cra ontario travel expenses

How to claim Ontario's staycation tax credit on your tax return

People in Ontario who vacationed in the province last year can claim the trip on their upcoming tax returns, and here’s how to do it.

Introduced as a temporary, refundable personal income tax credit for 2022 , the Ontario Staycation Tax Credit can be used by families and individuals who went on a leisurely trip somewhere within the province.

Through this credit, Ontarians can claim 20 per cent of their eligible accommodation expenses between Jan. 1 and Dec. 31, 2022.

“If you travelled for work, that wouldn’t count,” H&R Block tax specialist, Yannick Lemay, previously told CTV News Toronto. “We are excluding costs for food, entertainment, gas, and all extra expenses, but anything that goes for accommodation for travel, you can claim.”

Those who are looking to apply for this credit should have the receipts from their accommodation stays, Lemay noted.

“It’s up to $1,000 [for an individual], and it’s a 20 per cent rate credit, so that means Ontarians can get up to $200 back.”

Families and couples can claim up to $2,000 and get a maximum credit of $400.

HOW CAN I CLAIM THE STAYCATION TAX CREDIT?

When it's time to file your Income Tax and Benefit Return for last year, keep your eyes peeled for form ON479 , which lists all of the refundable tax credits Ontarians can specifically claim.

"Many Ontario credits are calculated on this form, and then the total of credits calculated on this form goes onto the T1 returns on your federal tax return. It goes on line 47900," Lemay told CTV News Toronto Friday.

Ontario’s staycation tax credit can be found underneath the Ontario childcare access and relief from expenses (CARE) tax credit.

SO WHAT ELIGIBLE EXPENSES CAN I CLAIM?

Ontarians who stayed at a short-term accommodation for less than a month in province can claim the expenses through the credit – so long as it is a hotel, motel, resort, lodge, bed-and-breakfast, cottage, campground or vacation rental property.

The accommodation must have either been paid by you, or your spouse, partner, or eligible child.

All of the receipts from the eligible expenses must have the location, the date of stay, the name of who purchased the accommodations, and the cost. It should also have the amount of taxes you paid on the stay.

If all these conditions are met, Ontarians can claim the accommodation of one trip or multiple trips, and can be expensed up to $1,000 as an individual or $2,000 as a family.

WHAT CAN’T I CLAIM?

Vacations on boats, trains, or “other vehicles that can be self-propelled,” the province says , aren’t included with the tax credit. Timeshare agreements are also generally not included.

As for travel expenses, Ontarians cannot claim car rentals, fuel, flights, groceries, parking, or tickets purchased to visit location attractions. If the trip was also for school or work, it also cannot be claimed through the staycation tax credit.

Lastly, if the expenses were reimbursed – either by a friend or an employer – the stay cannot be claimed.

May 1 is the deadline for most Canadians to file their tax returns, with June 15 being the deadline for those who are self-employed. 

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Meal expenses can be deducted if your employer requires you to be away for at least 12 consecutive hours from the municipality/metropolitan area of your employer's location where you normally report for work.

Expenses of Railway Employees

Income tax act s. 8(1)(e).

The cost of meals and lodging, for which you have not been reimbursed, and are not entitled to be reimbursed, can be claimed if you meet one of the following two conditions:

How to Claim the Meals and Lodging Expenses

These expenses are claimed on the Canada Revenue Agency (CRA) form TL2 Claim for Meals and Lodging Expenses .

The meals and lodging costs will include GST/HST and any provincial retail sales tax paid.  You may be eligible for a refund of the GST/HST included in the costs.  See Employee and Partner GST/HST rebate on the GST/HST page.

Line 22900 (line 229 prior to 2019) employment expenses can be entered in the "other deductions" line of the Detailed Canadian Tax and RRSP Savings Calculator .

Canada Revenue Agency (CRA) Resources

Revised: March 22, 2024

Track mileage automatically

Medical travel in canada, in this article, cra rules on medical travel, medical travel if you travel more than 40 kilometres, medical travel over 80 kilometres in canada and abroad, cra medical travel rates 2023, medical travel rates 2022.

If you need to receive medical care, you may be able to deduct medical travel expenses for your medical mileage. The deductions can represent a big chunk of savings that you can claim at tax time. Here’s an overview of the rules for claiming medical travel from the CRA.

Firstly, you will need proof that you attended the medical service you needed. You can provide receipts for the services you’ve received or a document or letter signed by the provider of the medical service.

You cannot claim medical travel expenses if you travelled less than 40 kilometres in one direction to receive medical attention.

If you travelled more than 40, but less than 80 kilometres one way, you will be able to claim medical travel, and if you travelled more than 80 kilometres, you will be able to claim mileage, as well as accommodation, meal and parking costs.

You will also be able to claim travel expenses if you had to receive medical care outside of Canada.

If a medical practitioner certifies that you needed to be accompanied to receive medical attention, you will be able to claim the expenses of the attendant.

You will only be able to claim medical expenses for which you have not, and will not be reimbursed. If medical reimbursement has been included in your income (ergo, it will be taxed) you will be able to claim your medical travel expenses.

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You will be able to claim medical travel from the CRA such as bus, train and taxi fares, and vehicle mileage (if public transportation is not readily available) if you meet the following conditions:

• You were not able to receive the needed medical care near your home
• You took a reasonable and direct route
• It was reasonable for you to travel to a farther destination in order to receive medical attention.

You can claim medical mileage from the CRA by the detailed or simplified method.

If you use the detailed method, you need to keep all receipts of your medical travel expenses in order to claim them. You are able to deduct all qualified public transport fares, and if you travel with your vehicle - all costs of operating and owning it. These include fuel, oil, insurance, maintenance, depreciation and more.

With the simplified method, you will be able to claim a flat medical mileage rate and you won’t need to keep detailed records. However, the CRA may still ask you to provide documentation to support your medical mileage claim, so we recommend keeping a logbook of your medical travel.

If you need to travel more than 80 kilometres in order to receive medical care, you will be able to claim medical expenses such as bus, train and taxi fares, vehicle mileage (if public transportation is not readily available), meals, parking and accommodation if you meet the following conditions:

Again, you can claim medical travel and other expenses by the detailed or simplified method.

The detailed method of claiming medical travel and other expenses requires you to keep all receipts of your accrued expenses, such as for travel, parking (if applicable), meals and accommodation.

The simplified method lets you use a medical mileage rate and a per-meal rate for your expenses. Keep receipts of your accommodation costs, as there are no flat rates. While you don’t need to keep detailed receipts for medical travel and meals, the CRA may ask for documentation to support your mileage expenses claim.

If you claim medical travel with the flat per-kilometre medical rate, note that there are different rates for each Canadian territory.

Use the medical travel rates above to claim your medical travel expenses for 2023.

Are you claiming work-related mileage besides medical travel expenses? See our CRA mileage guide for all the rules on mileage reimbursement and deductions in Canada.

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How to claim CRA medical travel expenses for 2023

The costs involved with traveling to receive medical attention can be significant when you factor in accommodation, meals, and related expenses.

Find out how to claim your CRA medical travel expenses.

IMPORTANT: All claims related to Medical Travel require documentation provided by the practitioner confirming your attendance (whether this be a receipt for services, or a letter signed by your service provider).

Claiming Mileage

There are two ways to claim transportation costs as a CRA travel medical expense but you have to travel at least 40 kilometers one way to obtain medical service that were not available locally.

Example: for trips to and from the hospital, clinic, or doctor’s office.

Record the distance of travel, calculate your mileage according to the province in which you reside. (2021 rates):

Example: 55¢ x 160km = $88.00; you may claim $88.00 as an eligible medical expense.

Vehicle expenses may be claimed as CRA medical travel expenses by submitting gas receipts for the date(s) of travel/service.

Claiming Meals, Accommodations and Parking

In addition to the transportation costs above, you may claim reasonable expenses during your trip for medical attention provided that you had to travel more than 80 kilometers to attend your appointment. The travel costs of one accompanying individual are also allowable, if it is deemed necessary to have a companion.

Meals can be claimed one of two ways: 1. Meal receipts can be submitted for reasonable costs for the patient and one attendant (alcoholic beverages will not be reimbursed) OR 2. A flat rate of $23 per meal may be claimed for the patient and one attendant up to a maximum of $69 per day per person.

Accommodations

Receipts must be enclosed for any reasonable accommodation fees that are being claimed (ie: hotel receipt). Coverage applies to the accommodations ONLY; telephone, movie charges and the like are not eligible for reimbursement.

Receipts must be enclosed for any parking lot fees incurred. Please refer to the CRA medical travel expenses website for further details

A farmer lives in rural Alberta. There is not much in the way of medical services, vision care, or therapeutic care, such as physiotherapy, available in this small town.  Consequently, most treatment modalities require travelling to a center that has the appropriate medical facilities. The closest center is 44 kilometers from their home.

On a recent trip, they had chiropractic services performed and managed to visit the dentist for a check-up and teeth cleaning.  They were eligible to be reimbursed for the cost of the travel between their home and where the services took place.

In Alberta, that amounts to 53 cents a kilometer – so they were also able to claim $46.64 for travel expenses (there and back).  An alternative is to submit gas receipts for the dates of travel service.

On occasion, the same farmer requires a medical service that was only available on a timely basis in a major medical facility in the USA. This service was available in Canada but the wait time was over six months and the inconvenience to our customer as a result of their condition necessitated a faster remedy. They chose the US destination for the service.

As the travel distance now exceeded 80 Kilometers, in addition to the travel costs (economy class air fare), our customer can claim reimbursement for meals, accommodations, parking as well as the costs associated with a companion travelling with the patient if deemed necessary. An eligible travel expense claim of this magnitude represents a significant savings. 

How to write off 100% your medical expenses

Are you an incorporated business owner with no arm's length employees? Learn how to use a Health Spending Account to pay for your medical expenses through your corporation:

Do you own a corporation with arm's length employees? Discover a tax deductible health and dental plan that has no premiums:

Write off 100% of your medical expenses

Are you an incorporated business owner with no employees? Learn how to use a Health Spending Account to pay for your medical expenses through your corporation: 

Do you own a corporation with employees? Discover a tax deductible health and dental plan that has no premiums:

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Reimbursements and allowances for remote workers’ travel expenses

This content was originally published in the Canadian Tax Foundations newsletter: Canadian Tax Focus. Republished with permission.

