Answer a few questions to determine whether there is a taxable benefit.

Questions and answers

Employer-provided parking is usually a taxable benefit for an employee, whether or not the employer owns the lot. The amount of the benefit is based on the fair market value of the parking, minus any payment the employee makes to use the space.

There are some exceptions to the taxability of parking:

  • If your employee has a disability, the parking benefit is generally not taxable. For more information, see Disability-related employment benefits
  • There is no taxable benefit for your employee when both of the following conditions are met:
    • you provide parking to your employee for business purposes
    • your employee regularly has to use their own automobile or one you usually supply to do their duties

      Travel between work and home is not considered travel for business purposes.

We do not require you to include a benefit in your employee's income in the following situations:

  • A business operates from a shopping centre or industrial park where parking is available to both employees and other people
  • You provide scramble parking (there are significantly fewer spaces available than there are employees who want parking). For more information on scramble parking, go to Examples – Scramble Parking


If you provide enough parking spaces for all employees who want parking, but do not assign the parking spaces to individual employees, this is not scramble parking. You must add the benefit to the employee's remuneration.

To determine if an employee has received a benefit, the facts of each case must be examined. If you are not sure if employer-provided parking is a taxable benefit, contact us.

Payroll deductions

If the benefit is taxable, deduct CPP contributions and income tax. If the taxable benefit is paid in cash, deduct EI premiums. If it is a non-cash benefit, do not deduct EI premiums.

Reporting the benefit

Report the taxable parking benefit on a T4 slip, in box 14 "Employment income" and in the "Other information" area under code 40 at the bottom of the slip. For more information, go to T4 – Information for employers.


Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: