The 2022 automobiles expense deduction limits and prescribed rates for determining the taxable benefit on automobile operating expenses are as follows:
- The ceiling on the capital cost of passenger vehicles for capital cost allowance purposes is $34,000 (plus applicable federal and provincial sales taxes). Eligible zero-emission vehicles have a $59,000 limit, plus sales tax.
- The limit on deductible leased costs is $900 per month (plus applicable federal and provincial sales taxes).
- The limit on tax-exempt allowances paid by employers to employees is $0.61 per kilometer for the first 5,000 kilometers driven and $0.55 for additional kilometers (for Yukon, the Northwest Territories and Nunavut, $0.66 per kilometer for the first 5,000 kilometers driven and $0.60 for additional kilometers).
- The maximum allowable interest deductions for amounts borrowed to purchase an automobile is $300 per month.
- The general prescribed rate used to determine taxable benefit relating to the personal use of automobile paid by employers is $0.29 per kilometer (for taxpayers employed principally in selling or leasing automobiles, $0.26 per kilometer).