Travel Allowance Tax Calculator
See how much of a car or travel allowance your logbook makes tax-free, and what that could mean on assessment.
Your allowance, car and kilometres
Worked example
These are the calculator's starting values, so the results above match this example until you change an input.
Johan gets a travel allowance of R 8 000 a month and drives a car that cost R 350 000, paying all the fuel and maintenance himself. He drives 24 000 km in the year, and his logbook shows 12 000 km of business travel. His salary is R 480 000 a year.
His car falls in the R 345 001 – R 460 000 band of the 2026/27 table: a fixed cost of R 125 393 a year spread over 24 000 km, plus 173,4 c/km for fuel and 74,0 c/km for maintenance: R 7,70 a kilometre.
For 12 000 business kilometres that gives a deduction of R 92 384,50, so only R 3 615,50 of his R 96 000 allowance is taxable on assessment.
During the year his employer withheld PAYE as if 80% of the allowance were taxable, so on assessment he can expect a refund of about R 24 017,20.
How a travel allowance is taxed
A travel (car) allowance is part of your taxable income, but you can deduct the cost of business travel on assessment if you keep a logbook. During the year your employer withholds PAYE on 80% of the allowance, or on 20% if it is satisfied that at least 80% of your travel is for business. When SARS assesses your return, it replaces that rough split with your actual business kilometres.
The 2026/27 deemed cost table
Most people use SARS’s deemed cost table rather than actual receipts. The cost per kilometre is the fixed cost for your car’s value divided by your total kilometres for the year, plus the fuel and maintenance costs per kilometre (only if you pay all of those yourself). The deduction is that cost per kilometre times your business kilometres, and it cannot be more than the allowance.
| Value of the car (incl. VAT) | Fixed cost a year | Fuel | Maintenance |
|---|---|---|---|
| Up to R 115 000 | R 38 344 | 132,9 c/km | 49,1 c/km |
| R 115 001 – R 230 000 | R 68 487 | 148,4 c/km | 61,4 c/km |
| R 230 001 – R 345 000 | R 98 689 | 161,2 c/km | 67,8 c/km |
| R 345 001 – R 460 000 | R 125 393 | 173,4 c/km | 74,0 c/km |
| R 460 001 – R 575 000 | R 152 097 | 185,5 c/km | 86,9 c/km |
| R 575 001 – R 690 000 | R 180 078 | 212,8 c/km | 102,0 c/km |
| R 690 001 – R 805 000 | R 208 106 | 216,5 c/km | 114,5 c/km |
| Above R 805 000 | R 237 679 | 220,1 c/km | 126,9 c/km |
If your employer pays you per kilometre (a reimbursive allowance) instead, up to R 4,95 a kilometre for business travel is not taxed, whatever the car’s value, as long as you receive no other vehicle allowance apart from parking or tolls.
How this calculator works
It looks up the 2026/27 row for your car’s value, works out the cost per kilometre and the deduction for your business kilometres, and compares the tax on your income with 80% (or 20%) of the allowance included against the tax with only the part your logbook does not cover. It uses the 2026/27 tax tables and age rebates, and assumes a full year of use. It ignores medical credits, other deductions and the option of claiming actual costs.
Deemed cost table, the R 4,95 per kilometre rate and the 80%/20% PAYE rules for the 2027 year of assessment (1 March 2026 to 28 February 2027) from the Budget 2026 Tax Guide. Tax brackets and rebates from SARS rates of tax for individuals. Checked 18 October 2026. This is a general estimate, not tax advice. SARS can ask for your logbook, so keep it for at least five years.
Related calculators
Frequently asked questions
How much of my travel allowance is taxable?
During the year PAYE is withheld on 80% of it (20% if at least 80% of your travel is for business). On assessment only the part your logbook does not cover is taxed.
Do I need a logbook?
Yes. Without a logbook that shows your business trips, you cannot claim any business travel deduction, and the whole allowance is taxed.
Is driving from home to the office business travel?
No. SARS treats travel between your home and your usual place of work as private travel.
Does a company car work the same way?
No. A company car is a fringe benefit taxed on a percentage of its value each month, not a travel allowance.