It’s Cheaper to Drive in Alberta!

CRA recently published the prescribed allowable mileage rates for simplified travel deductions and determined that it was cheaper to drive in Alberta in 2014 than the previous year. 

In fact, per kilometre mileage rates for Alberta are the same rate they were in 2005.

The simplified method of calculating allowable travel expenses is limited to specific types of deductions eliminating the need for the retention of gas receipts.

Medical Expenses

A taxpayer may use the simplified method to claim travel expenses for medical purposes for the patient and one attendant who must travel 40 km (one way) or more to receive medical services that are not available in their community.  If the distance is greater than 80 km then hotel and meal costs may also be eligible as a medical expense. 

Moving Expenses

Travel expenses may also be calculated using the per kilometre basis rather than claiming the actual amount spent. This method does not require receipts to be kept for travel expenses, only a record of the distance travelled during the move. The rate is calculated based on the province in which the move began.  Meals on route may also be charged at a flat rate per meal ($17 currently) with a maximum of three meals per day (total $51).

Northern Residents Deduction

The simplified method of calculating travel is available to individuals eligible for the Northern Residents Deduction.  The simplified mileage rate can be used to calculate the travel benefits provided by an employer to an employee for a maximum of two trips per year.

Overall three provinces; Alberta, Quebec and British Columbia; saw their rates decline, PEI remained the same and everyone else saw their rates increase.  Check the rates (and history) for your province.

Allowable Rate (cents/kilometre)