Automobile Allowances vs. Company Cars: Payroll Tax Comparison

Providing a vehicle to employees? The tax treatment depends on whether it's an allowance or a company car.

PayrollBuddy forecasts Canadian take-home pay using published 2026 federal and provincial payroll formulas. All figures are estimates, not payroll, tax, legal or financial advice. PayrollBuddy does not advance wages and does not lend money, and is not affiliated with the Canada Revenue Agency.