Travel between an employee’s residence and a regular place of employment (RPE) has long been considered by the Canada Revenue Agency (CRA) to be personal travel and not part of the employee’s office or employment duties; therefore, any reimbursement or allowance relating to this travel is a taxable benefit. Conversely, where travel relating to a location other than an RPE is involved, such payments are non-taxable.

But what is an RPE in this era of remote work? A recent technical interpretation provides that a location used for a one-time, multi-day training session for remote workers is not an RPE for those workers (CRA document no. 2022-0936671I7, June 30, 2022); the CRA therefore concludes that the reimbursements and allowances for travelling there are generally non-taxable. However, the CRA notes one exception: allowances for meals (and presumably lodging) are non-taxable only if the rules for a special work site apply.

The CRA generally comments that whether a location is an RPE is a question of fact. CRA document no. 2012-0432671E5 (August 13, 2012) observes that a location could be an RPE even if the employee works there only once or twice a month, but the location might not be an RPE if the employee works there only once or for a few days during the year. In contrast, CRA document no. 2016-0643631E5 (August 17, 2020) declines to offer an opinion on a situation where an employee works at two different locations on alternating weeks. The 2022 technical interpretation takes more definitive positions, which are favourable to the employee.

The 2022 technical interpretation concerns an employer’s plans to hire new employees who reside far from the employer’s offices. The employees may work from home or designate one of the employer’s offices as their place of work, without requiring regular attendance or reserving an onsite workspace. The employer will also provide the necessary equipment for remote work. In addition, the employees will be required to attend a single three-day event during their employment contract for training and team-building activities. For employees who are required to attend, the employer will reimburse reasonable accommodation and transportation costs (bus, train) or provide a per-kilometre motor vehicle allowance. A meal allowance will also be provided.

The CRA concludes that the work location designated in the employment contract is not considered to be an RPE for the new employees. Therefore, reimbursements of travel expenses do not need to be included in their income under paragraph 6(1)(a). Also, reasonable per-kilometre allowances received by employees for the use of their motor vehicle for travel in the course of performing their duties will not be included in their income by virtue of subparagraph 6(1)(b)(vii.1).

The CRA notes that the situation for meal allowances is different. The exemption in subparagraph 6(1)(b)(vii) for reasonable allowances for travel expenses that are not for the use of a motor vehicle requires that the employee be travelling away from the municipality where the employer’s establishment is located. Since the employee’s home is not such an establishment, this condition is not satisfied. However, the CRA notes that the meal allowance could be non-taxable by virtue of subsection 6(6)—special work site. The CRA agrees that the work to be performed (that is, training and team-building activities) is considered temporary in nature and required as part of the employee’s duties. As such, the amounts paid for travel will not be required to be included in their income if all other conditions of the subsection are met. In particular, the employee must be away from home or at the special work site for at least 36 hours and cannot be expected to return home daily from the special work site because of the distance involved.

Similar reasoning would presumably apply to allowances for lodging expenses, although this issue was not discussed.

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Travel, Meal and Hospitality Expenses Directive

This directive sets out the rules and principles for the reimbursement and payment of travel, meal and hospitality expenses for government employees, appointees, contractors and other designated persons.

This directive has been posted to help you better understand the accountability rules within government and contains references to internal resources and applications used by Ontario government staff.

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1.0 purpose.

The purpose of this Directive is:

• to set out rules and principles for the reimbursement and payment of travel, meal and hospitality expenses to ensure fair and reasonable practices
• to provide a framework of accountability to guide the effective oversight of public resources for travel, meal and hospitality expenses
• to set the parameters for the public disclosure of information about expenses

1.1 Application and scope

This Directive sets out the rules for managing travel, meal and hospitality expenses for employees and appointees in:

• provincial agencies
• the Independent Electricity System Operator and Ontario Power Generation Inc. ("organizations")

The Directive also applies to consultants and contractors to ministries or provincial agencies/organizations.

The following definitions apply for the purpose of this Directive:

• Each of the above form part of what is considered government.
• Claimant refers to any person making a claim under the terms of this Directive.
• Approver refers to the person with the authority to make approvals under this Directive.
• Chief Executive Officer (CEO) refers to the head of operations at provincial agencies/organizations.
• Chair refers to the person appointed as the head of a provincial agency/organization and who is accountable to the minister, regardless of whether the title "chair" is used.
• OPS employees refers to employees of ministries or of provincial agencies that are Commission public bodies (that is, employees appointed under section 32 of the Public Service of Ontario Act, 2006 (PSOA) ).

This Directive replaces the Travel, Meal and Hospitality Expenses Directive dated January 1, 2017.

In the event of a conflict or inconsistency, this Directive prevails over a memorandum of understanding (MOU) between a minister and the head of a provincial agency/organization, particularly where the MOU contains less stringent requirements.

This Directive does not prevail over legislation or a collective agreement.

2.0 Principles and best practices

2.1 principles.

• Travel is approved only after other communications options are considered.
• Taxpayer dollars are used prudently and responsibly with a focus on accountability and transparency.
• Expenses for travel, meals and hospitality support government objectives.
• Plans for travel, meals, accommodation and hospitality are necessary and economical with due regard for health and safety.
• Legitimate authorized expenses incurred during the course of government business are reimbursed.

2.2 Best practices

• Prior approval to incur expenses is obtained.
• Corporate travel cards are used for authorized business travel and business-related expenses.
• The government’s vendors of record for travel-related services are used whenever possible.

3.0 Requirements – general

Requirements

• Alcohol cannot be claimed and will not be reimbursed as part of a travel or meal expense.
• Expenses for a group can only be claimed by the most senior person present. An individual cannot claim for expenses incurred by their approver (for example, a director cannot submit their Assistant Deputy Minister’s (ADM) claim for lunch even if they were at the same event).
• Good record-keeping practices must be maintained for verification and audit purposes.

Claimants must

• obtain all appropriate approvals before incurring expenses; if no prior approval was obtained, then a documented explanation must be submitted with the claim
• submit itemized receipts with all claims, except for meal expenses where meal allowances are used (see Section 6.0); credit card slips are insufficient
• In the absence of an itemized receipt, a documented explanation of why the receipt is unavailable and a description itemizing and confirming the expenses must be provided
• submit claims by the end of the quarter following the quarter in which the expense was incurred; if the claim is not submitted within the timeframe, a documented explanation is required
• submit claims for expenses before leaving positions with a ministry or provincial agency/organization

Approvers must

• provide approval only for expenses that were necessarily incurred in the performance of ministry or provincial agency/organization business
• provide approval only for claims that include all appropriate documentation (for example, itemized receipts)
• not approve their own expenses

Note that an overpayment to a claimant is considered to be a debt owing to the government and must be repaid.

4.0 Accountability framework

This Directive sets out the approval authority for incurring travel, meal and hospitality expenses. Approval authority for the reimbursement of expenses is based on the delegation of financial authority established for ministries and provincial agencies/organizations.

In some cases, the level of approval to incur a travel, meal or hospitality expense is identified and also whether the authority can be delegated. In other cases, a requirement is stated (for example, prior approval is required) without identifying an approval level. Where no approval level is identified, ministries and provincial agencies/organizations have the flexibility and discretion to establish their own level and to address possible delegation.

A deputy minister or CEO has the authority to establish additional rules regarding expenses. Any additional rules must be consistent with those laid out in this Directive and be necessary to meet specific operational needs. These rules do not replace any rules in this Directive, nor can they substitute higher rates of reimbursement for kilometres or meals. Additional rules must include the date of approval and must be accessible to everyone covered by the rules.

In addition, a deputy minister or CEO may modify the level of approval upward to a more senior level when authority is assigned to a manager/supervisor or contract manager.

4.1 Managerial discretion

For the purpose of this Directive, managerial discretion is the administrative authority to make decisions and choices with some degree of flexibility, while maintaining compliance with this Directive. There is no discretion to depart from the principles and requirements of this Directive.

All decisions should be taken very carefully. When exercising discretion, the rationale must be documented and filed with the claim.

Approvers are accountable for their decisions, which must be:

• based on good judgment and knowledge of the situation;
• exercised in appropriate circumstances; and
• compliant with the principles and requirements set out in this Directive.

For additional explanation on the exercise of managerial discretion, see the tip sheet on this topic .

When a situation arises, and discretion needs to be exercised, approvers should consider whether the request is:

• able to stand up to scrutiny by the auditors and members of the public;
• properly explained and documented;
• fair and equitable;
• reasonable; and
• appropriate

It is the responsibility of both the approver and the claimant to work out appropriate arrangements which would meet the test of being fair and equitable.

Only Treasury Board/Management Board of Cabinet (TB/MBC) can grant an exemption from all or part of this Directive. Ministries can apply for an exemption by bringing forward a business case to TB/MBC .

4.2 Public disclosure of expenses

Information about expenses must be posted on the appropriate public websites for the following:

• Deputy Ministers
• Associate Deputy Ministers
• Assistant Deputy Ministers
• Positions that carry the same degree of responsibility as those above
• Appointees (every person appointed to the provincial agency/organization by the Lieutenant Governor in Council, the Lieutenant Governor or a minister)
• CEOs (the most senior executive position, regardless of the title)
• Every member of senior management that reports directly to the CEO

The website for public disclosure of expense information for senior managers in ministries is on Ontario.ca . Provincial agencies/organizations can use their own websites for public disclosure.

Information about the procedures for posting on the public websites is found in the public disclosure support material . It includes information on:

• the types of expenses to be disclosed
• the details of each expense to be disclosed
• the frequency of posting

This Directive applies whenever travel is required. For the purpose of this Directive, travel does not refer to a person’s regular commute to work – expenses related to a person’s regular commute are not reimbursable.

5.1 When travel is a regular part of the job

There are some jobs where frequent travel is a requirement – part of the regular job duties.

On hiring, managers should ensure that staff are aware of the Directive and how it will affect the job. In these situations, approvers should meet with the employee to determine appropriate strategies (for example, pre-approval for frequent or regular travel, when meals can be reimbursed, use of vehicles, etc.).

Ministries and provincial agencies/organizations with jobs that require regular travel need to ensure that the Directive is utilized in a consistent manner so that managers and employees have a common understanding of how the Directive is applied.

5.2 When travel occurs occasionally

In the majority of positions in government, travel occurs irregularly on an as-needed basis; for example, to attend training, meetings, conferences or consultations; representing the government at an event; etc. In some cases, employees will be asked by managers to travel, and in others, the request may come from the employee.

5.3 Approvals for travel

The following charts identify the approval levels for travel footnote 1 [1] for everyone covered by this Directive. In many cases, the authority for approval may be delegated. See below (section 5.4) for information on delegation of authority.

