Free parking is a nice workplace perk, but the taxman still wants his cut
When it comes to what’s taxable, meaning what will factor into how much taxable income you will be assessed upon by the CRA, a lot of people forget about perks and benefits. Take free parking, for example. While some employers offer it to employees, in many areas, parking carries a monetary value. Over the years, there have been many challenges to the taxability of employer-provided parking. A recent case again challenged it, but the courts stated that parking and commuting to work is an ordinary personal expense, which means it is a taxable benefit.
“Even if you’re among the lucky workers who still get free parking at your place of employment, it’s often not truly free as the taxman generally considers free parking to be a taxable employment benefit.”