If you receive a travel allowance (source code 3701) or a taxable reimbursive allowance (source code 3702) on your IRP5/IT3(a), you can claim a tax deduction for business kilometres travelled. This free SARS travel allowance calculator works out your travel deduction for the 2026 tax year using either the deemed-cost (cost-scale) method or the actual-cost method, and tells you which gives the bigger refund. A logbook is compulsory for any claim.
The deduction is governed by section 8(1)(b) of the Income Tax Act, which sets out two ways to value your business travel against your allowance. Deemed-cost method: SARS publishes an annual cost scale (the PAYE-GEN-01-G03-A01 "Rate per Kilometre Schedule") that gives a fixed cost (R/year), a fuel cost (c/km) and a maintenance cost (c/km) based on the value of your vehicle (cost including VAT, excluding finance charges). The fixed cost is apportioned over the year on a 365-day basis, divided by your total kilometres to get a fixed cost per km, then added to the fuel and maintenance rates and multiplied by your business kilometres. Actual-cost method: you add up real running costs you paid (fuel, maintenance, insurance, licence, finance interest) plus wear-and-tear on the vehicle written off over 7 years, then claim the business-use portion (business km ÷ total km). For the actual-cost and wear-and-tear calculation the vehicle value is capped at R800,000. The calculator runs both methods and recommends the larger deduction. Note the deduction can never exceed the allowance actually included in your income.
How the travel deduction is worked out (section 8(1)(b)), 2026 tax year:
You claim the BUSINESS portion of your motor-vehicle costs using whichever method gives the larger deduction:
Key 2026 figures:
The exact deemed-cost band figures (fixed cost, fuel and maintenance rates) are set by SARS and change each tax year, so the calculator always applies the official SARS cost scale for the year of assessment you select. Check the current schedule on the SARS website.
Example (2026 tax year), deemed-cost method. Sipho has a travel allowance and a car used for the full year. He drove 28,000 km in total and his logbook shows 11,200 km (40%) were for business. He lets SARS apply the deemed-cost scale: the calculator looks up the fixed cost, fuel and maintenance rates for his vehicle's value band, divides the fixed cost across his 28,000 total kilometres, adds the per-kilometre fuel and maintenance rates, and multiplies the combined rate by his 11,200 business kilometres. It then works out the actual-cost result as well (his receipted running costs plus vehicle cost ÷ 7 wear-and-tear) and recommends whichever deduction is larger. Keeping a complete logbook is what makes either claim valid. As a rough benchmark, those 11,200 business kilometres at the R4.76/km simplified rate come to R53,312 (11,200 × R4.76), but the deemed-cost or actual-cost deduction is calculated separately and is often larger.
It is a tax deduction you claim against a travel allowance (code 3701) or taxable reimbursive allowance (code 3702) for the business portion of your motor-vehicle running costs. Under section 8(1)(b) you claim using either SARS's deemed cost scale or your actual costs, supported by a logbook. It reduces your taxable income.
Yes. A logbook is compulsory for any travel allowance claim, whether you use the deemed-cost or actual-cost method. It must record opening and closing odometer readings for the tax year plus the date, destination, reason and business kilometres of each trip. Without a valid logbook, SARS will disallow the deduction entirely.
Whichever gives the larger deduction. The deemed-cost method uses SARS's published cost scale and needs no receipts beyond your logbook. The actual-cost method uses real fuel, maintenance, insurance, licence and finance costs plus wear-and-tear (cost ÷ 7 years, capped at R800,000). This calculator runs both and recommends the bigger result.
For the 2026 tax year (1 March 2025 – 28 February 2026), SARS's simplified reimbursive rate is R4.76 per kilometre. An employer may reimburse business travel at up to R4.76/km without triggering PAYE, provided no other travel compensation is paid. The deemed-cost scale rates differ and depend on your vehicle's value.
On your IRP5, 80% of a travel allowance (code 3701) is subject to PAYE during the year, or 20% if you travel mainly for business. The full allowance is declared at assessment, and you then claim your section 8(1)(b) travel deduction against it. Your deduction can never exceed the allowance included in income.
Yes, but not via the travel-allowance deemed-cost scale. Commission earners (code 3606) and independent contractors (code 3616) claim vehicle costs as 'Other Deductions', while sole proprietors and freelancers claim them as a 'Local travel' business expense. They use actual costs with wear-and-tear written off over 5 years, apportioned for business use, and still need a logbook.
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