Chart 1: Ministries

Chart 2: Provincial agencies whose employees are appointed under section 32 of the PSOA (Commission public bodies)

Chart 3: Other provincial agencies/organizations whose employees are not appointed under section 32 of the PSOA (includes the Independent Electricity System Operator and Ontario Power Generation Inc. )

Special status for international travel

For some provincial agencies/organizations, the requirement to travel internationally may be considered integral to their business. To ensure that the approvals process does not have an undue negative effect on the ability of the provincial agency/organization to conduct business, these provincial agencies/organizations may have the opportunity to request special status that would allow the chair to approve international travel instead of the positions listed in Chart 2 or 3.

Only TB/MBC can approve special status. Ministries can apply for special status on behalf of their provincial agencies by bringing forward a business case to TB/MBC . If TB/MBC approves special status, the chair may approve international travel or delegate approval authority to the CEO . A provincial agency/organization with special status must report regularly to their ministry, see Appendix A for reporting requirements.

Special status is approved for three years only. If special status continues to be required by the provincial agency/organization, the ministry must reapply to TB/MBC .

Should the business of a provincial agency/organization with special status change significantly during the three years, the ministry must reapply to TB/MBC for special status on behalf of the provincial agency/organization, if appropriate.

For more information on this process and for the approval levels within provincial agencies/ organizations once special status is granted, see Appendix A.

Approval for travel plans

5.4 delegation of authority for travel approvals.

The following chart provides direction on when and how the authority for approving travel requests can be delegated. If delegated, documentation and regular reporting to the position with approval authority is required.

5.5 Before travelling

• Where required, obtain prior documented approval for travel and use the appropriate forms . As a best practice, obtain prior documented approval for any travel. Note that prior approval is required even in situations where expenses are covered by a third party.
• Whenever possible, use the government’s designated vendor of record service providers . OPS employees can access these online booking tools through the Travel Gateway website .
• report any changes to your approver as soon as possible; and
• submit any changes through the travel management company or, if appropriate, an alternate travel agency.
• If you are a ministry employee, information about the rules and applications for the corporate travel card can be found at the Travel Card Services website .
• Others should check with their provincial agency/organization the availability of a corporate travel card.
• Secure travel documents, immunizations, and medications, as appropriate before you travel.
• Inform your approver of any arrangements (for example, accessibility, health, etc.) required during travel.
• choose the most cost-effective accommodation or method of travel;
• use the corporate travel management company to book your method of travel; and
• use the corporate travel card to pay for all travel expenses.
• Loyalty points can be redeemed at the user’s discretion; however, they cannot be redeemed for cash by using the points for business purposes and then submitting a claim for reimbursement.

Travelling outside Canada

If travelling outside Canada, in addition to the obligations set out elsewhere in this Directive, the following rules apply.

Requests for travel outside Canada must include:

• Request for Approval for Travel within Canada and the USA form ; or
• Request for Approval for International Travel form .
• acknowledgement that all appropriate approvals are in place;
• documented rationale demonstrating critical value of travel for government/ organizational priorities and interests, and how the travel will produce a benefit for the province;
• documentation showing detailed itemization of anticipated expenses (note that the lowest cost and most reasonable method of travel must be used); and
• confirmation that a security assessment for physical and cyber risk has been completed for the proposed travel destination.

When planning any travel, consider business continuity (for example, deciding whether senior management or people with specialized knowledge or expertise should travel together).

Security assessment

When travelling outside Canada, including the USA , a prior assessment of physical and cyber security is required. The assessment provides recommendations on safeguards against cyber and physical security threats for individuals travelling internationally.

Information on the requirement for the security assessment is included in the travel forms ( Request for Approval for International Travel form and Request for Travel Outside Ontario – Within Canada and the USA form). Provincial agencies/organizations that do not use the travel forms can contact [email protected] for information.

OPS employees can find information on insurance on Travel Gateway . Others should check with their provincial agency/organization for direction on insurance.

Medical and health insurance

Eligible OPS employees footnote 5 [5] are covered under the employer’s health insurance plans in the event of illness or injury. The cost of additional private medical and health insurance will not be reimbursed for travel within Canada.

Other provincial agency/organization employees, appointees and consultants should speak to their ministry or provincial agency/organization to assess their coverage for medical and health insurance within Canada.

You are responsible for arranging appropriate out-of-country medical insurance. For ministry employees, this cost is reimbursable and can be charged on the corporate travel card.

When purchasing out-of-country medical insurance, it is advised that you also purchase the option that allows for immediate payment of costs at the time of the incident (that is, up-front payment option).

Provincial agency/organization employees, appointees and consultants should speak to their ministry or provincial agency/organization about reimbursement for out-of-country insurance.

Travel accident insurance

Eligible OPS employees have basic insurance for accidental injury or accidental death.  Extra insurance may be arranged at the traveller’s expense – it will not be reimbursed.

Other provincial agency/organization employees, appointees and consultants should speak with their ministry or provincial agency/organization to assess their coverage for travel accident insurance.

Vehicle insurance

Rental vehicles, for ministries.

• If you have a corporate travel card you must use it to rent a vehicle and you should decline the collision damage waiver offered by the rental company. The benefits of the corporate travel card include insurance that covers the cost of repairing damage to approved vehicle types rented using the travel card.
• If you do not have a corporate travel card, or you rent a vehicle that is not eligible for coverage under the card, you should purchase the collision damage waiver coverage offered by the rental company. The insurance costs can be claimed as a travel expense. For more information, go to Travel Card Services website .

For provincial agencies/organizations

• Provincial agencies/organizations should check the coverage on any corporate travel cards.

Personal vehicle

If you use your personal vehicle while on government business, the following applies.

• The vehicle must be insured at the vehicle owner’s expense for personal motor vehicle liability.
• It is the driver/owner’s responsibility to ensure that the motor vehicle insurance includes coverage for business use of the vehicle.
• The government will not reimburse the costs of insurance coverage for business use, physical damage or liability.
• The government is not responsible for reimbursing deductible amounts related to insurance coverage.
• In the event of an accident, you will not be permitted to make a claim to the government for any resulting damages.

5.6 Transportation – How to get there

Ministry employees should make travel reservations through the government’s travel management company or book online through the Travel Gateway website .

• Use the government’s travel management company, when booking airfare or making multiple travel arrangements in combination with airfare.
• Use the online booking tools for travel arrangements other than airfare (for example, rail, hotel, rental car).

Provincial agency/organization employees and appointees may call the government’s travel management company directly. Where a provincial agency/organization has an established relationship with an alternative travel agency, it may make reservations with that travel agency as appropriate.

Air travel is permitted when it is the most practical and economical way to travel. Choose the lowest fare available when purchasing a ticket. Travel in business class must have prior approval by the deputy minister or CEO , in limited circumstances such as:

• on international flights
• on flights within Canada and the USA if related to the provision of reasonable accommodation (for example, health reasons)

In some cases, ministry employees may need to use government-owned and charter aircraft. This is managed through the Ministry of Natural Resources and Forestry.

Rail travel

Rail travel is permitted when it is the most practical and economical way to travel. Choose the lowest fare available when purchasing a ticket. Travel in business class must have prior approval by the deputy minister or CEO in limited circumstances such as:

• the need to work with a team
• choosing a travel time that allows you to reduce expenditures on meals or accommodation
• accommodation requirements
• health and safety considerations

Road travel

Choosing the appropriate vehicle.

When driving is the most practical, economical way to travel, the following choices are available:

• government vehicle
• rental vehicle
• personal vehicle

The use of any vehicle must be discussed in advance with your approver. Provide and document the rationale for using a particular type of vehicle. The most practical and economical option should be selected.

If you travel regularly as part of your job, arrangements for travelling and the choice of vehicle should be made when you are hired.

Government vehicle

Government vehicles may be available for use in ministries that have a fleet program. Employees should follow the rules approved by their ministry.

Government vehicles can only be used for government business. You can have a passenger in a government vehicle only if the passenger’s travel is related to government business.

Provincial agency/organization employees, appointees and consultants should follow the rules approved by the provincial agency/organization.

Rental vehicle

When renting a vehicle, choose the lowest cost model. Any exceptions must be:

• documented and approved prior to the rental if possible; and
• guided by the principle that the rental vehicle is the most economical and practical size, considering the business purpose, number of occupants, safety (including weather) considerations and any reasonable accommodation requirements.

Luxury and premium vehicles are not permitted.

To avoid higher gasoline charges, refuel your rental car before returning it.

Ministry employees must follow the rules below.

• Use the federal rental car directory to find appropriate companies.
• To ensure that the government, as employer, provides liability coverage when you are renting a vehicle in the province on Ontario government business, you must follow the requirements identified in the car rental section of the Travel Gateway website .

Provincial agency/organization employees, appointees and consultants should follow the rules for renting vehicles approved by the provincial agency/organization.

Car-sharing, through the government’s vendor of record , can be used if a vehicle is needed for a short duration (for example, approximately six hours or less) if:

• car-sharing is available in your area; and
• it is the most practical and economical way to travel.

Using a personal vehicle must be discussed in advance with your approver. The ministry or provincial agency/organization assumes no financial responsibility for personal vehicles.

Employees who have the approval to use a personal vehicle will be reimbursed according to the kilometric reimbursement rates. Employees must keep daily logs of the kilometers used to track the business use.

Accident reporting

All accidents must be reported immediately to local law enforcement authorities and your immediate supervisor. In addition:

• If you are using a government vehicle, advise the ministry’s fleet coordinator and the fleet management vendor of record as well.
• If you are using a rental vehicle, advise the rental car agency and contact the travel card insurance provider to initiate a claim.
• If you are using a personal vehicle, advise your own insurer.

Reimbursement rates

Rates are based on kilometres accumulated from April 1 of each fiscal year. Rates may be established in a collective agreement. If they are not, the rates in this Directive apply.

Expense claims must be submitted with distances calculated in kilometres.

For claimants who can use IFIS/iExpenses, the appropriate rate for reimbursement by kilometre is applied automatically when a claim is submitted electronically through IFIS/iExpenses.

All others should follow their ministry’s or provincial agency/organization’s procedure for claiming kilometre reimbursement.

Accumulated kilometres must be transferred with a claimant when moving within government to another job, ministry or provincial agency/organization.

Reimbursement rates for personal vehicles driven outside Ontario will be at the rates for southern Ontario.

A description of the boundary between northern and southern Ontario can be found in the Q&As document .

