Limits and Rates Related to the Use of an Automobile for 2025 | Revenu Québec

Limits and Rates Related to the Use of an Automobile for 2025 | Revenu Québec

Limits and Rates Related to the Use of an Automobile for 2025

The limits and rates used to determine deductible automobile expenses and calculate taxable benefits relating to the use of an automobile for 2025 are as follows:

• The deductible limit for tax-exempt allowances paid by employers to employees is increased to $0.72/km for the first 5,000 kilometres travelled and $0.66/km for additional kilometres. For the Yukon, the Northwest Territories and Nunavut, the deductible limit for tax-exempt allowances paid by employers to employees is increased to $0.76/km for the first 5,000 kilometres travelled and $0.70/km for additional kilometres.
• The prescribed amount used to determine the value of the taxable benefit an employee receives for the personal portion of the operating costs of an automobile provided their employer is increased to $0.34/km. For taxpayers whose main occupation is selling or leasing automobiles, the prescribed amount is increased to $0.31/km.
• The maximum capital cost of non-zero-emission passenger vehicles for capital cost allowance purposes is increased to $38,000 (before GST and QST) for vehicles purchased after 2024.
• The maximum capital cost of eligible zero-emission passenger vehicles for capital cost allowance purposes remains at $61,000 (before GST and QST) for vehicles purchased after 2024. Eligible zero-emission passenger vehicles include plug-in hybrids with a battery capacity of at least 7 kWh and vehicles that are fully electric or fully powered by hydrogen.
• The deductible limit for interest paid on amounts borrowed to purchase a passenger vehicle remains at $350/month for loans related to vehicles purchased after 2024.
• The deductible limit for leasing expenses is increased to $1,100/month (plus GST and QST) for leases entered into after 2024.