Travel allowance tax calculator
How a travel allowance is taxed: the PAYE you pay through the year, and the refund a logbook can bring, using SARS's rate per kilometre for the 2026/27 tax year.
Expected refund from SARS
R 15 281for the year
PAYE is worked out on 80% of your allowance (R 57 600 a year). With your logbook, R 5 462 of the R 72 000 allowance ends up taxed.
Your rate per kilometre
| Fixed cost (R 125 393 ÷ 30 000 km) | R 4,18 |
| Fuel | R 1,73 |
| Maintenance | R 0,74 |
| Rate per kilometre | R 6,65 |
| Business travel: 10 000 km × R 6,65 | R 66 538 |
| Deduction on assessment | R 66 538 |
Tax for the year
| PAYE deducted through the year | R 72 873 |
| Tax due on assessment | R 57 592 |
| Refund | R 15 281 |
PAYE is R 6 073 a month. 33% of your driving is business travel.
How a travel allowance is taxed
Your employer adds 80% of a fixed travel allowance to your pay for PAYE (20% if it's satisfied that at least 80% of your travel is business). When you file, SARS taxes the whole allowance but lets you deduct your business travel, so most people with real business travel get a refund.
The deduction is your business kilometres times a rate per kilometre from SARS's cost scale: the fixed cost for your vehicle's value divided by the total kilometres you drove, plus fuel and maintenance if you pay for them. You need a logbook of every business trip. Driving between home and your usual workplace is private travel.
SARS cost scale 2026/27
| Vehicle value | Fixed cost a year | Fuel (cents a km) | Maintenance (cents a km) |
|---|---|---|---|
| Up to R 115 000 | R 38 344 | 132,9 | 49,1 |
| R 115 001 – R 230 000 | R 68 487 | 148,4 | 61,4 |
| R 230 001 – R 345 000 | R 98 689 | 161,2 | 67,8 |
| R 345 001 – R 460 000 | R 125 393 | 173,4 | 74,0 |
| R 460 001 – R 575 000 | R 152 097 | 185,5 | 86,9 |
| R 575 001 – R 690 000 | R 180 078 | 212,8 | 102,0 |
| R 690 001 – R 805 000 | R 208 106 | 216,5 | 114,5 |
| R 805 001 – R 920 000 | R 237 679 | 220,1 | 126,1 |
| Over R 920 000 | R 237 679 | 220,1 | 126,9 |
You can claim your actual costs instead, with records. An allowance paid per kilometre travelled (a reimbursement) is taxed differently.
Read the guide: How your travel allowance is taxed