Line 25500 - Determine your maximum deduction
The maximum deduction you can claim for each eligible trip is the lowest of the following three amounts:
- either the taxable travel benefits you received from employment for the trip or the portion of the $1,200 standard amount for the person travelling (you or your eligible family member) that you allocate to the trip (enter the amount for whichever option you choose in Step 3, Chart B – column 3 of Form T2222)
Note
You can use the value of taxable travel benefits provided by your employer in the calculation in Step 3 if you meet both of the following conditions:
- You are an employee dealing at arm's length with your employer
- You had to include in your income (in the same year you have the travel expenses) the taxable travel benefits that you received from your employment in a prescribed zone
If you take a trip that begins and ends in one year and you are reimbursed the following year, you cannot claim the travel deduction for that trip. However, you can claim a travel deduction if you leave on a trip in one year and return the next year.
For example, you may leave on a trip in December and come back in January. If you receive non-refundable tickets or travel vouchers, the taxable travel benefit should be included in your T4 or T4A slip for the year the trip begins.
- the total travel expenses paid for the trip (enter the amount in Step 3, Chart B – column 4 of Form T2222)
- the cost of the lowest return airfare available at the time of the trip between the airport closest to your residence and the nearest designated city to that airport (enter the amount in Step 3, Chart B – column 5 of Form T2222)
If you or an eligible family member uses the standard amount to calculate a travel deduction in the year, $1,200 is the maximum total amount that may be claimed for each individual who travels, for all trips taken in the year by that individual.
Regardless of whether you or an eligible family member is claiming the travel deduction and whether trips were medical or non-medical, it is an amount per person, not per trip.
If you or an eligible family member uses the taxable travel benefit received from employment to calculate a travel deduction in a year for an individual, then no one (including the individual) can use any part of their $1,200 standard amount in calculating a travel deduction claim for any trip taken by that individual in that year.
You can claim a travel deduction even if you are not claiming a residency deduction. For example, if your spouse or common-law partner claims both the basic and the additional residency amounts, you can still claim a travel deduction.
You cannot claim a travel deduction if either of the following applies:
- You or your eligible family member received or was entitled to receive non-taxable amounts as travel assistance, as a travel allowance, or as a reimbursement for travel expenses
- Someone else has already claimed the travel deduction for this trip on their return
How many trips can you claim
You can claim up to two trips taken for non-medical reasons and up to two trips taken by each eligible family member.
You can also claim any number of medical trips taken by you or an eligible family member. However, no more than two non-medical trips taken by any individual (themself or an eligible family member) in a year can be claimed by all taxpayers combined.
Taxable travel benefits
Taxable travel benefits include:
- travel assistance, such as airline tickets or a trip on a company-owned airplane
- a travel allowance or lump-sum payment you received from your employer for travel expenses you incurred
Payments from your employer for travel that was not for employment purposes are generally considered taxable benefits. Box 32 of your T4 slip or box 028 of your T4A slip shows the taxable travel benefits you received in the year. This includes the benefits received specifically for medical travel which are shown in box 33 of your T4 slip or box 116 of your T4A slip.
You can use the benefit for medical travel in the calculation in Step 3, Chart B – column 3 of Form T2222 only if the medical services were for you or an eligible family member and were not available where you lived.
If you received a benefit that was not for any particular trip, you have to split it reasonably between the trips you are claiming.
Travel expenses
Travel expenses include:
- air, train, and bus fare
- vehicle expenses
- meals
- hotel or motel accommodations
- camping fees
- other incidental expenses such as taxis and road or ferry tolls
To calculate meal and vehicle expenses, you may choose the detailed or simplified method. Your total travel expenses equal the total of the value of travel assistance provided by your employer and the travel expenses incurred by you. Include any travel expenses paid by your employer. For more information about the detailed or simplified methods including the different rates, go to Meal and vehicle rates used to calculate travel expenses for 2023 or call 1-800-267-6999.
Note
If you are claiming expenses for a medical trip on Form T2222, no one (including you) can claim them as medical expenses on their return.
In cases of medical travel, if the patient needs an attendant while travelling, the attendant's travel expenses are included as part of the patient's total travel expenses. This includes travel assistance provided by your employer or actual expenses you incurred.
If the attendant was you or an eligible family member:
Include the cost of the attendant's lowest return airfare in Step 3, Chart B – column 5 of Form T2222, as part of the patient's expense for airfare. Include the cost of the attendant's travel expenses (excluding airfare) in column 4, as part of the patient's travel expenses.
If the attendant was not you or an eligible family member:
Do not include the cost of the attendant's lowest return airfare in column 5 as part of the patient's expense for airfare. Include the cost of the attendant's travel expenses (including airfare) in column 4 as part of the patient's travel expenses.
