SARS Rate Per KM 2027: R4.95, Allowances & Claims
SARS rate per km for 2027 is R4.95. Travel allowance vs reimbursive travel, the deemed-cost table, a worked example, and how to claim with a logbook.
What is the SARS rate per kilometre for 2027?
The SARS prescribed reimbursement rate for the 2027 year of assessment is R4.95 per kilometre (495 cents). It applies to reimbursive travel for years of assessment starting on or after 1 March 2026, and the Minister of Finance approved it on 25 February 2026.
If your employer reimburses you per business kilometre at or below R4.95 and pays nothing else for that vehicle, the reimbursement is tax-free. Where the reimbursement is above the prescribed rate, the excess may be taxable. And if you receive a fixed travel allowance instead of a per-kilometre reimbursement, different rules apply and your claim comes from the SARS deemed-cost method, not the flat rate.
Travel allowance vs reimbursive travel
Most of the confusion around "the SARS rate" comes from mixing up two different things. Here is how they compare.
| Travel allowance | Reimbursive travel | |
|---|---|---|
| How you are paid | Fixed monthly allowance | Paid per business kilometre |
| How the claim works | Deemed-cost method (table below) or actual costs | SARS prescribed rate of R4.95 per km |
| Logbook | Required | Required |
| Where it is settled | Final claim on your ITR12 | Usually handled through your employer |
For how the travel-allowance claim is filed, see SARS travel claims on your ITR12.
What is the SARS deemed cost table for 2026/2027?
If you receive a travel allowance, your claim is calculated using the deemed-cost method. That method builds a rate per kilometre from three parts: a fixed cost (spread across all your kilometres for the year), a fuel cost per kilometre, and a maintenance cost per kilometre. Which row you use depends on what your vehicle is worth.
| Value of the vehicle | Fixed cost (R/year) | Fuel (c/km) | Maintenance (c/km) |
|---|---|---|---|
| Not over R115 000 | 38 344 | 132.9 | 49.1 |
| R115 001 to R230 000 | 68 487 | 148.4 | 61.4 |
| R230 001 to R345 000 | 98 689 | 161.2 | 67.8 |
| R345 001 to R460 000 | 125 393 | 173.4 | 74.0 |
| R460 001 to R575 000 | 152 097 | 185.5 | 86.9 |
| R575 001 to R690 000 | 180 078 | 212.8 | 102.0 |
| R690 001 to R805 000 | 208 106 | 216.5 | 114.5 |
| R805 001 to R920 000 | 237 679 | 220.1 | 126.1 |
| Over R920 000 | 237 679 | 220.1 | 126.9 |
Two conditions attach to the table. You may only claim the fuel cost where you personally bear the cost of the fuel, and you may only claim the maintenance component where you personally bear those maintenance costs. If maintenance is covered under a maintenance plan, that component is generally excluded.
How do you work out a travel allowance claim?
The deemed-cost method comes down to your business-use percentage. You work out a rate per kilometre from the table, then apply it to your business kilometres.
The steps are: find your total kilometres for the year from your opening and closing odometer readings, find your business kilometres from your logbook, build the rate per kilometre (fixed cost divided by total km, plus the fuel and maintenance cents per km), then multiply that rate by your business kilometres. If you used the car for business for less than the full year, the fixed cost is reduced pro rata over 365 days.
SARS requires a logbook to support the claim. The SARS travel logbook requirements post covers exactly what to record.
Worked example: claiming on a R300 000 car
Say you bought a car for R300 000, drove 24 000 km during the tax year, and your logbook shows 9 000 km were for business. You paid for your own fuel and maintenance.
That car sits in the R230 001 to R345 000 band, so from the table the fixed cost is R98 689, fuel is 161.2c per km, and maintenance is 67.8c per km.
First work out your rate per kilometre:
- Fixed cost per km: R98 689 divided by 24 000 km = R4.11
- Fuel plus maintenance per km: 161.2c + 67.8c = 229.0c, which is R2.29
- Rate per km: R4.11 + R2.29 = R6.40
Then apply that rate to your business kilometres: R6.40 multiplied by 9 000 km is about R57 600. That is the travel deduction you could claim for the year.
Notice that the fixed cost is spread across all 24 000 km, not just the business ones. The more of your total driving is for business, the larger the share of that fixed cost you get to claim, which is another reason an accurate logbook matters.
What if you own a business or work for yourself?
The prescribed rate and the deemed-cost table are written for employees. If you earn business income, the picture is different.
For sole proprietors, freelancers, consultants, contractors and commission earners, vehicle costs are generally claimed against your business income using the business-use percentage from your logbook, rather than against a travel allowance on an IRP5.
For companies, directors and employees may receive a travel allowance or reimbursive travel payments, subject to the normal SARS rules covered above.
For owner-managed businesses, the choice between a company-owned vehicle, a personal vehicle with reimbursement, or a travel allowance can change the tax outcome meaningfully, so it is worth getting advice on which structure fits. What does not change is the logbook: it drives the business-versus-private split in every one of these cases. SARS travel claims on your ITR12 covers the self-employed route in more detail.
How is a travel allowance taxed during the year?
If you receive a travel allowance, 80% of it is included in your monthly remuneration for PAYE. That drops to 20% if your employer is satisfied that at least 80% of your driving for the year will be for business. The final claim is settled when you file your ITR12 and your logbook is assessed.
Has the rate gone up from last year?
Yes. The prescribed rate rose from R4.76 in the 2026 tax year to R4.95 for 2027. The deemed cost bands were also updated, so if you are reusing a spreadsheet from a prior year, replace the fixed and per-kilometre figures with the table above.
Frequently asked questions
What is the SARS rate per km for the 2027 tax year?
The prescribed rate is R4.95 per kilometre (495 cents), effective for years of assessment starting on or after 1 March 2026. That is the tax-free rate for per-kilometre reimbursements. If you claim against a travel allowance, you use the deemed-cost method rather than the flat rate.
What is the difference between a travel allowance and reimbursive travel?
A travel allowance is a fixed amount paid every month, and you claim the business portion on your ITR12 using the deemed-cost method and a logbook. Reimbursive travel is paid per business kilometre, and up to R4.95 per km with no other vehicle allowance it is tax-free. Both require a logbook.
Can I claim the R4.95 rate if I get a monthly travel allowance?
No. The R4.95 rate is for per-kilometre reimbursements where you receive no other travel allowance for that vehicle. With a fixed travel allowance you calculate your claim using the deemed-cost table and your business-use percentage.
Can I claim fuel if my car is on a maintenance plan?
You can still claim the fuel component where you pay for fuel yourself. The maintenance component is generally excluded, because a maintenance plan means you did not bear that cost.
What was the SARS rate per km before 1 March 2026?
For the 2026 tax year the prescribed rate was R4.76 per kilometre. It increased to R4.95 for the 2027 tax year. --- Whichever method applies to you, SARS requires evidence of your business kilometres, and tracking them by hand is where most travel claims fall apart. Expenstry logs your trips and odometer readings as you go and builds a SARS-ready logbook, so the deduction is there when you file. See Expenstry pricing, from R59 a month. This article is general information, not tax advice. Confirm the current figures and rules for your situation at sars.gov.za.