Various automobile deductions and taxable benefit rates are limited to amounts prescribed by the Department of Finance annually.
On December 18, 2023, the 2024 limits were announced as follows:
– The limit on the deduction for non-taxable allowances paid by an employer to an employee using a personal vehicle for business purposes will increase in 2024 by 2 cents to 70 cents/km for the first 5,000 km driven and to 64 cents for each additional km. For Yukon, the Northwest Territories and Nunavut, the tax-exempt allowance will continue to be 4 cents/km higher, which is 74 cents for the first 5,000 km driven and 68 cents for each additional km.
– The ceiling on the capital cost for CCA of most passenger vehicles will increase to $37,000 from $36,000, and the limit for zero-emission passenger vehicles will remain at $61,000.
– The limit on leasing costs will increase to $1,050/month (from $950/month) for new leases entered into on or after January 1, 2024.
– The maximum allowable interest will increase to $350/month (from $300/month) for new loans entered into on or after January 1, 2024.
– The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers will remain at 33 cents/km. For taxpayers employed principally in selling or leasing automobiles, the rate will remain at 30 cents/km.

Action: Compare automobile allowances and other payments made against the limits to determine whether expenditures that do not reduce tax are being made.

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