Lowest return airfare (LRA)
The LRA available at the time of the trip means the LRA ordinarily available for regularly scheduled commercial flights (excluding promotions or discounts that are not ordinarily available) on the date that the travel began. The airfare includes any airport tax, as well as goods and services tax / harmonized sales tax and provincial sales tax. Additional charges, such as flight cancellation insurance, meals, and baggage surcharges are not considered part of the lowest return airfare.
To complete column 5 in Chart B of Form T2222, Northern Residents Deductions, you must submit a lowest return airfare. To determine that airfare, you can use one of the following methods:
- Use the cost of airfare for a round trip from the airport closest to your residence to the nearest designated city. In case the Canada Revenue Agency (CRA) asks for proof of the cost, keep your receipts and any supporting documents.
- Use the amount in the lowest return airfare table which corresponds to your travel date and the airport closest to your residence. With this option, you do not need to have an airfare quote or any receipts or supporting documents.
| City | Province |
|---|---|
| Vancouver | British Columbia |
| Calgary | Alberta |
| Edmonton | Alberta |
| Saskatoon | Saskatchewan |
| Winnipeg | Manitoba |
| North Bay | Ontario |
| Toronto | Ontario |
| Ottawa | Ontario |
| Montréal | Quebec |
| Québec | Quebec |
| Moncton | New Brunswick |
| Halifax | Nova Scotia |
| St. John's | Newfoundland and Labrador |
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Example 1 – Using the airfare table
Charlie has been living in Rankin Inlet, Nunavut, for the past three years. They travelled from Rankin Inlet to Iqaluit, Nunavut, to visit family on February 28 and returned on March 16.
To calculate the travel deduction, Charlie needs to first figure out the three required amounts and enter them on Form T2222. The cost of their flights was $1,633 and they did not have any other travel expenses. Charlie received a taxable travel benefit from their employer of $1,000. Since Charlie did not take any other trips in the same year, they decide to use the full $1,200 standard amount instead of the taxable travel benefit they received from their employer, because that benefit is less than the $1,200 standard amount. Although Charlie did not travel to the nearest designated city nor did they leave the territory, they still have to determine the lowest return airfare (LRA) at the time of their trip. Charlie did not obtain a quote before they traveled. However, Charlie checks the table and uses the airfare table amount. The airfare table amount for Rankin Inlet to Winnipeg is $3,143.
Now that Charlie has obtained the three amounts, they can calculate their travel deduction. The maximum that Charlie can claim is the lowest of the following three amounts:
- the taxable travel benefit they received from their employer for the trip or the part of the $1,200 standard amount that Charlie allocated to that trip ($1,200)
- the total travel expenses paid for the trip ($1,633)
- the LRA available at the time of the trip between the airport closest to their residence and the nearest designated city to that airport ($3,143)
The CRA would accept Charlie’s amount for the LRA, because they chose to use the airfare table amount.
They will claim $1,200 for their trip, because it is the lowest of the three amounts.
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Example 2 – Travelling by charter
Alex has always lived in Aklavik, Northwest Territories. They travel to Edmonton, Alberta, for a vacation and it is the only trip they take in the year. Alex can only travel from Aklavik by charter. The cost of the charter flights to the nearest commercial airport in Inuvik and back was $2,600. The cost of the flights from Inuvik to Edmonton and back was $1,210. Edmonton also happens to be the nearest designated city when flying from Inuvik. Alex spent an additional $1,000 for travel expenses in Edmonton. Alex received $2,000 as a taxable travel benefit from their employer.
To calculate the travel deduction, Alex needs to first figure out the three required amounts and enter them on Form T2222. Since the taxable travel benefit Alex received from their employer is greater than the $1,200 standard amount, they decide to claim the taxable travel benefit. Alex bought economy tickets for the flights from Inuvik to Edmonton and back. Alex’s total flight expenses were $3,810. Their total travel expenses were $4,810.
Since Alex has all of the information they need, they can calculate their travel deduction. The maximum that Alex can claim is the lowest of the following three amounts:
- the taxable travel benefit they received from their employer for the trip or the portion of the $1,200 standard amount that Alex allocated to that trip ($2,000)
- the total travel expenses paid for the trip ($2,600 + $1,210 + $1,000 = $4,810)
- the lowest return airfare (LRA) available at the time of the trip, between the airport closest to his residence and the nearest designated city to that airport ($2,600 + $1,210 = $3,810)
The CRA would accept the amount of $3,810 as the LRA, because the charter flight was to the nearest commercial airport and the flight from Inuvik to Edmonton was to the nearest designated city. If Alex is selected for review, they will need to provide their receipts for the flights to support their claim for the LRA.
Alex claims $2,000 for this trip, because it is the lowest of the three amounts.
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Example 3 – Quote obtained before the day of travel
Chris has lived in Dawson City, Yukon, for the past 10 years. They drove to Whitehorse, Yukon, for a vacation and it is the only trip they took during the year. Chris left Dawson City on July 26 and returned on August 9. From their employer, Chris received a taxable travel benefit of $2,000 for their trip, and the total cost of their trip was $1,500.
