Travel Allowance Tax Calculator South Africa 2026/2027

Reviewed & Verified
Written by the Independent Editorial Team · Reviewed & Verified by Solly Maanaso, CA(SA)

Calculate the deductible cost of your business travel using the official SARS deemed cost table, or check your per-kilometre reimbursement.

Step 1 — Which type of travel allowance do you have?
A fixed monthly travel allowance
(paid regardless of actual kilometres travelled)
A reimbursive allowance
(paid based on actual business kilometres)
A logbook is required for any travel allowance claim, in either scenario. Travel between your home and your normal place of work is always private travel and can never be claimed, no matter how the allowance is structured.
Source: SARS Budget 2026 FAQ; SARS — Travel e-Logbook page
This calculator provides an estimate only, based on the SARS deemed cost table effective 1 March 2026. Your actual deductible amount is finalised on assessment (ITR12), based on your complete logbook and substantiated costs. Consult a registered tax practitioner for guidance specific to your situation.

Fixed vs. reimbursive travel allowance — which applies to you?

Fixed travel allowance

A set monthly amount paid by your employer, regardless of how many kilometres you actually travel for business. SARS requires your employer to withhold PAYE on 80% of this allowance by default — reduced to 20% if your employer is satisfied that at least 80% of your vehicle's use for the year will be for business purposes.

The actual amount you can deduct is only determined at year-end, using either the SARS deemed cost table (see below) or your actual substantiated costs — applied against the business-kilometre proportion shown in your logbook.

Source: SARS — Rates per Kilometre page; SARS Budget 2026 FAQ

Reimbursive travel allowance

A per-kilometre payment based on your actual, logbook-recorded business travel — not a fixed monthly amount. If your employer reimburses you at or below R4.95 per kilometre (and pays no other compensation besides parking or tolls), the entire reimbursement is tax-free. If your employer pays more than R4.95/km, only the excess above that rate is taxable.

Source: SARS Budget 2026 FAQ; SARS — PAYE-GEN-01-G03-A01 ("simplified method")
Fixed allowance Reimbursive allowance
How it's paid Fixed monthly amount Per business kilometre
PAYE during the year 80% (or 20%) of the allowance withheld Tax-free up to R4.95/km; excess above that rate is taxed
Final deductible amount Determined at year-end (deemed cost table or actual costs) Already effectively settled, provided the rate paid is R4.95/km or less
Logbook required Yes Yes
Source: SARS — Rates per Kilometre page; SARS — PAYE-GEN-01-G03 Guide for Employers in respect of Allowances
Can I have both? Yes — some employees receive a fixed monthly allowance for general use, plus a separate reimbursement for specific trips. Each portion is taxed according to its own rules above.

The SARS deemed cost table — how it works

Why it exists: If you don't want to track every actual cost of running your vehicle (or can't substantiate them), SARS allows you to use a prescribed cost scale instead — a deemed (assumed) cost based on your vehicle's value, rather than your actual expenses.

Source: SARS — PAYE-GEN-01-G03-A01
The formula: Deemed rate per km = (Fixed cost ÷ total km travelled in the year) + Fuel cost per km (only if you paid for fuel yourself) + Maintenance cost per km (only if you paid for maintenance yourself) Total deductible amount = Deemed rate per km × business kilometres travelled
Source: SARS — PAYE-GEN-01-G03-A01

The 2027 cost scale table (effective 1 March 2026):

Value of the vehicle Fixed cost (R/year) Fuel cost (c/km) Maintenance cost (c/km)
Up to R115,000R38,344132.9c49.1c
R115,001 – R230,000R68,487148.4c61.4c
R230,001 – R345,000R98,689161.2c67.8c
R345,001 – R460,000R125,393173.4c74.0c
R460,001 – R575,000R152,097185.5c86.9c
R575,001 – R690,000R180,078212.8c102.0c
R690,001 – R805,000R208,106216.5c114.5c
R805,001 – R920,000R237,679220.1c126.1c
Above R920,000R237,679220.1c126.9c
Source: SARS — PAYE-GEN-01-G03-A01, Rate per Kilometre Schedule External Annexure (2027 Tax Year)
Important conditions:
  • No fuel cost may be included if you did not personally bear the full fuel cost (for example, if your employer provides a fuel card)
  • No maintenance cost may be included if you did not personally bear the full maintenance cost (for example, if the vehicle is covered by a maintenance plan)
  • The fixed cost must be reduced pro-rata if the vehicle was used for business purposes for less than the full 365-day tax year
Source: SARS — Rates per Kilometre page

