Automobile Taxable Benefit Calculator

Availability triggers the standby charge, not how much the vehicle actually gets driven. Most owner-managers assume otherwise, and most of them are wrong.

Reading This Tool

How To Use This Calculator

Enter the vehicle's cost, how many months it was available, and the personal versus total kilometres driven.

The standby charge is 2% of the vehicle's cost per month available, reduced only if business use exceeds 50% and personal driving stays under 1,667 km per month available. The operating expense benefit is a flat per-kilometre rate on personal driving, or half the standby charge if elected in writing before year-end.

Your Inputs

Vehicle Cost (Before Tax) $45,000

Months Available To The Employee 12

Personal Kilometres Driven 8,000 km

Total Kilometres Driven (Business + Personal) 23,000 km

Personal Operating Costs Reimbursed By Employee $0

Reimbursements only reduce the operating benefit if paid to the employer within 45 days after year-end. The 2026 operating benefit rate is 34 cents per personal kilometre, or 31 cents for employees principally employed in selling or leasing automobiles.

Total Taxable Benefit

Total Taxable Benefit This Year

Standby Charge

Operating Expense Benefit

Half-Standby Alternative, If Elected

Standby Charge vs. Operating Benefit

This models a purchased vehicle; a leased vehicle uses two-thirds of the lease payment instead of 2% of cost for the standby charge. Corporate deduction and personal taxable benefit are two separate questions, the corporation may still deduct these costs even where the employee faces a real taxable benefit.

Deciding whether to put the vehicle in the company at all?

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