Since Chris’s taxable travel benefit received from their employer is greater than the $1,200 standard amount, they decide to claim the taxable travel benefit. Even though Chris did not fly for their trip, and they did not leave the territory, they still have to determine the lowest return airfare (LRA). Chris got a quote before they left for their trip. They went online July 19 and got a quote of $1,000 for the lowest return airfare for July 26 (the day their trip began) to the nearest designated city.
- the taxable travel benefit they received from their employer for the trip or the portion of the $1,200 standard amount that Chris allocated to that trip ($2,000)
- the total travel expenses paid for the trip ($1,500)
- the LRA available at the time of the trip, between the airport closest to their residence and the nearest designated city to that airport ($1,000)
The CRA would accept the amount of $1,000 for the LRA, because the quote for the flight was for the lowest return airfare to the nearest designated city. If Chris was selected for review, they would need to send their documents to support their claim for the LRA.
Chris claims $1,000 for this trip, which is the lowest of the three amounts.
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Example 4 – Using an economy return airfare
Taylor has lived in Fort McMurray, Alberta, for two years. They decided to go to Edmonton, Alberta, for a vacation in March and it was the only non-medical trip they took in the year. Taylor decided to fly business class instead of economy. Their ticket cost $1,440 and their total expenses for the trip were $2,100. From their employer, Taylor received $1,500 as a taxable travel benefit for their trip. As Taylor did not get a quote for the lowest return airfare (LRA), and the actual cost of the flight they took was not economy class, Taylor claims the airfare table value of $894 for the LRA.
Taylor decides to claim the taxable travel benefit, because the $1,500 they received from their employer is greater than the $1,200 standard amount.
Since Taylor has all the information they need, they can calculate their travel deduction. The maximum that Taylor can claim is the lowest of the following three amounts:
- the taxable travel benefit they received from their employer for the trip or the portion of the $1,200 standard amount that Taylor allocated to that trip ($1,500)
- the total travel expenses paid for the trip ($2,100)
- the LRA available at the time of the trip, between the airport closest to their residence and the nearest designated city to that airport (Taylor claims the table value for the LRA of $894, rather than incorrectly claiming the cost of their business class tickets.)
Taylor claims $894 for this trip, because it is the lowest of the three amounts.
Since Taylor lives in a prescribed intermediate zone, their total travel deduction is one-half ($447) of the total of the lowest amounts for each trip they took ($894).
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Example 5 – How to calculate the travel deduction
Edward, Anna, and their two children are a family of four. They took a two week vacation and drove from Yellowknife to Edmonton in March 2022.
Edward received a $900 taxable travel benefit from his employer, which is an arms-length employer. He calculated his family’s travel expenses using the simplified method:
- Simplified cost to drive round-trip to Edmonton = 2,950 km x 0.675 (cents per km from Northwest Territories) = $1,911.25
- Accommodations cost = $600 (receipts always required)
- Simplified cost of meals for 4 people = $69 (meal rate per day per person) x 4 people x 14 days travelling = $3,864 or $966 per person
- $6,455 total travel expenses split between the eligible family members for Column 4
As Edward did not get a quote on or before the day of travel and he did not fly, he used the LRA amount available in the CRA’s airfare tables on canada.ca/lowest-return-airfare for the trip.
The LRA in the airfare table for a flight from Yellowknife to the nearest designated city, which is Edmonton, in March 2022 is $923.
Since the LRA is the lowest of the three amounts, Edward will claim a total of $3,692 (the LRA for each person x 4 people traveling).
Chart A - Description
Screenshot of Chart A on form T2222. For line A, the travelers are identified as Edward, Anna, Child 1, and Child 2. For line B, Edward (name 1) is claiming the standard amount of $1,200 (amount 1) for each of the four travelers. For line C, the total amount in row B is identified as $1,200 for each traveler.
Chart B - Description
Screenshot of Chart B on form T2222. Under column 1, the travelers are identified as Edward, Anna, Child 1, and Child 2. Under column 2, the word vacation has been included as the purpose of the trip for each traveler. Under column 3, the standard amount of $1,200 has been included for each traveler. Under column 4, Edward is claiming $2,957, Anna is claiming $1,566, Child 1 is claiming $966, and Child 2 is claiming $966. Under column 5, $923 has been included as the cost of the lowest return airfare for each traveler. Under the Zone A column, $923 has been identified as the lowest amount from column 3, 4 or 5 for each traveler, for a total of $3,692 (box A). Box B is left empty. The total from box A ($3,692) plus the total from box B ($0) is $3,692, which is the final amount of the travel deduction that can be claimed for this trip.
Note: Individual expenses should be put under a specific family member where applicable (for example, the cost of a meal or an airline ticket).
Common expenses cannot be split and should be put under the person who paid the expense (or their spouse or common-law partner). In the example, Edward claimed the mileage expense and Anna claimed the accommodation expense.
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