Worked example

A vehicle valued at R400,000 (falling in the R345,001–R460,000 bracket), with 20,000 total kilometres travelled in the year (14,000 of them for business), where the employee paid for both fuel and maintenance themselves:

  • Fixed cost component: R125,393 ÷ 20,000 = R6.27/km
  • Fuel cost component: 173.4c = R1.734/km
  • Maintenance cost component: 74.0c = R0.74/km
  • Deemed rate per km: R6.27 + R1.734 + R0.74 = R8.744/km
  • Total deductible amount: R8.744 × 14,000 business km = R122,416
Source: SARS — PAYE-GEN-01-G03-A01; illustrative calculation
What is "value" for this table? Generally, the original purchase price of the vehicle (including VAT, excluding finance charges), or — for a vehicle held under an instalment credit agreement or lease — the cash value, determined at the time you first obtained the vehicle or the right to use it.
Source: SARS — PAYE-GEN-01-G03-A01

Frequently Asked Questions

What is the tax-free rate per kilometre for 2026/2027?
R4.95 per kilometre, effective 1 March 2026, applies where your employer reimburses you based on actual business kilometres travelled (not a fixed monthly allowance) and pays no other compensation besides parking or toll fees. A logbook is required. If your employer pays more than R4.95/km, only the amount above that rate is taxable.
How much PAYE is withheld from a fixed travel allowance?
By default, 80% of a fixed travel allowance is included in your remuneration for PAYE purposes. This is reduced to 20% if your employer is satisfied that at least 80% of your vehicle's use for the tax year will be for business purposes.
What is the SARS deemed cost table?
A prescribed cost scale that allows you to calculate a deemed deductible rate per kilometre for business travel based on your vehicle's value, without needing to substantiate every actual expense. It includes a fixed cost, fuel cost, and maintenance cost.
Can I claim fuel costs if my employer provides a fuel card?
No. You can only include a fuel cost component in the deemed cost calculation if you personally bore the full cost of fuel used in the vehicle. The same applies to maintenance costs.
Can I claim travel between home and work?
No. Travel between your home and your normal place of work is always classified as private travel under SARS rules, and can never be claimed as business travel.
How long must I keep my travel logbook?
At least 5 years from the date you submitted the relevant tax return. SARS may require you to produce it to substantiate your claim.

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How PAYE is calculated → PAYE on bonuses →

Tools

Tax deadlines 2026/2027 →
Back to: ← PAYE — Complete Guide

Sources:

  1. SARS — Rates per Kilometre — sars.gov.za/tax-rates/employers/rates-per-kilometre/ (80%/20% PAYE rule; R4.95/km confirmation)
  2. SARS — PAYE-GEN-01-G03-A01 — Rate per Kilometre Schedule External Annexure (2027 Tax Year) — sars.gov.za (full deemed cost table; formula; vehicle value definition)
  3. SARS — PAYE-GEN-01-G03 — Guide for Employers in respect of Allowances — sars.gov.za (fixed vs. reimbursive treatment; worked examples)
  4. SARS — Travel e-Logbook — sars.gov.za/types-of-tax/personal-income-tax/travel-e-log-book/ (logbook requirements; private travel exclusion; 5-year retention)
  5. SARS Budget 2026 FAQ — sars.gov.za (R4.95/km confirmation; 80%/20% rule summary)
  6. Income Tax Act 58 of 1962 — Section 8(1)

Last reviewed: June 2026. Next review: after Budget Speech February 2027 — the deemed cost table and R4.95/km rate are both adjusted annually.