Do I need a logbook to claim business travel?

Yes. The actual distance travelled during the tax year and the distance travelled for business purposes must be substantiated by a logbook. The logbook is what separates the business share from private use.

Is the SARS prescribed rate the same as my real cost per kilometre?

No. The prescribed rate is a simplified figure SARS publishes annually that may be used where actual costs are not claimed. Your real cost per business kilometre is your own vehicle costs divided by your own business kilometres, and where your actual costs are higher, claiming actual costs with proof may serve you better.

Taxes · South Africa · 2027 tax year

SARS rate per km: the 2027 travel allowance rules, and your real cost per business kilometre

Q: What percentage of my travel allowance is taxed?

80% of the travelling allowance must be included in your remuneration for PAYE purposes. The percentage is reduced to 20% if your employer is satisfied that at least 80% of the use of the vehicle for the tax year will be for business purposes.

Q: Can I claim fuel if my employer pays for it?

No. SARS rules state that no fuel cost may be claimed if you have not borne the full cost of fuel used in the vehicle, and no maintenance cost may be claimed if you have not borne the full cost of maintaining it, for example where the vehicle is covered by a maintenance plan.

Every year SARS publishes a prescribed rate per kilometre for claiming business travel against a travel allowance. But the rate is only half the story: what you may actually claim is driven by your logbook, your own costs, and a few rules that catch drivers out. This page explains the rules in plain language and calculates your real cost per business kilometre from your own numbers.

The rules that decide what you can claim (2027 tax year)

These rules come from SARS's official guidance on rates per kilometre, under Section 8(1) of the Income Tax Act. They apply for the 2027 year of assessment (1 March 2026 - 28 February 2027):

80% of your travel allowance is taxed upfront. It must be included in your remuneration for PAYE purposes - reduced to 20% only if your employer is satisfied that at least 80% of the vehicle's use for the year will be for business.
No fuel claim if you did not pay for the fuel. No fuel cost may be claimed where you have not borne the full cost of the fuel used in the vehicle.
No maintenance claim on a maintenance plan. No maintenance cost may be claimed where you have not borne the full cost of maintaining the vehicle, for example when it is covered by a plan.
The fixed cost is pro-rated. If the vehicle is used for business for less than a full year, the fixed cost is reduced proportionally.
A logbook is the proof. The actual distance travelled in the year and the distance travelled for business must be substantiated by a logbook.
There is a tax-free route for per-km allowances. Where an allowance is based on the actual business distance travelled, no tax is payable on it up to the published rate - but not if you receive any other vehicle compensation from your employer (besides parking or tolls).

Free calculator: your real cost per business kilometre

SARS's own guidance says actual costs, substantiated by a logbook, determine what can be claimed. This calculator uses your vehicle's real annual costs and your logbook's business kilometres - not a generic table:

Business kilometres (logbook)
Total kilometres (business + private)
Fuel for the year (R)
Maintenance & tyres (R)
Insurance (R)
Vehicle finance / instalments (R)
Other vehicle costs (R)
Your annual taxable income (R)

Estimates only, using the 2027 individual tax tables published on 25 February 2026 (under-65 rebate). Not tax advice - verify with SARS or a registered tax practitioner.

The prescribed rate vs your actual costs

SARS publishes a simplified rate per kilometre each year - the 2027 schedule was announced on 25 February 2026 - which may be used to determine a deduction where actual costs are not claimed. It is a convenience, not a verdict on what your driving really costs:

The prescribed rate is one figure for everyone. It is quick, but it can understate what an e-hailing vehicle actually costs, because high-mileage driving wears tyres, brakes and services faster than the table assumes.
Your actual costs are your fuel, maintenance, insurance, finance and running costs divided by your own business kilometres. Where they are higher than the prescribed rate, claiming actual costs with proof - receipts and a logbook - is the honest, defensible route.
The current prescribed figure changes every year, and we deliberately do not display a copy of it here that could go stale. Get the live number straight from SARS's rates per kilometre page.

2027 individual tax brackets used in this calculator

Taxable income (R)	Rates of tax (R)
1 - 245 100	18% of taxable income
245 101 - 383 100	44 118 + 26% above 245 100
383 101 - 530 200	79 998 + 31% above 383 100
530 201 - 695 800	125 599 + 36% above 530 200
695 801 - 887 000	185 215 + 39% above 695 800
887 001 - 1 878 600	259 783 + 41% above 887 000
1 878 601 and above	666 339 + 45% above 1 878 600

Primary rebate: R17 820 · tax threshold (under 65): R99 000. Published by SARS on 25 February 2026 for the 2027 year of assessment.

Questions drivers ask

What percentage of my travel allowance is taxed?

80% must be included in your remuneration for PAYE purposes. It drops to 20% if your employer is satisfied that at least 80% of the vehicle's use for the tax year will be for business.

Can I claim fuel if my employer pays for it?

No. Where you have not borne the full cost of the fuel, no fuel cost may be claimed. The same applies to maintenance where the vehicle is on a maintenance plan.

Do I need a logbook?

Yes. The actual distance travelled and the business distance must be substantiated by a logbook - that is what proves the business share.

Is the prescribed rate the same as my real cost per km?

No. The prescribed rate is a simplified published figure. Your real cost per business kilometre comes from your own costs divided by your own business kilometres - use the calculator above, and keep the receipts.

Tax time tip: the logbook is the whole game. Build it as you drive - odometer readings, business classification, receipts - instead of reconstructing a year of driving from memory. The Uber driver tax guide explains what to keep, and BhutiFuel builds the logbook for you.

Your logbook, built automatically

BhutiFuel logs every fill and trip, chains your odometer readings, prices fuel at the official schedule, and turns it all into the logbook and expense records a travel claim needs. Logging is free forever, works offline, and your records are yours.

Start logging free with BhutiFuel