Travel Allowance Tax Calculator
Calculate your SARS travel allowance deduction for 2025/2026. Compare deemed rate (R4.64/km) vs actual cost method with logbook requirements.
How Travel Allowance Tax Works
Your employer includes 80% of your travel allowance in taxable income for PAYE deduction. When you file your ITR12, you claim back a deduction for business kilometres.
The SARS deemed rate for 2025/2026 is R4.64 per km. Multiply this by your business kilometres to calculate your deduction — capped at your allowance received. You must have a valid logbook.
Travel Allowance Tax Calculation
Logbook Requirements
Your logbook must record for each business trip:
- Date of travel
- Starting odometer reading
- Ending odometer reading
- Business destination
- Business purpose
The logbook must also show total kilometres travelled for the year (odometer readings). SARS accepts digital logbooks (apps like TaxTim, SimplePay) as long as they contain all required information.
Worked Example
Annual travel allowance: R72,000 | Business KM: 18,000 | Total KM: 28,000
PAYE (monthly): 80% × R72,000 ÷ 12 = R4,800/month included in income
Deemed deduction: 18,000 km × R4.64 = R83,520 → capped at R72,000
Taxable on assessment: max(0, 80% × R72,000 − R72,000) = max(0, −R14,400) = R0
Result: Full travel allowance is deductible — potential refund of tax paid on 80% during the year
Method Comparison
| Method | Deduction | Net Taxable | Tax Saving |
|---|---|---|---|
| Deemed Rate (R4.64/km) | R 84 000 | R 0 | R 20 832 |
| SARS Fixed Cost Table | R 84 000 | R 0 | R 20 832 |
| Actual Cost | R 84 000 | R 0 | R 20 832 |
SARS Fixed Cost Table (2025/2026)
| Vehicle Value | Annual Fixed Cost | Fuel (c/km) | Maint. (c/km) |
|---|---|---|---|
| Up to R 100 000 | R 28 980 | R 1.067 | R 0.361 |
| Up to R 200 000 | R 51 912 | R 1.249 | R 0.436 |
| Up to R 300 000 | R 73 476 | R 1.413 | R 0.513 |
| Up to R 400 000 | R 94 116 | R 1.578 | R 0.601 |
| Up to R 500 000 | R 114 696 | R 1.751 | R 0.693 |
| Up to R 600 000 | R 134 868 | R 1.934 | R 0.792 |
| Up to R 700 000 | R 156 468 | R 2.130 | R 0.903 |
| Up to R 800 000 | R 178 164 | R 2.336 | R 1.023 |