--- title: "Standby Charge Calculator: Company Car Taxable Benefit 2026" url: https://www.everstonecpa.com/vehicle-benefit-calculator description: "Free standby charge calculator for 2026: enter the car’s cost, personal kilometres and months available to see the taxable car benefit. Try it." type: tool updated: 2026-10-06 summary: "A corporation-owned vehicle creates a taxable benefit on your T4. Estimate both parts of it before you buy the car, not after." faq_count: 8 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) Company car taxable benefit calculator [Home](https://www.everstonecpa.com/) [Free tools](https://www.everstonecpa.com/tools) Automobile benefit Automobile benefit # Company car taxable benefit *calculator* Updated 6 October 2026 **Quick answer:** A corporation-owned vehicle creates a taxable benefit on your T4. Estimate both parts of it before you buy the car, not after. **Company car, or a car allowance?** We calculate the standby charge and operating benefit, put them on the T4 and keep the logbook rules straight, with payroll included in bookkeeping from $325 a month. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) How the standby charge and operating benefit are worked out: [company car taxable benefit explained](https://www.everstonecpa.com/blog/company-car-taxable-benefit-canada). The estimate is only as good as the kilometres behind it, and the log is what a review asks for. [Ask a CPA to check your figures](https://www.everstonecpa.com/quick-question). Vehicle cost including GST and PST Months the vehicle was available to you Personal kilometres in the year Total kilometres in the year Opens your own email app with the numbers filled in — add your question and a CPA replies, usually the same business day. General estimates, not tax advice. Rates change and your result depends on details a calculator cannot capture; we confirm the numbers once we review your enquiry. **Nothing you type here leaves your browser.** This calculator runs entirely on your device — no figures are sent to us or to anyone else. What this calculator answers **What taxable benefit goes on the T4 for an employee or owner driving a company-owned vehicle?** Any corporation with a company-owned vehicle, a common audit item. It models owned vehicles; leases use a different standby charge. ## A worked example These are the numbers already in the calculator above, so you can follow the arithmetic against the result it is showing. Worked example The values the page loads with: a $55,000 vehicle, 12 months, 8,000 personal km of 30,000 total | Step | Figure | | Full standby charge | 2% × $55,000 × 12 months = $13,200 | | Business use | (30,000 − 8,000) ÷ 30,000 = 73% — above the 50% test | | Personal km test | 8,000 is below 1,667 × 12 = 20,004, so the reduction applies | | Reduced standby charge | 8,000 ÷ 20,004 × $13,200 = $5,279 | | Operating benefit | 8,000 personal km × $0.34 = $2,720 | | Total taxable benefit | ≈ $7,999 on the T4 | ## What it assumes, and where it stops Every estimate rests on assumptions. These are the ones that would change your number most. Assumptions and limits Where this estimate stops being reliable | Assumption | What it means for your number | | A kilometre log exists | Every reduction above depends on personal and total kilometres. With no log, the CRA can assess the full standby charge — here, $13,200 instead of $5,279. | | The vehicle is owned, not leased | A leased vehicle uses two-thirds of the lease cost rather than 2% of cost. | | Both reduction tests are met | The reduced standby charge needs business use above 50% AND personal kilometres under 1,667 per month. Failing either gives the full charge. | | The operating benefit has an alternative | Where business use exceeds 50%, half the standby charge can be elected instead of the per-kilometre rate — but the election has a deadline. | General information, not advice. [Have a CPA confirm it for your situation](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) Two conditions, both required, and a single kilometre decides it. ## The automobile benefit is two benefits, not one A company car creates **two** [taxable benefits](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances.html). The **[standby charge](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4130.html)** is 2% of the original cost (including GST and PST) for each month it is available to you, driven or not. The **operating benefit** is 34 per personal kilometre for 2026, for company-paid running costs. This standby charge calculator works out the 2% monthly charge and the operating benefit together, so both parts of the T4 benefit show in one result. ## The reduced standby charge is the whole game If business use is **at least 50%** *and* personal driving stays under **1,667 km per month** (20,004 a year), the standby charge is prorated by personal use. Miss either by one kilometre and the full 2% a month applies. Enter your business and personal kilometres in the auto benefit calculator above to see whether both conditions for the reduced standby charge are met. ## Personal use of a company vehicle: before you buy the car Run the number first. On an expensive vehicle with meaningful personal use, the taxable benefit frequently exceeds what you would have received as a [per-kilometre allowance](https://www.everstonecpa.com/blog/vehicle-mileage-deductions-canada-business) for using your own car. That allowance is 73 for the first 5,000 km and 67 after that, paid tax-free to you and deductible to the company. That comparison, not the purchase price, is the real decision. [The full guide to company cars](https://www.everstonecpa.com/blog/company-car-taxable-benefit-canada) Embed this calculator Free to use on your own site — the snippet keeps a credit link back to this page.