Parking and tolls

Reimbursement is provided for necessary and reasonable parking expenses, as well as tolls for bridges, ferries and highways, when driving on government business. Parking costs incurred in the office area as part of a regular commute to work will not be reimbursed. There is no reimbursement for traffic or parking violations.

Taxis and ride-hailing services

Prior approval to use a taxi or ride-hailing service should be obtained whenever possible. Taxis and ride-hailing services may be justified in cases where:

• group travel is more economical than the total cost of having individuals travel separately by public transit or shuttle; or
• there is an unusually tight schedule for meetings.

Taxis and ride-hailing services may not be used to commute to work or home except under exceptional circumstances; for example:

• weather, health or safety conditions indicate it is the best, appropriate option; or
• transport of work-related baggage or parcels is required.

Ride-hailing services can only be used and reimbursed under the following conditions:

• in municipalities where ride-hailing services are regulated and appropriately insured; and
• where a standard (that is, non-premium and single occupancy) service is used.

Use your corporate travel card to pay for any ride-hailing expenses, whenever possible.

Gratuities for taxis and ride-hailing services must be reasonable.

Public transit

Local public transportation including hotel/airport shuttles should be used wherever possible. Program areas should consider purchasing a transit pass or passes, where available and appropriate, for use by employees on work business.

5.7 Accommodation

In the normal conduct of business, reimbursement for overnight accommodation within your office area will be neither authorized nor approved. However, in emergency or highly unusual situations exceptions will be considered. For example:

• You are required to remain close to your office for periods long in excess of (your) standard working hours.
• Your services are deemed necessary (and approved accordingly) for the purposes of emergency or crisis management.

Reimbursement for hotel suites, executive floors or concierge levels is not permitted. Reimbursement will be made for single accommodation in a standard room. To lower the costs of accommodation, consideration should be given to aaccommodation outside of downtown areas. Often, it is more economical and accessible by public transit and other cost-effective means of transportation.

For extended stays at a single location, accommodation must be arranged with prior approval. This will take advantage of lower weekly or monthly rates.

Penalties incurred for non-cancellation of guaranteed hotel reservations are the claimant’s responsibility and may be reimbursed only in an exceptional circumstance.

Use the federal online accommodation directory which provides information on service providers offering government rates. If you do not have access to the directory, use the rules in your workplace.

Private stays with friends or family are acceptable, and a cash payment or gift may be provided to the friends or family:

• A maximum of $30 per night is allowed for accommodation including any meals with friends or family, in lieu of commercial accommodation. Instead of a receipt, you must submit a documented explanation describing the purpose of the trip, identifying the host and the number of days you stayed.
• The $30 value may be given in the form of a small gift (which must be accompanied by a receipt) or by cash or cheque.

5.8 Incidental expenses

Incidental expenses are those types of expenses that are sometimes a necessary part of travel. Some common types of incidental expenses are set out below. Necessary and reasonable incidental expenses that are not specified below may be claimed and reimbursed if you anticipate these expenses and obtain prior approval. Incidental expenses for which prior approval was not obtained require deputy minister/ CEO approval. Approval is subject to managerial discretion.

Visas and immunization

You may be reimbursed for the cost of a visa and/or the cost of immunizations and medications if necessary for international travel.

Laundry and dry cleaning

If travelling on business for five consecutive days or more, reimbursement for laundry and dry cleaning is allowed within reasonable limits. Itemized receipts are required.

You will not be reimbursed for personal or recreational items including toothbrushes, pay-per-view, items from the mini-bar, or hotel valet services.

Communication

With prior approval, you may use your government cell/mobile phone for business purposes when travelling. Speak with your approver to determine what is covered in your cell/mobile phone plan and how your ministry or provincial agency/organization wishes to handle long distance or roaming charges. Note that any use of a mobile phone is subject to a security assessment if travelling outside of Canada (see Section 5.5 above).

Wherever possible, you are expected to use the least expensive means of communication, such as:

• internet enabled calling cards
• internet access through the local provincial government network

Use alternatives to travel whenever possible (for example, audio or video conferencing).

If you are away on government business, reimbursement may be made for:

• reasonable and necessary personal calls home
• reasonable and necessary business calls
• emergency calls
• internet connections and computer access charges
• word processing, faxing, photocopying, and scanning services
• rental and transportation of necessary office equipment
• Dependent care

For the purposes of this Directive, a dependent is a person who resides with the traveler on a full-time basis and relies on the traveler for care (for example, a child or parent).

Prior approval for reimbursement of dependent care expenses is required, as well as a documented explanation of the circumstances. If travel is an expected part of your job duties, there is no reimbursement for dependent care expenses. However, expenses may be reimbursed if the travel requirements of your job or personal circumstances change unexpectedly.

Requests for dependent care expenses may be reimbursed under the following circumstances:

• if travel is occasional or unexpected; and
• if you incur expenses above and beyond your usual costs for dependent care as a direct result of travel.

In these situations, you may be reimbursed for your actual costs up to a daily maximum:

• $75/day/dependent, if you have a caregiver’s receipt
• $35/day/dependent, if you provide a documented explanation

6.1 Reimbursable meals

Reasonable and appropriate meal expenses may be reimbursed. You may incur a meal expense when you are on government business and you:

• are away from the office area (that is, at least 24 km) over a normal meal period; or
• have prior approval for the expense (for example, a business meeting within the office area that must occur over lunch).

Meal expenses will be reimbursed at the established meal allowance rates, regardless of the actual meal costs. A meal allowance rate recognizes that sometimes a meal may be less than the allowance rate, and sometimes more; regardless, the allowance rate is reimbursed. Taxes and gratuities are included in the meal allowance rates. Receipts are not required to be submitted or retained. Meals must be purchased in order to be able to submit a claim for reimbursement. Alcohol cannot be claimed and will not be reimbursed.

In very limited and exceptional circumstances (for example, health or dietary considerations; limited options available) where a meal expense is higher than the meal allowance rate, the actual cost of the meal may be reimbursed. Where these circumstances are anticipated, prior approval is required. Where these circumstances have not been anticipated and prior approval has not been obtained, deputy minister or CEO approval for reimbursement of the expense is required. In any situation where there is a claim for a meal expense higher than the allowance, the claim must be accompanied by an itemized receipt and a documented rationale for exceeding the rate. A credit card slip is not sufficient. Approval is subject to managerial discretion.

There may be situations where an individual pays the meal expenses for a group of individuals. In such cases, the individual may be reimbursed for the total of all meals purchased at the allowance rate for that meal. Group meal expenses can be claimed only:

• by the most senior person present – expenses cannot be claimed by an individual that are incurred by their approver; and
• for individuals covered by this Directive.

The meal allowance rate is for food eaten in a restaurant or for the purchase of prepared food only. Reimbursement for groceries must have prior approval. A receipt and a documented rationale including a breakdown of the actual groceries used for the meals being claimed must be submitted with the claim.

Reimbursement will not be provided for meals consumed at home or included in the cost of transportation, accommodation, seminars or conferences. If you travel as a regular part of your job, your meals will not normally be reimbursed unless you have obtained prior approval.

6.2 Centrally purchased meals (catered)

For meals that are centrally purchased (for example, catering for a working meeting), the maximum amount spent per person should not exceed the established meal allowance rate. As with all corporate purchase card transactions, receipts and appropriate approvals are required.

6.3 Meal rates in Canada

Reimbursement for meal expenses incurred in Canada is subject to the meal allowance rates set out in the chart below. The rates include taxes and gratuities.

These rates should also be used as the maximum amount per person for any centrally purchased meals.

6.4 Meal rates outside of Canada

Federal meal allowance rates are used for meal expenses incurred outside Canada as set out in the appendices of the National Joint Council Travel Directive or successor directive. The rates include taxes and gratuities.

The two relevant appendices are:

• Appendix C – Allowances – Module 2 footnote 6 [6]
• Appendix D – Allowances – Module 4 footnote 7 [7]

The following lists set out when and how to use the appendices.

Travel to USA

• Meal allowance rates are found in Appendix C.
• Rates are the same as the federal rates for Canada, but in US funds.
• Rates include taxes and gratuities.
• Rates do not include incidental expenses.

International travels (outside Canada and the USA )

• Meal allowance rates are found in Appendix D.
• Rates are in the funds identified for each country.
• Rates are dependent on the city rates.

7.0 Hospitality

Hospitality is the provision of food, beverage, accommodation, transportation and other amenities at public expense to people who are not engaged in work for:

• any entity covered by this Directive
• any organization covered by the Broader Public Sector Expenses Directive

Hospitality cannot be offered solely for the benefit of anyone covered by this Directive or the Broader Public Sector Expenses Directive. This means that reimbursement or payment of expenses related to office social events (for example, retirement parties, holiday lunches, etc.) are not permitted.

Hospitality may include hosting or sponsoring planned events, and business interactions (for example, networking meals).

Hospitality may be extended in an economical and consistent manner on behalf of the government under the following circumstances.

• representatives from other governments
• business and industry
• public interest groups
• labour groups
• When the business of a provincial agency/organization includes hospitality
• providing people from national, international, or charitable organizations with an understanding or appreciation of Ontario and the workings of its government
• honouring people for exceptional public service in Ontario
• conducting ceremonies for heads of state, government or guests from the private sector
• Other hospitality as approved by the deputy minister or CEO , providing it conforms to the rules set out in this section of the Directive.

7.1 Planned hospitality events

A government facility should be used if available and appropriate. If not, prior approval from the deputy minister or CEO is required.

Costs should be minimized where possible with due regard for the guests’ status, the size of the party, and the intended business purpose.

• must document and justify the list of government representatives;
• keep the number of government representatives to a minimum, limiting it to those who have a direct involvement in the purpose of the event; and
• may be paid only on authorization by the deputy minister or provincial agency/organization CEO
• may include costs for travel, event tickets or tours
• must be paid directly to the partner

7.2 Hospitality that includes alcohol

Hospitality may include the provision of alcohol:

• at a planned hospitality event
• at a business interaction (for example, networking dinner)

Ministries and hydro organizations are not permitted to incur expenses for alcohol. Reimbursement or payment of alcohol is only permitted for provincial agencies if it is considered to be integral to their business.

The following is required prior to serving alcohol at a planned hospitality event:

• prior documentation with approval from the deputy minister; ministers have no authority to approve (see also special status below for more information)
• completed form on hospitality with the service of alcohol

Reimbursement of alcohol expenses is allowed only when the appropriate approvals are in place. Alcohol must be provided in a responsible manner (for example, food must be served when alcohol is provided). Preference should be given to wine, beer and spirits produced in Ontario.

