:
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Ownership Expenses:
You must also track the total number of kilometres driven in the year and the portion related to eligible travel.
When it comes to claiming mileage on your tax return (for moving, medical, or northern deductions), you can choose one of two methods:
If you choose the detailed method for medical travel mileage reimbursement or other eligible deductions, CRA allows you to include:
Operating Expenses:
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Ownership Expenses:
You must also track the total number of kilometres driven in the year and the portion related to eligible travel.
If you’re driving a company car for personal use (commuting, errands), it’s considered a taxable benefit.
Here are the 2025 CRA operating cost benefit rates for Ontario:
| Use Type | Rate (cents/km) |
|---|---|
|
General Use |
34¢ per kilometre
|
|
Sales/Leasing |
31¢ per kilometre
|
If employees reimburse the employer for personal use at these rates, the benefit may be reduced or eliminated.
Businesses in Ontario also need to be aware of CRA’s updated limits for leasing, financing, and purchasing vehicles:
| Deduction Type | 2025 Limit |
|---|---|
|
Capital cost (Class 10.1 vehicle) |
$38,000
|
|
Zero-emission vehicle (Class 54)
|
$61,000
|
|
Lease deduction limit
|
$1,100/month (before tax)
|
|
Loan interest deduction
|
$350/month
|
These are especially relevant for businesses tracking expenses or managing fleets.
Regardless of the method you use, keeping accurate records is key. CRA may ask for proof of kilometres, even with the simplified method.
A proper log should include:
This applies to all personal claims, from mileage rate for medical travel to moving and business trips.
The CRA mileage rate in Ontario for 2025 has increased slightly, reflecting the real costs of operating a vehicle. Whether you’re submitting a tax claim or reimbursing employees, understanding the current rates and deduction rules ensures accuracy, compliance, and better travel budgeting.
Inspired Travel Group supports Ontario businesses with end-to-end travel management—covering everything from policy guidance to reporting and approvals. If your team is always on the move, we’ll make sure your travel program runs like clockwork.
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