Business -> Automobiles, Passenger Vehicles and Motor Vehicles -> Automobile Taxable Benefits -> Employee Parking
Employee Parking Provided by Employer
Income Tax Act s. 6(1)(a)
When parking is provided by an employer to an employee, the fair market value of the parking, less any payment by the employee for the parking, is generally a taxable benefit to the employee. The benefit amount should be included in income when payroll deductions for income tax, Canada Pension Plan (CPP) and Employment Insurance (EI) are calculated, and is included as employment income on the T4.
There are situations in which parking may not be considered a taxable benefit, such as:
The taxable fair market value of the parking spot is generally the market price for a similar spot in the surrounding area. Therefore, if a similar spot in the surrounding area is free, there is no taxable benefit.
If the employer provides certain employees with reserved spots, this would probably be considered a taxable benefit.
All topics related to vehicles and business
Canada Revenue Agency (CRA) Resources
Podcasts: Episode 3 - Parking as a Taxable Benefit
Parking - has a questionnaire to help you determine if an employer-provided parking spot is a taxable benefit.
Tax Tip: Make sure you know the tax status of your parking privileges!
Revised: May 23, 2018
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