7.3 Special status for service of alcohol at planned hospitality events

To ensure that the approvals process does not have an undue negative effect on the ability of the agency to conduct business, ministries may request special status on behalf of provincial agencies. Special status would allow the chair to approve the service of alcohol at planned hospitality events instead of the deputy minister.

Only Treasury Board/Management Board of Cabinet ( TB/MBC ) can approve special status. Ministries can apply for special status on behalf of their provincial agency by bringing forward a business case to TB/MBC . If TB/MBC approves special status, the chair may approve the service of alcohol at planned hospitality events or delegate approval authority to the CEO . A provincial agency with special status must report regularly to their ministry; see Appendix A for reporting requirements.

Special status is approved for three years. If special status continues to be required by the provincial agency, the ministry must reapply to TB/MBC on behalf of the provincial agency. Should the business of a provincial agency with special status change significantly during the three years, the ministry must reapply to TB/MBC for special status, if appropriate.

For more information on this process and for the approval levels within agencies once special status is granted, see Appendix A.

7.4 Gift-giving

Appropriate token gifts of appreciation, valued up to $30, may be offered in exchange for gifts of service or expertise to people who are not engaged in work for the government of Ontario, or with any organization covered by the Broader Public Sector Expenses Directive . Gifts valued over $30 must have prior approval.

When the provision of a gift is considered desirable as a matter of custom or protocol, please refer to the following for direction:

• For visiting delegations and other matters of protocol: contact Cabinet Office, Ministry of Intergovernmental Affairs at [email protected]
• For information on working with Indigenous peoples and gift-giving provisions in Ontario: see Gift Etiquette in the Tools for Indigenous relationships and engagement on InsideOPS.

7.5 Documentation for hospitality reimbursement and payment

Hospitality expenses for planned events should be paid using a corporate purchase card, if possible. Hospitality expenses for business interactions should be paid using a corporate travel card, if possible, and reimbursed to the claimant.

All expenses must be documented and include itemized receipts. The claim must include hospitality details regarding:

• hospitality provided
• Ontario government attendees (those covered by this Directive) listed by name and position
• Broader Public Sector organization attendees (those covered by the Broader Public Sector Expenses Directive ) listed by name and position
• other attendees listed by name and organization
• appropriate prior approvals

8.0 Expenses for consultants and other contractors

Consultants and other contractors will not be reimbursed for any hospitality, incidental or food expenses, including:

• Meals, snacks and beverages
• Laundry or dry cleaning
• Personal communications

Reimbursement for allowable expenses under this Directive can be claimed only when the contract with the government or provincial agency/organization specifically allows for it.

9.0 Responsibilities

Employees and appointees are responsible for:

• following the principles and rules set out in this Directive
• being aware of the conflict of interest rules that govern their ministry or provincial agency/organization
• being aware of any relevant statutes, directives, policies and guidelines

Supervisors and managers are responsible for:

• carrying out any delegated authorities and assigned tasks in accordance with this Directive
• exercising managerial discretion judiciously
• ensuring there is an appropriate records retention system and that documents, including claims and approvals, are maintained and stored
• ensuring staff are aware of the requirements of this Directive
• seeking timely direction when there are questions of application
• taking appropriate action in the case of non-compliance

Deputy ministers and CEO s/chairs are responsible for:

• ensuring the Directive’s principles, requirements and best practices are implemented and monitored, including putting in place processes that support the Directive
• delegating approval authority to appropriate levels within the ministry except as restricted in this Directive
• ensuring consistent application of the Directive (for example, for all jobs requiring regular travel)
• ensuring that claims are fully documented by running regular spot checks
• ensuring that all persons covered by this Directive are aware of their responsibilities under this Directive and of the appropriate conflict of interest rules
• approving the service of alcohol at hospitality events in provincial agencies that do not have special status for that purpose granted by TB/MBC (deputy ministers only)

Chairs are responsible for:

• ensuring all employees and appointees are made aware of their responsibilities under this Directive
• ensuring the Directive is applied and monitored appropriately
• ensuring that staff with delegated authority are able to effectively apply this Directive

Ministers are responsible for:

• approving international travel plans by persons in provincial agencies/organizations, as appropriate, that do not have special status for that purpose granted by TB/MBC
• delegating approval authority to deputy ministers as set out in the Directive

Deputy Minister, Treasury Board Secretariat is responsible for:

• interpreting this Directive and providing advice, guidance, educational materials and information
• maintaining and enforcing controllership standards and guidelines for corporate travel card for use by OPS employees

Deputy Minister, Government and Consumer Services is responsible for:

• establishing and managing corporate contracts for travel services including ticketed transportation, accommodation and vehicle rental
• overseeing the insurance and risk management function of the government
• negotiating and managing the services agreement for the corporate travel card

Secretary, Treasury Board/Management Board of Cabinet is responsible for:

• approving plans for travel in Canada and the USA by persons in ministries and deputy ministers
• delegating approval authority to appropriate levels within the ministry, but not for direct reports
• specifying any reporting requirements, monitoring the application of the Directive and recommending improvements
• reviewing the reimbursement/allowance rates in this Directive every two years to identify possible adjustments or amendments
• reviewing this Directive on a regular basis
• designating the senior managers in ministries required to disclose their expense information on the public website

Secretary of the Cabinet is responsible for:

• approving the travel plans and expenses of deputy ministers as set out in this Directive
• delegating authority for approval of deputy ministers’ expense to the Secretary of TB/MBC
• approving international travel by persons in ministries and deputy ministers
• approving international travel by persons in Commission public bodies, as appropriate, that do not have special status for that purpose granted by TB/MBC
• delegating approval authority to deputy ministers and to the Secretary of TB/MBC as set out in this Directive
• submitting their business expenses for items covered in this Directive to the Conflict of Interest Commissioner for approval

Treasury Board/Management Board of Cabinet is responsible for:

• setting government policy on travel, accommodation, meals and hospitality expenses
• approving special status for international travel by persons in provincial agencies/organizations based on a business case
• approving special status for the service of alcohol at hospitality events in provincial agencies based on a business case
• granting exemptions from all or part of this Directive

10.0 Definitions

Appointee: A person appointed by the government to undertake any function on behalf of the government.

Approver: A person with the authority to make approvals under this Directive.

Chair: Someone appointed as head of a provincial agency/organization, accountable to the minister, regardless of whether the title "chair" is used.

Chief Executive Officer (CEO): The head of operations at provincial agencies and organizations.

Claimant: Anyone making a claim under the terms of this Directive.

Commission public body: a provincial agency whose employees are appointed under section 32 of the Public Service of Ontario Act, 2006 (PSOA) (Commission public bodies are prescribed by regulation under PSOA ).

Consultants and contractors: Individuals or entities under contract to ministries or to provincial agencies providing consulting or other services.

Delegation of authority: A written assignment by which a person who has a power, duty, function or responsibility under this Directive authorizes another person (identified by name or by position title) to exercise the power, duty, function or responsibility.

Dependent: Someone who resides with the traveler on a full-time basis and relies on the traveler for care (for example, a child or parent).

Documented approval: Agreement or consent from manager or above to incur an expense, as outlined in this Directive, in a written or electronic format.

• OPS employee: Individual appointed as a public servant under section 32 of the PSOA (includes employees in ministries and in provincial agencies that are Commission public bodies)
• Provincial agency/organization employee: Individual employed by a provincial agency/organization that is not appointed under section 32 of the PSOA (includes some provincial agencies and organizations (Independent Electricity System Operator and Ontario Power Generation Inc. ))

Hospitality: The provision of food, beverage, accommodation, transportation and other amenities at public expense to people who are not engaged in work for the government of Ontario or for any organizations covered by the Broader Public Sector Expenses Directive .

Itemized receipt:   Document identifying the vendor with the date and amount of each expense item paid by the claimant. Document can be in an original paper, an original electronic, or a scanned copy format.

Office area: The area surrounding the regular workplace, with a perimeter of 24km measured by the most direct, safe and practical route by road.

Organizations: For the purposes of this Directive, the Independent Electricity System Operator and Ontario Power Generation Inc.

Provincial agency: An entity that is part of the government of Ontario, but not organizationally part of a ministry, and is subject to the Agencies and Appointments Directive .

Travel management company: The Ontario government’s vendor of record for travel.

11.0 Appendices

11.1 appendix a: requesting special status for international travel and/or service of alcohol at hospitality events, process for obtaining special status.

• Special status must be based on a provincial agency’s/organization’s demonstrated, unique business need.
• The provincial agency/organization initiates contact with the responsible ministry to request special status; and, with minister's approval, the ministry develops the TB/MBC submission.
• special status being requested: approval for service of alcohol at hospitality events and/or for international travel
• business case: demonstrates how the special status supports the provincial agency’s/organization’s business plan and mandate
• travel plan forecasting the international travel requirements; and/or
• listing of types of events where alcohol may be served.
• commitment to report regularly on activity undertaken
• commitment to provide annual activity forecasts

Regular reporting should include the following:

• activity undertaken by the provincial agency/organization during the reporting period, indicating whether the activity appeared on the forecast
• if not forecasted, then an explanation of the occurrence of the activity

Approval levels for provincial agencies/organizations with special status:

• The chair has the approval authority for the service of alcohol at a hospitality event.
• The chair may delegate to the CEO .
• Prior documented approval is required for each event.
• The chair has the approval authority for international travel by persons in the provincial agency/organization, except for chair’s own travel.
• The chair may delegate approval authority to the CEO , except for approvals for appointees and for any positions reporting directly to the chair, including the CEO .
• Prior documented approval is required.

11.2 Appendix B: Summary of approval authority

The chart below summarizes the approval authorities for deputy ministers and above for ministries and provincial agencies/organizations in the Travel, Meal and Hospitality Expense Directive.

The Directive sets out the approval authority for incurring travel, meal and hospitality expenses. Approval authority for the reimbursement of expenses is based on the delegation of financial authority established for ministries and provincial agencies/organizations.

Provincial agencies/organizations

11.3 appendix c: revisions to the travel, meal and hospitality expenses directive, revisions as of may 1, 2023.

