T4 Code 34 — Personal use of employer's automobile
Taxable benefit from a company vehicle — standby charge + operating benefit — already included in Box 14.
At a glance — Code 34
- Box name
- Personal use of employer's automobile
- T1 line
- Not reported on T1 directly
- Check against
- Your mileage log: total km driven vs personal-use km; the standby-charge formula uses the ratio.
What Code 34 means
Code 34 reports the taxable benefit from having an employer-provided vehicle available for personal use. It has two components: the standby charge (deemed availability) and the operating-expense benefit (gas, maintenance paid by employer).
The standby charge is generally 2% of the vehicle's cost per month available, or 2/3 of the lease cost per month. If personal use is less than 50% AND you drive the vehicle primarily for employment (over 20,004 km/year business), the reduced standby charge applies — prorated for personal km.
The operating-expense benefit is 33 cents per personal-use kilometre (CRA-set annually; see CRA IT-63R5 for the current year). If personal use is under 50%, you can elect the "alternate method" — half the standby charge.
Tax return implications
- Already in Box 14 and Box 40 — do not add to Line 10100.
- Keep a detailed mileage log for the whole year — CRA audits Code 34 benefits heavily.
- If your personal-use fraction dropped (e.g., COVID year), ask payroll to recalculate — the benefit may be materially lower.
FAQ
Can I reduce my Code 34 benefit by paying my employer for gas?
Yes. Any amount you pay the employer out-of-pocket for operating costs (gas, maintenance) within 45 days of year-end reduces the operating-expense benefit dollar-for-dollar. Payments for personal-use standby are limited to reducing the standby charge portion.
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 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.
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).