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Changes to Canadian Automobile Deductions

Automobile Deductions

Automobile Deductions in 2022:

On December 23, 2021 – the Department of Finance Canada announced some changes to the automobile income tax deduction limits as well as expense benefit rates that apply in 2022.

Here’s a breakdown of the changes to limits and rates which were effective as of January 1, 2022:

*Keep in mind that for a zero-emission passenger vehicle to be eligible, it can be a plug-in hybrid with a battery capacity of at least 7 kWh, are fully electric or fully powered by hydrogen.

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