• Rental vehicles – streamlined information to reference the Travel Gateway for instructions
• Gift-giving – added reference to, and contact information for, protocol gifts

Revisions as of January 1, 2020

• Principles – separated principles and best practices and strengthened reference to use of alternative communications options
• Public Disclosure – added direction on public disclosure from the former Appendix D
• Changes to special status provisions
• Updated categories for travel approvals
• Airplane and Train – removed industry specific terms, identified the lowest fare available as the standard
• Vehicle – removed order of preference, adjusted references to government fleet vehicles, added direction on car-sharing VOR
• Added rules on ride-hailing to taxi section
• Added option to purchase a public transit pass or passes
• Updated Other Expenses to Incidental Expenses and modified the common types of expenses
• Meals – added requirement for Deputy Minister or CEO approval for meal expenses higher than allowance rate; added direction on centrally purchased meals
• Hospitality – updated scope of hospitality to prohibit hospitality for organizations covered by BPS Expenses Directive; updated rules on service of alcohol
• Enabling digital processes – changed language from written to documented for approvals and rationales, and removed requirement for receipts to be original (Throughout directive)
• Housekeeping: updated agencies to provincial agencies, updated for plain language (Throughout directive)
• Added an appendix summarizing provisions and approval authorities
• Removed Appendix B – Travel Management Company, Appendix C – Website Links, and Appendix D – Public Disclosure of Expenses

Revisions as of January 1, 2017

• Application and scope section – updated to remove dated reference to Public Sector Expenses Review Act, 2009, provide specific references to hydro organizations
• Changes to the meal reimbursement method and rates
• Clarified security assessment requirements for international travel
• Public Disclosure of Expenses – removed reference to Public Sector Expenses Review Act, 2009
• Housekeeping: change in terminology – from classified agency to provincial agency (Throughout directive)

Revisions as of November 2014

• Appendix D: Amendment to the Travel, Meal and Hospitality Expenses Directive Public Disclosure of Expenses

Revisions as of April 1, 2010

• Document restructured to conform to directive format, and for better flow of information
• Purpose expanded to provide direction for the public disclosure of information about expenses
• Application expanded to include agencies/organizations identified under the Public Sector Expenses Review Act, 2009
• Accountability framework section clarifies approval authorities, the delegation of authority, managerial discretion and public disclosure of information about expenses
• Travel section includes clarification on ministry and agency/organization approvals for travelling, and clarifies rules for reimbursement of travel expenses
• Hospitality section includes clarification on ministry and agency/ organization approvals for hospitality including the service of alcohol
• Consultants and contractors’ section set out clear rules for reimbursement of expenses
• Responsibilities section is enhanced and expanded
• New appendices provide greater clarity

12.0 Past editions

Travel, Meal and Hospitality Expenses Directive 2020

If you require previous versions of this directive prior to 2020, please contact ( [email protected] ). We will:

• acknowledge your request in 3 days
• provide you with the content within 15 business days
• footnote [1] Back to paragraph ^ These are the levels for approving travel, not for approving any expenses related to travel. Approval of expenses rests with the individuals in organizations that have financial approval authority (through the financial delegation of authority for OPS employees, or applicable mechanism in other organizations.)
• footnote [2] Back to paragraph ^ Travel within Ontario includes travelling to the National Capital Region (Ottawa/Gatineau); and outside the province when it provides a more economical route between provincial destinations.
• footnote [3] Back to paragraph ^ Given the level of responsibility, no approvals are required.
• footnote [4] Back to paragraph ^ According to the ministry’s or provincial agency/organization’s delegation of authority.
• footnote [5] Back to paragraph ^ For information about eligibility for medical, health and travel accident insurance coverage, see the Pay and Benefits website and relevant collective agreement, as appropriate.
• footnote [6] Back to paragraph ^ Modules 1, 2 and 3 are differentiations for federal use only.
• footnote [7] Back to paragraph ^ Module 4 refers to international travel (outside Canada and the USA ).

CRA Mileage Rate 2024: Guide to Tax-Free Vehicle Allowances For Business Travel

Cra mileage rate 2024.

Are you an employee, small business owner, or self-employed individual looking to understand the rules and regulations of CRA mileage rate this 2024 ? Canadian taxpayers need to be aware of what they can expense on their taxes as entertainment, such as meals or kilometres travelled in a car.

We will discuss all relevant to ensure you maximize your deductions for businesses travelling while remaining compliant.

Key Takeaways

• 70¢ per kilometre for the first 5,000km driven
• 64¢ per kilometre after that
• 74¢ per kilometre for the first 5,000km driven
• 68¢ per kilometre after that

Changes to the CRA mileage rate for 2024

When reimbursing employees for business travel, the Canada Revenue Agency (CRA) has set out a specific set of rules that employers must adhere to. Canadian taxpayers should be aware of these rules when managing their business expenses to avoid any penalties from the CRA.

The 2024 standard CRA mileage rate per kilometre is currently 70 cents with a 4-cent per kilometre reduction after the first 5,000 kilometres driven yearly.

Here’s the CRA’s Automobile Allowance Rates for the past five years:

You can report any tax-subjected automobile allowances paid to employees or officers on Form T2200 Declaration of Conditions of Employment .

Employers can claim input tax credits based on reimbursements made for these expense claims but must ensure they keep detailed records alongside invoices related to any incurred costs.

Businesses must recognize reimbursement requirements, as failure to comply could result in CRA-implemented fines and other financial penalties, which will financially affect both employers and their staff.

What is CRA mileage allowance and tax-free vehicle allowance in Canada?

The CRA mileage rates are a guide set by the Canada Revenue Agency to reimburse taxpayers for vehicle expenses incurred for business use. They calculate the deductible expenses related to operating a vehicle for business, medical, moving, or charitable purposes. Taxpayers can use these rates to calculate their deductible vehicle expenses when filing their income tax returns.

How to use the 2024 CRA mileage rate and automobile allowance: Salaried workers, Self-employed, and Employers

Mileage reimbursement rules for salaried workers.

Employees may be eligible to claim allowable motor vehicle expenses on their income tax return if they incurred these expenses under the terms of their employment contract. For instance, if an employer agrees to reimburse travel expenses for using one’s personal vehicle for work-related tasks.

However, it’s essential for employees to maintain accurate records and evidence to substantiate that the kilometers claimed were indeed for business purposes.

Mileage Reimbursement Rules for Self-employed

Self-employees can also deduct business-related vehicle expenses. This also applies to personal cars used for business purposes such as purchasing supplies for your businesses, meeting with clients, attending conferences, or visiting customers. Other expenses may also include:

• License and registration fees
• Fuel and oil expenses
• Insurance fees
• Maintenance and repairs expenses
• Leasing costs
• Capital cost allowance

The allowance will be deducted in the annual tax returns. But remember, self-employees must keep receipts and invoices in order to get deductions. Expenses incurred for personal use of their personal vehicle will not be eligible for coverage under the allowance.

Mileage Reimbursement Rules for Employers

There is no law mandating that employers must compensate employees for using their personal vehicles for business purposes – this depends on individual company policies or contracts.

Nevertheless, implementing a mileage allowance using Canada Revenue Agency (CRA) standards can make a job offer more attractive to potential employees, as it compensates for their personal vehicle usage.

With a CRA mileage allowance, employers are obliged to cover employees’ work-related vehicle expenses. This reimbursement also provides a tax benefit for the company. To qualify as legitimate and tax-deductible, the reimbursement should:

• Cover the yearly amount of kilometres driven solely for business purposes
• Be based on a reasonable per-kilometre rate or slightly lower than the official CRA vehicle allowance rates
• Be for the employee who hasn’t already been reimbursed for the same use of their vehicle.

If these conditions are met, the mileage reimbursement is considered a non-taxable benefit for employees.

Eligibility For CRA Mileage Rate 2024 And Tax-Free Vehicle Allowances

The CRA provides rules and regulations for claiming tax-free vehicle allowances and mileage rates when travelling for business purposes.

You are also eligible if you use your car to attend conventions, seminars or meetings, and other activities with work-related purposes away from home. But travelling from your home to your normal place of work is not considered business-related driving.

The type of transportation used is essential—employees using public transport, such as buses and subways, do not qualify for any reimbursements. At the same time, those who choose personal cars will receive a predetermined per-kilometre rate (according to the CRA standard mileage rate as shown above).

4 Types Of Business Travel Eligible For CRA Mileage Rates And Tax-Free Vehicle Allowances

• Regular Work Locations
• Temporary Work Locations
• Home Office as a Regular Work Location
• Commuting to Work

Whether travelling for regular work locations, temporary work locations, home office or commuting to work, you’ll find everything you need to know about the CRA mileage rates and tax-free vehicle allowances here.

Canada Revenue Agency (CRA) defines regular work location as any workplace that the employee visits at least once a week on a sustained basis for a purpose related to their employment.

It includes both long-term and short-term job positions or assignments. The employer must be able to provide sufficient proof of attendance; records such as timesheets should help demonstrate this.

In addition, travel expenses associated with these locations are only eligible for reimbursement if they are located more than 80 km (one way) from the primary place of business or residence of the employee.

For example, an accountant who works in Toronto but travels to Ottawa each weekend would likely qualify for CRA mileage rate reimbursements since it’s more than 160 km one way between cities—even if he has not been assigned there permanently yet.

Any work location other than an employee’s regular place of employment is considered a “temporary” work location and would be eligible for mileage rate and tax-free vehicle allowances.

According to CRA guidelines, temporary locations last up to four weeks or have been pre-approved by the employer in writing. Considering all surrounding circumstances, the employer must demonstrate why the travel was reasonable.

Any expenses related to this travel, such as lodging, meals, allowance and specific motor vehicle rates, can be deducted from income if proven to be necessary business or relocation expenses incurred during that journey.

• Home Office As A Regular Work Location

Home offices may qualify for either CRA mileage reimbursement or tax-free vehicle allowance when it is determined to be a regular work location.

To qualify as a regular work location, the home office must be used for working with clients or customers more than 50% of the time each month and must meet specific criteria, such as having private entrances, separate telephone lines and an exclusive portion of the residence dedicated solely for business activities.

• Commuting To Work

Commuting expenses incurred while travelling to and from work regularly are usually not eligible for mileage rate or tax-free vehicle allowance benefits under the CRA.

However, Canadian taxpayers can claim certain commuting expenses for business activities associated with their job or profession that require them to travel and attend industry events or other such engagements away from their workplace.

To be eligible, the primary purpose of this travel must be generating income by performing duties related to your job/profession rather than commuting between home and work.

LEARN MORE: How to Find the Best Tax Accountant Near Me

Mileage Reimbursement Implications

Tax implications.

In Canada, tax deductions are available to businesses for business travel expenses, including mileage and car allowances. Mileage allowance paid to employees or officers is treated as a taxable benefit subject to the employer’s income tax withholding at source.

