Tax Guide

SARS Travel Allowance Explained: Allowance vs Reimbursive

Travel allowance or reimbursive travel? They are taxed and claimed differently. A plain-English guide for South Africans, with the current SARS prescribed rate and how to claim each.

16 July 2026 · 5 min read · By Expenstry

Two things people lump together

"Travel allowance" gets used loosely, but SARS treats two arrangements differently, and confusing them is where claims go wrong.

A travel allowance is a fixed amount, often monthly, given to cover business travel. Part of it is taxed up front, and you claim your actual business portion when you file, using your logbook and either the deemed-cost tables or actual costs.

Reimbursive travel is paid per business kilometre actually travelled. Where you receive no other travel allowance for that vehicle, reimbursement up to the SARS prescribed rate is tax-free, and anything above the rate is taxable.

The prescribed rate, and why the year matters

SARS publishes a prescribed rate per kilometre and updates it annually. It was R4.76 per km for the 2026 tax year and R4.95 per km for the 2027 tax year (from 1 March 2026). Because the figure changes each year, always confirm the current rate before you rely on it. The full detail sits in the SARS rate per kilometre guide.

How to claim, by arrangement

You receiveHow you claimWhat you need
A fixed travel allowanceBusiness portion on your ITR12, via deemed-cost tables or actual costsA logbook, and for actual costs your expense records
Reimbursement per kmTax-free up to the prescribed rate with no other allowanceA logbook of business kilometres
Nothing, you are self-employedBusiness travel as a deduction, prescribed rate or actual costsA logbook and vehicle cost records

The mechanics for employees and owners are walked through in ITR12 travel and vehicle claims.

What qualifies, and the usual mistakes

Business travel includes client meetings, site visits, training, conferences and business errands. It does not include your commute between home and your regular workplace. The common errors are claiming commuting, keeping no logbook, forgetting short trips, and mixing private and business legs in one journey. Each one weakens an otherwise valid claim. See separating business and private mileage.

Get the rate and the record right automatically

Expenstry applies the current SARS prescribed rate, logs your business kilometres as you drive, and builds the logbook your claim depends on, whichever arrangement you are on. See Expenstry pricing, from R59 a month, or start a 7-day free trial.

General guidance, not personal tax advice. The prescribed rate changes annually, so confirm the current figure and your obligations at sars.gov.za or with your accountant.

Frequently asked questions

What is the difference between a travel allowance and reimbursive travel?

A travel allowance is a fixed amount paid regularly, with the business portion claimed on assessment using a logbook. Reimbursive travel is paid per business kilometre, and up to the prescribed rate with no other allowance it is tax-free.

What is the SARS rate per kilometre?

It was R4.76 for the 2026 tax year and R4.95 for the 2027 tax year. The rate changes annually, so confirm the current figure with SARS.

Can I claim the per-kilometre rate if I get a monthly travel allowance?

No. The tax-free per-kilometre reimbursement applies where you receive no other travel allowance for that vehicle. With a fixed allowance you claim using the deemed-cost method and your business-use percentage.

Do both methods need a logbook?

Yes. Whether you receive an allowance or per-kilometre reimbursement, SARS expects a logbook of your business kilometres.

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