R4.95 per km for 2026/27
For the 2026/27 tax year (1 March 2026 to 28 February 2027), SARS's prescribed rate is R4.95 per kilometre (495 cents). SARS's Guide for Employers in respect of Allowances lists it as "R4.95 per kilometre (from 1 March 2026)" (PAYE-GEN-01-G03). It's set in Government Gazette 54228, Notice 7182, which the Minister of Finance approved on 25 February 2026 (SARS: Rates per kilometre).
In one line: if your employer pays you per business kilometre at no more than R4.95/km and pays you no other allowance or reimbursement for the vehicle (parking and tolls aside), that reimbursement isn't taxed.
How the simplified rate works
The SARS eLogbook 2026-27 explains: "Where an allowance or advance is based on the actual distance travelled by the employee for business purposes, at the option of the recipient no tax is payable on an allowance paid by an employer to an employee, up to 495 cents per kilometre, regardless of the value of the vehicle." But "this alternative is not available if other compensation in the form of an allowance or reimbursement (other than for parking or toll fees) is received from the employer in respect of the vehicle" (SARS eLogbook 2026-27).
Example: you drive 1 500 business km in a month and your employer reimburses you at R4.95/km. That's 1 500 × R4.95 = R7 425, not taxed if no other vehicle allowance is paid.
Paid more or less than R4.95?
How your employer reports it on your IRP5 (SARS FAQ on reimbursed travel and PAYE):
- Code 3703: reimbursed at or below the prescribed rate, with no other compensation. Non-taxable; nothing to claim.
- Code 3702: the part up to the prescribed rate (business km × R4.95) when you're paid above the rate or get other travel compensation.
- Code 3722: the part above the prescribed rate, which is taxed through PAYE.
Example: 1 000 business km reimbursed at R5.95/km. Code 3702 = 1 000 × R4.95 = R4 950; code 3722 = 1 000 × R1.00 = R1 000.
The 2026/27 cost table (for travel allowance deductions)
If you get a travel allowance (code 3701) rather than a per-km reimbursement, your deduction isn't R4.95/km. It's worked out from this table, based on the value of your vehicle, or from your actual costs. These rates apply from 1 March 2026 to 28 February 2027 (SARS eLogbook 2026-27, GG 54228):
| Value of the vehicle (incl. VAT) | Fixed cost (R per year) | Fuel cost (c/km) | Maintenance cost (c/km) |
|---|---|---|---|
| R0 – R115 000 | 38 344 | 132.9 | 49.1 |
| R115 001 – R230 000 | 68 487 | 148.4 | 61.4 |
| R230 001 – R345 000 | 98 689 | 161.2 | 67.8 |
| R345 001 – R460 000 | 125 393 | 173.4 | 74.0 |
| R460 001 – R575 000 | 152 097 | 185.5 | 86.9 |
| R575 001 – R690 000 | 180 078 | 212.8 | 102.0 |
| R690 001 – R805 000 | 208 106 | 216.5 | 114.5 |
| R805 001 – R920 000 | 237 679 | 220.1 | 126.9 |
| More than R920 000 | 237 679 | 220.1 | 126.9 |
Rules that come with the table (SARS: Rates per kilometre):
- No fuel cost may be claimed if you didn't carry the full cost of fuel, and no maintenance cost if you didn't carry the full cost of maintenance (for example, with a maintenance plan).
- The fixed cost is reduced pro rata if the vehicle was used for business for less than a full year.
- The actual distance travelled in the year, and the business distance shown in a logbook, are used to work out the claim.
What counts as the value of your vehicle
According to the SARS ITR12 guide (section 10.5.4): if you bought it, the original cost including VAT but excluding finance charges or interest; if you lease it (financial lease), the cash value for VAT purposes plus VAT; in any other case, the market value when you first got the vehicle or the right to use it, plus VAT.
Worked example with the cost table
A car worth R400 000 (the R345 001 to R460 000 band), 30 000 km in total for the year, of which 12 000 km business:
| Fixed cost per km: R125 393 ÷ 30 000 km | 418.0 c/km |
| Fuel | 173.4 c/km |
| Maintenance | 74.0 c/km |
| Rate per business km | 665.4 c/km |
| Deduction: 12 000 km × 665.4 c | R79 845.20 |
The claim is limited to the travel allowance received. Illustration only; SARS calculates the final amount on assessment.
How much PAYE comes off a travel allowance
Your employer must include 80% of a travel allowance in your remuneration for PAYE, or 20% if the employer is satisfied that at least 80% of the vehicle's use in the tax year will be for business (SARS: Rates per kilometre). The final tax is settled on assessment, using your logbook.
What about 2027/28?
The rate for the 2027/28 tax year (from 1 March 2027) is normally announced with the February 2027 Budget. We'll update this page when SARS publishes it. SA Logbook keeps rates per tax year, so each logbook uses the right one.
Sources
Everything on this page comes from these official SARS sources:
- SARS: Guide for Employers in respect of Allowances (PAYE-GEN-01-G03, PDF)
- Government Gazette 54228, Notice 7182: rate per kilometre for the 2026/27 tax year (PDF)
- SARS: Rates per kilometre
- SARS eLogbook 2026-27 (PDF)
- SARS FAQ: How are travel expenses for which I was reimbursed treated for PAYE purposes?
- SARS: Comprehensive Guide to the ITR12 (IT-AE-36-G05, revision 40, effective 29 June 2026, PDF)