Procedures on Travel - Appendix B – Application of the Residence Rule
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Procedures on Travel: Appendix B – Application of the Residence Rule
Notice to readers
Many of the policy instruments referenced in the Procedures on Travel are only available to CRA employees.
Normal mode of commute: privately owned vehicle
Step 1:
Visit the Maps and Weather section of the Travel page to determine if the principal residence is inside or outside the HQ area. Using Google Maps, input both the address of the principal residence and the workplace, and select the most direct, safe, and practical road route.
Step 2:
If the principal residence is more than 16 km from the workplace (outside the HQ area), the Residence Rule will apply. Proceed to step 3. If the principal residence is equal to or less than 16 km from the workplace, the Residence Rule does not apply (inside the HQ area) and there is no need to proceed with step 3 and 4 below.
Step 3:
Determine if the first or last point of call is within the HQ area. If the point of call is equal to or less than 16 km from the workplace, proceed to step 4. If the point of call is more than 16 km from the workplace, the Residence Rule does not apply. For assistance with the calculations please see the Mileage calculator on KnowHow.
Step 4:
First, determine the Residence Rule constant distance factor by using calculation A. Then, determine the calculated distance paid by using calculation B.
Calculation A – Constant distance factor
Do the following calculations by inserting the applicable distances (see example below)
Example
POC = Point of call
R = Principal Residence
WP = Workplace
| From the R to WP is _____km | (25 km) |
| Less: Perimeter to WP is _____km | (16 km) |
| Constant distance factor is _____km | (9 km) |
Calculation B – Calculated distance reimbursed
Do the following calculations by inserting the applicable distances (see examples below)
Example 1
| R to POC 1 _____km | (20 km) |
| Less: Constant distance factor _____km | (9 km) |
| Calculated distance reimbursed is _____km | (11 km) |
Example 2
| R to POC 2 _____km | (35 km) |
| Less: Constant distance factor _____km | (9 km) |
| Calculated distance reimbursed is _____km | (26 km) |
Illustration: Perimeter of the HQ area
Principal residence inside the HQ area
POC = Point of call
R = Principal residence
WP = Workplace
Scenario 1: R to WP (12 km)* to R (12 km)*
Actual distance driven: 24 km
Distance reimbursed: 0 km
*Distance not reimbursed: 24 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 2: R to WP (12 km)* to POC 1 (5 km) to R (20 km)
Actual distance driven: 37 km
Distance reimbursed: 25 km
*Distance not reimbursed: 12 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 3: R to WP (12 km)* to POC 1 (5 km) to WP (5 km) to R (12 km)*
Actual distance driven: 34 km
Distance reimbursed: 10 km
*Distance not reimbursed: 24 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 4: R to WP (12 km)* to POC 1 (5 km) to POC 2 (25 km) to POC 3 (10 km) to R (12 km)*
Actual distance driven: 64 km
Distance reimbursed: 52 km
*Distance not reimbursed: 12 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 5: R to WP (12 km)* to POC 1 (5 km) to POC 2 (25 km) to WP (20 km) to R (12 km)*
Actual distance driven: 74 km
Distance reimbursed: 50 km
*Distance not reimbursed: 24 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 6: R to WP (12 km)* to POC 2 (20 km) to POC 1 (25 km) to POC 3 (12 km) to R (12 km)
Actual distance driven: 81 km
Distance reimbursed: 69 km
*Distance not reimbursed: 12 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 7: R to WP (12 km)* to POC 2 (20 km) to POC 1 (25 km) to POC 3 (12 km) to WP (8 km) to R (12 km)*
Actual distance driven: 89 km
Distance reimbursed: 65 km
*Distance not reimbursed: 24 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 8: R to POC 1 (20 km) to R (20 km)
Actual distance driven: 40 km
Distance reimbursed: 40 km
Scenario 9: R to POC 1 (20 km) to POC 2 (25 km) to POC 3 (10 km) to R (12 km)
Actual distance driven: 67 km
Distance reimbursed: 67 km
Principal residence outside the HQ area
POC = Point of call
R = Principal residence
WP = Workplace
Scenario 10: R to WP (25 km) to R (25 km)
Actual distance driven: 50 km
Distance reimbursed: 0 km
R to WP (25 km)* and to R (25 km)*
*Distance not reimbursed: 50 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 11: R to WP (25 km) to POC 1 (5 km) to R (20 km)
Actual distance driven: 50 km
Distance reimbursed: 16 km
Constant distance factor is 9 km (25 km less 16 km) - see the application of the Residence Rule, calculation A.