Calculator by EverStone CPA

Common questions ## Automobile benefit calculator FAQ **How is the standby charge calculated?** For an owned vehicle it is 2% of the original cost including GST and PST, for each month the vehicle is available to you. For a leased vehicle it is two-thirds of the lease payments, excluding insurance. [Ask about your case →](https://www.everstonecpa.com/quick-question) **What is the reduced standby charge?** If business use is at least 50% of total kilometres and personal driving is under 1,667 km per month (20,004 km a year), the standby charge is prorated by actual personal use. Both conditions must be met. **What is the operating benefit rate for 2026?** 34 cents per personal kilometre for 2026 (31 cents for employees principally employed in selling or leasing automobiles). Alternatively, if business use is at least 50% and you elect in writing before year-end, the operating benefit can be calculated as 50% of the standby charge. **Is a company car worth it?** Often not, once the taxable benefit is counted — particularly for an expensive vehicle with significant personal use. Many owner-managers do better keeping the vehicle personally and having the corporation pay a per-kilometre allowance. Run both before deciding. **Do I need a logbook?** Yes. The business/personal split drives both benefits, and without a contemporaneous logbook the CRA will generally treat use as personal. A simple app or a notebook in the glovebox is enough, provided it is kept as you go. **How do I read the benefit amount this calculator produces?** It is a taxable benefit added to the user’s income on a T4, not a cash cost to the corporation. It raises that person’s tax and affects payroll withholding during the year, so budget for both. **What does the vehicle benefit calculator not account for?** It ignores GST/HST on the benefit, provincial differences, reimbursements that reduce it, and vehicles that are motor vehicles rather than automobiles under CRA definitions; check a pickup or van before buying. **Is this the same as the CRA’s automobile benefits online calculator?** Both work out the same two amounts for personal use of a company vehicle: the standby charge and the operating benefit. This one shows the effect of personal kilometres and months available side by side so you can plan; the figure reported on the T4 should come from your payroll records. ## Related reading Guides and tools that go deeper on what this page covers. [T2057: Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation](https://www.everstonecpa.com/forms/t2057) [Taxable vs non-taxable benefits what goes on the T4](https://www.everstonecpa.com/blog/taxable-vs-non-taxable-benefits-canada) [Multiple corporations: when a second company makes sense](https://www.everstonecpa.com/blog/multiple-corporations-when-it-makes-sense) [Mileage and vehicle log template](https://www.everstonecpa.com/mileage-and-vehicle-log) ## Want these numbers confirmed for your business? Send an enquiry to a Fraser Valley CPA. We will check the figures against your actual situation and quote a fixed fee. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies by email within one business day. For a proper look, a 45-minute **Advice Call** with a CPA is $225 plus GST, booked by email, credited against your first invoice if you become a client within 60 days. Want an accountant to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “…He is very knowledgeable and has saved me tons in taxes by restructuring my group of companies — the best accountant I've worked with in the last 10 years, after switching from three different firms.” Matt Hildebrandt · Google review --- Source: https://www.everstonecpa.com/vehicle-benefit-calculator Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online