Canada Company Car Benefit Calculator
A company car in Canada creates a taxable benefit: a standby charge for having the car available, plus an operating benefit on your personal-use kilometres.
How to use it
- Enter the car's cost. The cost of the car including sales tax.
- Add personal-use km and months. Personal kilometres for the year and how many months the car was available.
- See the taxable benefit. PayGlance shows the standby charge, the operating benefit and the tax on the total.
FAQs
How is the Canadian automobile benefit calculated?
It's a standby charge - 2% of the car's cost for each month it's available to you - plus an operating benefit, a prescribed per-kilometre rate (34¢/km in 2026) on your personal-use kilometres. Both are added to your employment income.
Can the standby charge be reduced?
Yes. If your business use is more than 50% and your personal kilometres are below a set threshold, a reduced standby charge can apply. This calculator uses the standard 2% per month.
Is the benefit taxable?
Yes - the automobile benefit is taxable employment income and is reported on your T4. Confirm the exact figures with CRA.