If an employee is provided with the use of a company car, this will be presented as part of their salary, and taxes will be deducted accordingly. For employers, eligible expenditure on providing car allowances to employees may also qualify for input tax credits if applicable according to prevailing rules in each province or territory.

Accurate tracking and record-keeping are essential when claiming CRA mileage rates and tax-free vehicle allowances for business travel. Recent changes have been implemented regarding the supporting documentation that employers must keep to claim certain deductions from their business’s income taxes relating to these types of expenses (e.g., a detailed log that includes the date of travel, route taken, and distance travelled).

If you need clarification about the tax implications, you can always consult a tax accountant who can help you with personal and corporate tax matters.

External Influences

• Economic Conditions : Rates might be adjusted to align with prevailing economic conditions.
• Cost of Fuel: Fluctuations in fuel prices may cause the allowance rate to increase or decrease.
• Inflation Rates: General inflation can affect the cost of vehicle maintenance, repairs, insurance, and other related expenses. CRA might adjust the mileage allowance accordingly.
• Policy Changes: Any new regulations regarding business expenses and reimbursements might necessitate changes to the allowance.
• Technological Advancements: The increase in electric and hybrid vehicles can affect the per-kilometre cost calculation regarding vehicle expenses, which could potentially impact the CRA mileage allowance.

3 Tips For Managing Business Travel Expenses and Mileage Tracking

– Provide clear guidelines for employees to follow when tracking and recording business travel expenses, such as keeping detailed records and utilizing technology.

1. Keep Detailed Records

Keeping detailed records of business travel expenses is essential for Canadian taxpayers. It helps to accurately calculate CRA mileage rates and tax-free vehicle allowances and avoid potential issues during an audit from the Canada Revenue Agency (CRA). Taxpayers need to keep records such as:

• Gas receipts

• Oil changes

• Car maintenance & repair costs

• Insurance payments

• Any other related out-of-pocket expenses

By keeping these mileage records, Canadian taxpayers can easily track their business travel expenses and ensure everything is accounted for correctly. Further, it provides evidence that any vehicle deductions are legitimate, so there are no problems or additional costs associated with CRA audits. Technology can also help Canadians monitor their spending by using various automatic mileage tracking tools, such as Driversnote’s expense reimbursement system and tracking tool – perfect for managing business trips abroad or just around town!

2. Use Technology To Track Vehicle Expenses

Technology can be a valuable tool for managing business travel expenses associated with CRA mileage rates and tax-free vehicle allowances. Mileage tracking apps and other tools can enable accurate record-keeping and precise calculations, which can help taxpayers claim total tax deductions. Keeping a detailed log of trips is still necessary, but using technology reduces the need for manual tracking of odometer readings while adding convenience.

Examples of mileage tracking apps include TripLog , MileIQ , QuickBooks Self Employed , etc. Additionally, businesses may install GPS units on employee vehicles to keep track of automobile-related expenses for various purposes, including deduction claims at year-end taxes or providing client billing information when required.

Using these apps or tools can make managing business travel expenses in different locations within Canada easier by automatically tracking all drives based on time spent driving as per kilometre rate set by the CRA standard mileage allowance (SMA). It saves time to manually enter odometer readings every time an individual travels between two points, ensuring that no detail remains unaccounted during tax filing or claiming expenditures from bosses/employers, respectively.

DISCOVER: Free Resources

3. Reimburse Employees Promptly

Employers must ensure that employees are reimbursed promptly and accurately for travel expenses on business trips to avoid any potential complications or legal ramifications.

Promptly reimbursing employees helps maintain employee morale and makes them feel empowered and valued, primarily if the employer guides them in navigating the expense system. Hence, they know exactly what to do when their reimbursements will be delivered and why it’s crucial.

According to Canadian tax laws, employers who provide an automobile allowance must maintain documents clearly outlining this arrangement and documenting all claims made by employees against it via an expense reimbursement form.

Furthermore, failure to automate the process in some way may lead to delays with repayment — another aspect that should be addressed in such arrangements.

• Understanding Provincial/Territorial Allowances and Mileage Rates in Canada

Canadian taxpayers are responsible for understanding the differences between federal and provincial/territorial allowances when claiming expenses related to business travel.

The CRA has a standard mileage rate of $0.70 per kilometre for the first 5,000 kilometres driven each year; however, some provinces or territories might have additional tax-free vehicle allowance amounts based on their accommodations, cost of living or other particular circumstances that could increase the amount an individual can claim up from CRA’s base rate.

CRA Mileage Rate 2024 Conclusion

As business travel can be complicated and expensive, understanding the CRA mileage rates and tax-free vehicle allowances is essential. Following the rules prescribed by the Canada Revenue Agency (CRA) can save time, money, and energy when preparing your taxes.

The key takeaway from this article is to keep records of all your travels—including destinations, distances travelled, and dates—and submit accurate expense reports for CRA mileage reimbursement or claim for a business vehicle allowance as per eligible criteria as soon as possible.

Common questions related to CRA Mileage Rates this 2024 And Tax-Free Vehicle Allowances For Business Travel relate to eligibility criteria for claiming deductions on taxes relating to business trips; applicability of different rates in various provinces/territories; use of technology tools for tracking expenses; etc., all of which have been addressed throughout this article.

It’s also essential to remember that expenses must adhere to guidelines set forth by the Canada Revenue Agency’s prescriptions for deductions to apply on personal income tax filings.

1. What are the CRA mileage rates for business travel?

The Canada Revenue Agency (CRA) sets a mileage rate for business travel for automobile and bicycle use. Currently, the kilometric rate is set at $0.70/km (2024)for taxis, cars or vans leased or owned by employees.

2. How do you calculate vehicle allowances provided by employers through CRA?

To calculate vehicle allowance amounts provided by employers using the CRA mileage rate, multiply an employee’s total business kilometres driven during a given tax year with the corresponding kilometric rate of ($0.70 per km 2024 for the first 5,000km and $0.64 thereafter). This amount should be included in Box 14 on their T4 slip from the employer to declare it as income when filing taxes every year unless the allowance meets certain criteria and is considered “reasonable.”

3 . Are car expenses covered under my prescribed mileage rates allowance?

Yes – once you met CRA’s conditions, reimbursed car expenses such as insurance costs and eligible lease payments are intended to be covered by your prescribed mileage rates allowance according to CRA guidelines.

Are you looking for assistance with your personal or corporate taxes? Look no further than CPA Guide. Our network of top accountants and accounting firms in Canada will help you find the best CPA to suit your needs. Get started today with CPA Guide .

(844) 538-2937 or ( 416) 593-4357

CRA Review of Corporate Travel Expenses

The Canada Revenue Agency (the “ CRA ”) conducts regular reviews of corporate tax returns. As part of a new group project, the CRA is focusing on corporate travel expenses. What does this mean if you claimed travel expenses on your corporate tax returns?

You may be selected for a review to ensure that you have the correct books and records in order to deduct the travel expenses you have claimed. Once selected, the CRA will ask for documentation to support your deductions and explanations how they relate to your business.

Travel Expenses

A taxpayer can deduct travel expenses incurred to earn business and professional income. In other words, you can deduct reasonable travel expenses only for travel that relates to your business. Examples of acceptable travel expenses include public transportation fares, hotel accommodations, and meals.

When claiming travel expenses, it is important that you keep all of the related records. While the CRA may accept bank or credit card statements as proof, they normally require the primary receipt to give you the full amount of your deduction claimed. Best practice is to also keep a travel log so that you are able to explain how the travel furthers your business. Without a log, the CRA will be skeptical that your travel was related to your business.

What is the CRA Review Process?

If you have been selected for a review, you will get a letter or telephone call from the CRA. The CRA will ask for information, receipts, or documents to support a claim or deduction you made on your tax return.

If you are registered for online mail, the CRA will send you an email notifying you of a letter on your CRA account. You should promptly go to My Account where you can review the letter and begin working on your response.

It is important that you respond and send all the information requested as soon as possible. This will help the CRA review your file quickly. Keep in mind also that these reviews are not full tax audits .

The type of documentation the CRA may request to support travel expenses include:

• a detailed list of the transactions (or the general ledger entries) related to the expenses;
• an explanation of the reason for the travel;
• a copy of the invoices or receipts for the ten largest transactions included in travel expenses for each tax year; and
• a copy of any travel logs.

If the CRA does not receive the supporting documentation, they will disallow the travel deductions.

Normally the letter provides a 30 day deadline for a response. These letters are typically signed by a specific CRA officer, so if you require an extension, you will need to contact that officer to request more time. If you cannot reach the officer, you can always contact the CRA general business line.

If you are being reviewed for your travel expenses, or have questions about whether you are eligible to claim travel expenses, give R&A Tax Law a call today !  We can help you navigate this complicated review process. We are here to help!

**Disclaimer

This article provides information of a general nature only. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in this article. If you have specific legal questions you should consult a lawyer.

Related posts:

• Should I Keep a Logbook for my Expenses?
• Home Office Expenses and COVID-19
• What are Reasonable Business Expenses?
• Motor Vehicle Expenses
• The Tax Implications of Running a Personal Services Business

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What Qualifies As Medical Expenses When Filing Taxes?

Have you ever asked your pharmacist, “Can I claim prescriptions on taxes?” Yes, you can. And there are a number of other medical expenses the Canada Revenue Agency (CRA) allows you to claim.

If you’re managing health conditions, the last thing you need is the extra load of navigating tax rules on medical expenses. Understanding the CRA guidelines on medical expenses can feel like a lot, but knowing what qualifies can have a big impact your tax return.

The list of eligible expenses you can claim is long. Even the CRA stresses that its own list isn’t exhaustive; so chances are your medical expenses qualify when filing your taxes . Let’s jump into the essentials of claiming medical expenses.

• Medical expenses not covered by provincial or private health-care plans may save you money on your tax return.
• If you file your taxes jointly with a spouse or partner, it’s usually best to claim the medical expenses on the return with the lower net income.
• Save your medical receipts in case the CRA asks to see them.

Missed the deadline? Don’t stress.

You can still file your taxes on your own or with an expert. Our calculations are 100% accurate,  guaranteed *.

Which medical expenses are tax deductible?

According to the CRA medical expense list , a wide variety of medical expenses qualify as deductible. These range from public or private hospital services, nursing care, premiums paid to private health-care companies, physiotherapy, naturopathic services, and prescription drugs to more specific medical aids such as hearing aids, electrotherapy devices, eyeglasses, and heart-monitoring devices.

