A parking spot at work is considered taxable income?
Answer a few questions to determine whether there is a taxable benefit.
Employer-provided parking is usually a taxable benefit for an employee. The amount of the benefit is based on the fair market value (FMV) (external - login to view) of the parking, minus any amount the employee pays to use the space. You have to include any GST/HST that applies to the value of this benefit.
There are some exceptions to the taxability of parking:
- If the employee has a disability, the parking benefit is generally not taxable, see Disability-related employment benefits (external - login to view).There is no taxable benefit for an employee when both of the following conditions are met:
- You provide parking to your employee for business purposes (external - login to view).
- Your employee regularly (external - login to view) has to use his or her own automobile or one you usually supply to do his or her duties.
Travel between work and home is not considered travel for business purposes.
Do not include a benefit in the employee's income in the following situations:
- A business operates from a shopping centre or industrial park where parking is available free of charge to both employees and other people.
- An employer provides scramble parking (external - login to view). Scramble parking is still a benefit to the employee, but in the absence of the ability to accurately assign a value to the benefit because of the random or uncertain nature of it, a benefit is not included in income. For examples, see Examples of Scramble Parking (external - login to view).