R to WP (25 km)*, to POC 1(5 km) and to R (the calculated distance reimbursed is 11 km [20 km less 9 km])*
*Distance not reimbursed: 34 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 12: R to WP (25 km) to POC 1 (5 km) to WP (5 km) to R (25 km)
Actual distance driven: 60 km
Distance reimbursed: 10 km
R to WP (25 km)*, to POC 1(5 km), to WP (5 km) and to R (25 km)*
*Distance not reimbursed: 50 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 13: R to WP (25 km) to POC 1 (5 km) to POC 2 (25 km) to POC 3 (10 km) to R (35 km)
Actual distance driven: 100 km
Distance reimbursed: 66 km
Constant distance factor is 9 km (25 km less 16 km); see the application of the Residence Rule, calculation A.
R to WP (25 km)*, to POC 1(5 km), to POC 2 (25 km), to POC 3 (10 km) and to R (the calculated distance reimbursed is 26 km [35 km less 9 km])*
*Distance not reimbursed: 34 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 14: R to WP (25 km) to POC 1 (5 km) to POC 2 (25 km) to WP (20 km) to R (25 km)
Actual distance driven: 100 km
Distance reimbursed: 50 km
R to WP (25 km)*, to POC 1(5 km), to POC 2 (25 km) to WP (20 km) and to R (25 km)*
*Distance not reimbursed: 50 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 15: R to WP (25 km) to POC 2 (20 km) to POC 1 (25 km) to POC 3 (12 km) to R (35 km)
Actual distance driven: 117 km
Distance reimbursed: 83 km
Constant distance factor is 9 km (25 km less 16 km) - see the application of the Residence Rule, calculation A.
R to WP (25 km)*, to POC 2 (20 km) to POC 1 (25 km), to POC 3 (12 km) and to R (calculated distance reimbursed is 26 km [35 km less 9 km])*
*Distance not reimbursed: 34 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 16: R to WP (25 km) to POC 2 (20 km) to POC 1 (25 km) to POC 3 (12 km) to WP (8 km) to R (25 km)
Actual distance driven: 115 km
Distance reimbursed: 65 km
R to WP (25 km)*, to POC 2 (20 km), to POC 1 (25 km), to POC 3 (12 km) to WP (8 km) and to R (25 km)*
*Distance not reimbursed: 50 km
The distance driven between the principal residence and the workplace is not reimbursed.
Scenario 17: R to POC 1 (20 km) to R (20 km)
Actual distance driven: 40 km
Distance reimbursed: 22 km
Constant distance factor is 9 km (25 km less 16 km) - see the application of the Residence Rule, calculation A.
R to POC 1(calculated distance reimbursed is 11 km [20 km less 9 km])* and to R (the calculated distance reimbursed is 11 km [20 km less 9 km])*
*Distance not reimbursed: 18 km
Scenario 18: R to POC 1 (20 km) to POC 2 (25 km) to POC 3 (10 km) to R (35 km)
Actual distance driven: 90 km
Distance reimbursed: 72 km
Constant distance factor is 9 km (25 km less 16 km)-see the application of the Residence Rule, calculation A.
R to POC 1(the calculated distance reimbursed is 11 km [20 km less 9 km])*, to POC 2 (25 km), to POC 3 (10 km) and to R (calculated distance reimbursed is 26 km [35 km less 9 km])*
*Distance not reimbursed: 18 km
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2025-07-07