Tax & government Australia
Car Expense Deduction Calculator (Cents per Km)
The cents per kilometre method lets you claim a set rate for each business kilometre driven in your own car, up to 5,000 km, without keeping receipts for running costs. This calculator applies the rate and the cap, and estimates the tax saved at your income.
Free, no signup Runs in your browser
2026-27 rate per published guides; confirm with the ATO.
Estimated deduction
—Kilometres claimed
—
Cap per car
—
Rate per km
—
Deduction
—
Estimated tax saved
—
Kilometres over the cap
—
How the claim is built
Working with a different rate? Edit the rates this calculator uses
These are the figures we verified on 2026-10-26. Change them to work with a historic period, or with a new rate that has been announced but which we have not published yet.
ATO; set by income year. 88c for 2025-26
ATO
Not tax advice. Only work-related travel qualifies, and normal commuting between home and work does not. The rate is set by the ATO for each income year. For more than 5,000 km, or a different method, use the logbook method; speak to a registered tax agent if unsure.
How do I calculate my car deduction using cents per km?
Multiply your business kilometres, up to 5,000, by the ATO rate. At 88 cents, 3,500 km is $3,080. The rate covers fuel, servicing, registration, insurance and depreciation, so you cannot claim those separately. You must be able to show how you worked out the kilometres, such as a diary, and it saves about $986 in tax on $95,000.
The $1,000 standard deduction from 2026–27
From the 2026–27 income year the ATO applies an automatic standard deduction for work-related expenses, up to the lower of $1,000 and your assessable labour income, with no receipts needed. If you claim work-related expenses that it covers, the standard deduction is reduced by what you claim, and if your claims total more than $1,000 you need written evidence for every work-related expense you claim.
So for 2026–27 a work from home claim only improves on the automatic deduction when your total work-related claims exceed $1,000. For the 2025–26 return the fixed rate method works as before. We did not find an ATO fixed rate for 2026–27 on the pages we checked: 70 cents an hour applies to 2024–25 and 2025–26.
What counts as business travel
Travel between two work locations, to a client, or to pick up supplies for work is business travel. Driving between home and your regular workplace is private travel, however far, and cannot be claimed. Having to carry bulky tools is not enough to turn a commute into business travel.
Keep a note of each trip's purpose, date and distance, because the ATO can ask how you worked out the figure.
Cents per kilometre or logbook
The logbook method uses your actual car costs multiplied by the business-use percentage from a 12-week log. It suits higher business use. The cents per kilometre method suits low to moderate use because it needs no receipts.
To see the whole refund effect, use the tax refund calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
deduction = business kilometres (up to 5,000 per car) × cents per kilometretax saved = tax on income − tax on (income − deduction)the rate already includes fuel, servicing, registration, insurance and depreciation, so none of those can be claimed on top
The cap is on kilometres, not dollars. Drive 8,000 business kilometres and you can claim only the first 5,000 under this method, and the rest need the logbook method, which uses your actual costs and a 12-week logbook. For many people with high business use the logbook method produces a larger deduction.
The ATO expects a reasonable basis for the kilometres, such as a diary, work calendar or odometer readings, even though you do not keep receipts for the running costs.
A worked example
3,500 business kilometres in one car at 88 cents, on an income of $95,000.
- Kilometres claimed3,500 (under the 5,000 cap)
- Rate88 cents
- Deduction$3,080
- Tax and Medicare saved$986
$3,080 deduction, saving about $986 in tax.
At 6,000 km the claim would stop at 5,000 km, which is $4,400.
The rate changes each year
The ATO sets the rate for each income year: 88 cents for 2025-26, and published guides show 91 cents for 2026-27. If you use a different rate, change it in the rate panel.
Claiming more than one car
The 5,000 km cap applies per car, so if you use two cars for work you can claim up to 5,000 km for each, provided you can show each trip. Use the field above to apply the cap to more than one vehicle.
What this calculator does not do
- Cents per kilometre method only; no logbook calculations
- Only your own car, not a car you do not own or lease
- 5,000 km per car cap applies
- Commuting is not business travel
- For 2026–27 the automatic $1,000 standard deduction may cover this claim
Common questions
What is the cents per kilometre rate?
88 cents a kilometre for 2025–26 and 91 cents for 2026–27, which is a base rate of 89 cents plus a one-off 2 cent uplift set by the ATO's determination for 2026–27. The method is limited to 5,000 business kilometres per car.
What is the maximum kilometres I can claim?
5,000 business kilometres per car per year under this method.
Can I claim fuel as well?
No. The rate already covers fuel, servicing, registration, insurance and depreciation.
Is travelling to work a business trip?
No. Travel between home and your regular workplace is private, even if it is long.
Do I need a logbook?
Not for this method, but you need to be able to show how you worked out the kilometres.
Where these numbers come from
- ATO — cents per kilometre method The 5,000 km limit and the rate for the year
- ATO — tax rates, Australian residents 2026-27 resident brackets, 15% lowest rate and the $18,200 tax-free threshold
- Australian Taxation Office — cents per kilometre rate for 2026–27 (LI 2026/19) The 2026–27 rate of 91 cents, made up of an 89 cent base and a 2 cent one-off uplift
- Australian Taxation Office — claiming deductions The $1,000 standard deduction from 2026–27
Rates last verified 2026-10-26 Every figure Australian Taxation Office sets is re-checked against the source at least once a year, and again whenever a change is announced. Out of date? Tell us and we will fix it.
Related AU calculators
Work from home deduction
Your WFH deduction under the fixed rate method, and the tax it saves.
Open calculator Tax & governmentTax refund
Estimate whether you will get a refund or owe tax.
Open calculator AutomotiveTrip fuel cost
What a trip costs at the pump price you actually paid, not a national average.
Open calculator Tax & governmentIncome tax & take-home
Tax, Medicare and HELP on your income, then what you actually take home.
Open calculator