Allowances for Members of Legislative Assemblies and Certain Municipal Officers

Generally, a non-accountable allowance paid to an employee is considered a taxable benefit and is included in income for tax purposes.

Within a certain limit, an income tax exemption is currently available for non-accountable allowances for work-related expenses received by the following officials:

• elected members of provincial and territorial legislative assemblies and offices of incorporated municipalities;
• officers, elected by popular vote, of municipal utilities boards, commissions, corporations or similar bodies; and
• members of public or separate school boards or of similar bodies governing a school district.

For 2019 and subsequent taxation years, Budget 2017 proposes that the full amount of the non-accountable allowances paid to these officials will be included in income.

The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its webpages often. All new forms, policies, and guidelines will be posted as they become available.

In the meantime, please consult the Department of Finance Canada's Budget 2017 documents for details.