T4 Code 32 — Travel in a prescribed zone
Employer-paid travel benefits for workers in Northern or Intermediate prescribed zones — needed to claim the Northern Residents travel deduction.
At a glance — Code 32
- Box name
- Travel in a prescribed zone
- T1 line
- Line 25500 — Northern Residents deductions (when claiming travel benefits)
- Check against
- Your T2222 workings — lowest of: (a) Code 32 amount, (b) actual travel cost, (c) lowest return airfare.
What Code 32 means
Code 32 shows the taxable value of travel benefits (flights, drives) your employer provided or reimbursed for workers living in a prescribed Northern or Intermediate zone.
Residents of a prescribed zone for at least 6 consecutive months can claim a travel deduction on Line 25500 using Form T2222. The deduction is limited to the lowest of: the Code 32 amount, actual travel cost, or the lowest return airfare to the nearest designated city.
Since 2021 you can claim up to 2 non-medical trips per person per year (plus any number of medical trips), and a $1,200 standard amount is available where no employer travel benefit is used. The $1,200 is per person per year, not per trip — you allocate one person's $1,200 across all the trips you claim for them. It is also all-or-nothing per person: if you use an individual's taxable travel benefit for any trip in the year, nobody can use any part of that individual's $1,200 for any trip that year.
Tax return implications
- Required to base a Line 25500 travel claim on employer-provided travel — without Code 32, you fall back on the $1,200 per-person standard amount.
- Pairs with Code 33 (medical travel in prescribed zone) if applicable.
FAQ
Can I claim the northern travel deduction without Code 32 on my T4?
Yes — since 2021 a $1,200 standard amount is available per person per year (allocated across the trips you claim for that person) even if your employer provided no travel benefit. Code 32 only matters if you want to base the claim on the employer-provided travel benefit instead, which is usually worth doing when that benefit exceeds $1,200 for the person travelling.
Related T4 boxes
Code 30 — Board and lodging
Taxable value of employer-provided meals and accommodation — already included in Box 14 via Box 40.
Code 31 — Special work site (board & lodging exempted)
Value of board and lodging at a qualifying special work site — reported for reference, not taxable.
Code 34 — Personal use of employer's automobile
Taxable benefit from a company vehicle — standby charge + operating benefit — already included in Box 14.
Code 36 — Interest-free or low-interest loan
Imputed interest benefit from an employer loan below the CRA prescribed rate — taxable, already in Box 14.
Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.
Sources
T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).
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