When claiming medical expenses on your tax return , it’s important that the costs haven’t already been paid by provincial or private plans. The amount you claim on your return must be the amount you paid out of your own pocket.

Are you wondering what other expenses you can claim? The list continues:

• Artificial limbs or eyes
• Contact lenses, including equipment and materials for using contacts
• Dental expenses
• Doctor or physician expenses (this varies by province; please visit the CRA for details)
• Insulin, needles, syringes, and infusion pumps to treat diabetes
• Insurance premiums for medical-care coverage through plans such as Blue Cross or Canada Life
• Laboratory fees
• Medical aids, including wheelchairs, hearing aids and batteries, eyeglasses, contact lenses, crutches, braces, and guide dogs (and their care)
• Pre- and post-natal treatments and in vitro fertility treatments
• Travel and hotel expenses to receive medical care outside your community (must keep track of mileage, date, and reason for visit)

If you don’t see your medical expenses on this list, the CRA offers a handy search feature you can use to check eligibility. Exploring the less-obvious deductible medical expenses opens up additional opportunities for tax savings, emphasizing the importance of thorough documentation and consultation with healthcare providers. These not-so-common claims, such as air purifiers and speech synthesizers, can further optimize your tax return.

Note: Receipts are required to claim all medical expenses (with the exception of mileage). Save all your receipts in case the CRA requests these at a later date.

Can medical expenses be carried forward?

Yes, you can carry forward medical expenses in Canada. If you have medical expenses that were not claimed in the previous year, they can be claimed on your tax return for the following year. This is helpful if you didn’t have enough expenses to benefit from the credit in the year the expenses were incurred.

To carry forward medical expenses they must be for a 12-month period ending in the taxation year you are filing. So, to that end, they can only be carried forward for one year.

For example, if you are preparing your 2023 tax return, and you have medical expenses paid in 2022 you’d like to claim, the 12-month period must end in 2023. If you didn’t have any medical costs in 2023, the 12-month period of January 2, 2022 to January 1, 2023 would let you claim the most expenses.

If you did have medical expenses in 2023, then you would want to use the 12-month period that captures the most medical expenses when considering your 2022 and 2023 medical costs. (For the 12-month period, the months need to be consecutive.)

Can I claim medical expenses for my family?

Yes, you or your spouse can claim medical expenses for your immediate family. This includes either partner’s children or stepchildren who are 18 years old or younger. These expenses should be listed on line 33099 of your tax return.

When others who aren’t your children or stepchildren depend on you for support, you can claim medical expenses you paid on their behalf as well. List those expenses on line 33199.

Any family members for whom you claim medical expenses must have been Canadian residents for all or part of the year.

Who in a couple should claim medical expenses?

For couples, the decision of who should claim medical expenses can involve some planning. Generally, it may be better for the partner with the lower income to make the claim, which maximizes the tax refund potential.

If you claimed medical expenses on line 33200 or the disability supports deduction on line 21500 on your return, you may be eligible for the medical expense supplement. This refundable tax credit is available to most working individuals with lower incomes and high medical expenses.

Is it worth claiming medical expenses on taxes in Canada?

Evaluating whether to claim medical expenses comes down to understanding their potential impact on your tax return. You can claim medical expenses for any 12-month period ending in the taxation year—but, in order for you to make a claim, your total eligible medical expenses must equal more than the lesser of 3% of your net income, or $2,635.

With the ability to carry forward some unclaimed expenses to the next year, planning becomes important in your tax strategy arsenal. Understanding how medical expenses are claimed is key to making informed decisions.

Claiming medical expenses on your tax returns in Canada can ease your tax burden. By learning what qualifies, leveraging tax credits , and planning for your situation, you can optimize your tax return. 

TurboTax makes this easy with a built-in medical-expense worksheet that guides you through the complexities of medical deductions, ensuring you don’t miss a single tax-saving opportunity.

File with confidence

Get advice and answers as you go, with a final tax expert review before you file.

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CRA denies taxpayer's medical expense credit for his visiting father's hospital stay

When his father fell ill while visiting Canada, son faced almost $19,000 in medical bills with no tax relief

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One of the more popular tax credits , claimed by more than five million Canadians annually, is the medical expense tax credit (METC) , which provides tax relief for qualifying above-average medical or disability-related expenses incurred by individuals on behalf of themselves, a spouse or common-law partner, or a dependent relative.

CRA denies taxpayer's medical expense credit for his visiting father's hospital stay Back to video

Under the Income Tax Act , you can claim a METC for expenses you paid for yourself, your spouse or partner, and your kids under age 18. The value of this federal credit is calculated by applying the lowest personal income tax rate (15 per cent) to the amount of qualifying medical expenses in excess of the lesser of three per cent of your net income or $2,759 (in 2024). The credit can be claimed for expenses paid in any period of 12 consecutive months that ends in the taxation year in which the claim is being made. There are also parallel provincial and territorial medical expense credits available at various rates and minimum spend thresholds.

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For medical expenses paid on behalf of dependent relatives other than minor children, you’re able to claim qualifying medical expenses that exceed the lesser of three per cent of the dependant’s net income or $2,759. For purposes of the METC, eligible dependants include adult (grand)children, (grand)parents, brothers, sisters, uncles, aunts, nephews and nieces provided they were dependent on you for support and were residents of Canada at any time in the year.

A tax case decided last month dealt with the METC related to medical expenses paid by a taxpayer for his father. In May 2019, the taxpayer’s father was on a visitor’s visa to Canada and planned to stay for approximately two weeks. Unfortunately, his father suffered a major heart attack and remained in hospital in Canada for eight weeks until July 2019.

During his hospital stay, he required acute and then rehabilitative medical care, which was not covered under the provincial health care system because his father wasn’t a resident of Canada. Sadly, he passed away in November 2021.

“Lest anyone think healthcare is ‘free’ in Canada,” the judge noted, the father’s health-care costs amounted to more than $18,700, which the taxpayer, as a “dutiful and caring son,” paid. The taxpayer proceeded to claim those expenses on his 2019 tax return as qualified medical expenses for a dependant — his father. The Canada Revenue Agency subsequently denied his claim, and the taxpayer objected and took the matter to Tax Court .

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The judge clearly articulated the law for claiming medical expenses for a dependant, breaking it down into its three components. To be able to claim the METC for a dependant, the recipient of the medical expense must be related in some way to the taxpayer. Second, the recipient must be dependent on the taxpayer for support. Finally, if the dependant is not a spouse or common-law partner or (grand)child of the taxpayer, they must be a relative who is “resident in Canada at any time in the year.”

The first condition was clearly satisfied since the taxpayer paid the medical expenses of his father, a qualifying relative. As far as dependency, the court found that during the father’s presence in Canada, he was “factually entirely dependent” upon his son. The amounts paid to support his father’s treatment, accommodation and rehabilitation in order to allow him to leave the hospital, and, ultimately, Canada, were all paid for by the taxpayer. Thus, the only contentious issue in the case was the residency test, specifically, the meaning of the phrase “resident in Canada at any time in the year.”

The taxpayer interpreted this phrase to mean “a person that is legally residing in Canada any time between Jan. 1 and Dec. 31 in a specific year.” Since his father was issued a legal visa for up to six months and he visited for about eight weeks, including his time in the hospital, the taxpayer argued that this should constitute residence in Canada. As a result, his father was a resident of Canada at the time of his eight-week stay, when the medical expenses were incurred.

The CRA disagreed , noting that the Income Tax Act, when it refers to residency in Canada as the basis for taxation, uses the common law definition of residency, which embodies the concept of “ordinarily resident in Canada.”

The judge noted that the term “resident in Canada at any time in the year” is found 17 times in the act, and, perhaps most importantly, is found in the main charging provision of the act in which residency forms the basis for taxation in Canada. In his view, to be “resident in Canada” for the purpose of claiming the METC for a dependant, “the normal rules of residency should be used which are otherwise applicable to other sections of the (act) to yield consistent application.”

In other words, the case comes down to whether the father could be considered a “factual resident of Canada” at any time in 2019. Since the purpose of the father’s trip was to visit his son and other family members in Canada for a finite amount of time, and, but for his heart attack, he would have returned home (his ordinary place of residence) after two weeks, there was simply no evidence to establish that the father was planning to stay in Canada.

As the judge wrote, the father “never converted or ever intended to convert his intentions, habits or domicile to Canada beyond a short visit, unavoidably delayed for an additional six weeks because of his heart attack. He was not a factual resident.”

As a result, the judge denied the taxpayer’s claim for the METC on the basis that his father, for whom he claimed the medical expenses, was not an ordinary resident of Canada.

Jamie Golombek , FCPA, FCA, CFP, CLU, TEP, is the managing director, Tax & Estate Planning with CIBC Private Wealth in Toronto. [email protected] .

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Meal and vehicle rates used to calculate travel expenses for 2021

If you are an employer, go to Automobile and motor vehicle allowances .

Meal and vehicle rates for previous years are also available.

The following applies to the 2021 tax year.

Meal expenses

If you choose the detailed method to calculate meal expenses, you must keep your receipts and claim the actual amount that you spent.

If you choose the simplified method , claim in Canadian or US funds a flat rate of $23/meal , to a maximum of $69/day (sales tax included) per person, without receipts. Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, we may still ask you to provide some documentation to support your claim.

Vehicle expenses

If you choose the detailed method to calculate vehicle expenses, you must keep all receipts and records for the vehicle expenses you incurred for moving expenses or for northern residents deductions during the tax year; or during the 12-month period you choose for medical expenses.

Vehicle expenses include:

• operating expenses such as fuel, oil, tires, licence fees, insurance, maintenance, and repairs
• ownership expenses such as depreciation, provincial tax, and finance charges

Keep track of the number of kilometres you drove in that time period, as well as the number of kilometres you drove specifically for the purpose of moving or medical expenses, or for the northern residents deductions. Your claim for vehicle expenses is the percentage of your total vehicle expenses that relate to the kilometres driven for moving or medical expenses, or for northern residents deductions.

For example, if you drove 10,000 km during the year, and half of that was related to your move, you can claim half of the total vehicle expenses on your tax return.

Although you do not need to keep detailed receipts for actual expenses if you choose to use the simplified method , we may still ask you to provide some documentation to support your claim. Keep track of the number of kilometres driven during the tax year for your trips relating to moving expenses and northern residents deductions, or the 12-month period you choose for medical expenses. To determine the amount you can claim for vehicle expenses, multiply the number of kilometres by the cents/km rate from the chart below for the province or territory in which the travel begins.

For more information, contact us .

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