What does T4 Code 32 (Travel in a prescribed zone) mean?

Employer-paid travel benefits for workers in Northern or Intermediate prescribed zones — needed to claim the Northern Residents travel deduction. Code 32 shows the taxable value of travel benefits (flights, drives) your employer provided or reimbursed for workers living in a prescribed Northern or Intermediate zone.

Where do I report T4 Code 32 on my tax return?

Code 32 flows to Line 25500 — Northern Residents deductions (when claiming travel benefits) on your T1 general return.

T4 Code 32 — Travel in a prescribed zone

Employer-paid travel benefits for workers in Northern or Intermediate prescribed zones — needed to claim the Northern Residents travel deduction.

At a glance — Code 32

Box name: Travel in a prescribed zone
T1 line: Line 25500 — Northern Residents deductions (when claiming travel benefits)
Check against: Your T2222 workings — lowest of: (a) Code 32 amount, (b) actual travel cost, (c) lowest return airfare.

What Code 32 means

Code 32 shows the taxable value of travel benefits (flights, drives) your employer provided or reimbursed for workers living in a prescribed Northern or Intermediate zone.

Residents of a prescribed zone for at least 6 consecutive months can claim a travel deduction on Line 25500 using Form T2222. The deduction is limited to the lowest of: the Code 32 amount, actual travel cost, or the lowest return airfare to the nearest designated city.

As of 2021, up to 2 trips per year (plus unlimited medical) can be claimed for each family member, and a standard $1,200 per person per trip is available if no employer travel benefit was provided.

Tax return implications

Required to claim employer-provided travel on Line 25500 — without Code 32, you default to the $1,200 standard amount.
Pairs with Code 33 (medical travel in prescribed zone) if applicable.

FAQ

Can I claim the northern travel deduction without Code 32 on my T4?

Yes — as of 2021 you can claim a $1,200 standard amount per trip for up to 2 trips per year per person even if your employer did not provide travel benefits. Code 32 is only required if you want to claim actual employer-provided travel above the standard amount.

Related T4 boxes

Code 30 — Board and lodging

Taxable value of employer-provided meals and accommodation — already included in Box 14 via Box 40.

Code 31 — Special work site (board & lodging exempted)

Value of board and lodging at a qualifying special work site — reported for reference, not taxable.

Code 34 — Personal use of employer's automobile

Taxable benefit from a company vehicle — standby charge + operating benefit — already included in Box 14.

Code 36 — Interest-free or low-interest loan

Imputed interest benefit from an employer loan below the CRA prescribed rate — taxable, already in Box 14.

Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.

Sources

T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).