The climbing costs of fuel have resulted in the governments of Canada and the United States to increase their allowable mileage rates. Business owners that charge mileage rates to their clients use these government guidelines to properly set their mileage rate in their contracts.
The New 2022 Mileage Rates are:
$0.61/km in Canada (from the CRA – Canada Revenue Agency)
$0.625/mile in USA (from the IRS – Internal Revenue Service)
The standard practice for Wedding Planners is to charge a mileage rate to clients after you need to drive more than 100km/60 miles from your operating area.
Whether you choose to charge a mileage rate is up to you. Some people choose to charge mileage after 50 km. Some choose to charge more than the government guideline. As with everything, your business = your choice. Just please note, if you charge more than the Mileage Rate set by the government, you will need to pay income tax on the amount you were reimbursed for mileage.
Leave a Reply