Cents per Km Calculator Australia
Calculate your work-related car expense deduction using the ATO cents per kilometre method. Enter your business kilometres and this tool applies the current FY 2026-27 rate of 91 cents per kilometre, an 89 cent base plus a temporary one-off 2 cent uplift, automatically enforcing the 5,000km-per-car cap. It shows your claimable kilometres, the deduction amount, and flags when the logbook method might give you a larger claim. Free, accurate, and calculated entirely in your browser, no signup required.
Car expense deduction
91c/kmMaximum 5,000 km per car under this method.
ATO rate for FY 2026-27 is 91c/km. Enter 88 for FY 2025-26 or FY 2024-25.
- Claimable kilometres
- 0 km
- Deduction
- $0.00
The 91c/km rate covers all running costs (fuel, rego, insurance, servicing and depreciation), so you can't claim those separately. The 5,000 km cap is per car. Also try the vehicle rego cost calculator, the sole trader tax calculator, or estimate the tax saved with the income tax calculator.
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How the cents per kilometre method works
The cents per kilometre method is the simplest way to claim a deduction for work-related car expenses on your Australian tax return. You multiply the number of business kilometres you travelled by a single rate set by the ATO each year. That rate is designed to cover all of your running costs, fuel, oil, registration, insurance, servicing, repairs and depreciation, so you can't claim any of those costs separately on top of it.
The formula
- