The Canada Revenue Agency (CRA) has updated the Automobile Allowance Rates for 2026. Accordingly, Canada Post is updating the Vehicle Expense Kilometre Reimbursement Rates for RSMCs to the maximum permitted by distance and geographical region.

In accordance with clause 33.01(b), changes to the Canada Revenue Agency’s automobile allowance rates become applicable sixty (60) days following the Canada Revenue Agency’s effective change date.

Please note, for 2026, the Automobile Allowance Rates are:

73¢ per kilometre for the first 5,000 kilometres driven67¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.

This represents an increase of 2¢ per kilometre.

The new rates are effective as of January 1, 2026. Payments at the new rates will be made during pay period 4 (PP04), starting on February 26, 2026.

Calculation Of Your Vehicle Expenses

To determine whether you are receiving the appropriate reimbursement of your vehicle expenses, multiply the number of kilometres driven per day by 250 days (working days per year).

Example:
45 km per day X 250 days = 11,250 km per year
11,250 km – 5,000 km = 6,250 km
5,000 km X 73¢ = $3,650 (for the first 5,000 km)
6,250 km x 67¢ = $4,187.50 (for kilometres driven after that).

Therefore, the reimbursement of your vehicle expenses should be $7837.50 per year.       

In Solidarity,