Fact sheet
Note
The rates for vehicle expenses listed below do not apply to the 2001 tax year. To get the rates for 2001, click here.
Travel expenses for northern residents deductions, medical and moving expenses
For 1999 and subsequent years, individuals have the option of choosing a detailed or simplified method to calculate certain travel expenses for moving and medical expenses, and for northern residents deductions (NORDs). All other travel expenses have to be supported by receipts.
Meal expenses
If individuals choose the detailed method to calculate meal expenses, they have to keep their receipts. If they choose the simplified method, they may claim a flat rate of $11 a meal, to a maximum of $33 per day, per person, without receipts.
Vehicle expenses
If individuals choose the detailed method to calculate vehicle expenses, they have to keep receipts and records for the vehicle expenses they incurred during the tax year for moving expenses and NORDs, or the 12-month period they choose for medical expenses.
- Vehicle expenses include operating and ownership expenses.
- Operating expenses are fuel, oil, tires, licence fees, insurance, maintenance, and repairs.
- Ownership expenses are depreciation, provincial tax, and finance charges.
Individuals also have to keep track of the number of kilometres they drove in that time period, as well as the number of kilometres they drove specifically for the purpose of moving or medical expenses, or for the northern residents deductions. Their claim for vehicle expenses is the percentage of their total vehicle expenses that relate to the kilometres driven for moving or medical expenses, or for NORDs.
For example, if an individual drove 10,000 km during the year, and half of that was related to his or her move, he or she can claim half of the total vehicle expenses on his or her tax return.
If an individual chooses the simplified method of calculating vehicle expenses, he or she does not need to keep receipts. Instead, the individual must keep track of the number of kilometres driven during the tax year for his or her trips relating to NORDs and moving expenses, or the 12-month period he or she chooses for medical expenses. To determine the amount the individual can claim for vehicle expenses, multiply the number of kilometres by the cents/km rate from the chart below for the province or territory from which the travel begins.
| Saskatchewan |
34.5 |
| Alberta |
35.0 |
| Prince Edward Island |
36.0 |
| Nova Scotia |
36.5 |
| Manitoba, New Brunswick |
37.0 |
| British Columbia |
37.5 |
| Ontario |
38.0 |
| Newfoundland |
38.5 |
| Quebec |
41.0 |
| Northwest Territories, Yukon, and Nunavut |
42.5 |
For example, if an individual moved from Ottawa to Montréal, he or she would have travelled about 200 km. The vehicle expense claim would be 200 km multiplied by the rate of 38 cents for Ontario, for a total of $76.
For more information, visit the Canada Customs and Revenue Agency Web site at: www.cra-arc.gc.ca or call your tax services office. You can find the telephone number listed in the government section of your telephone book.
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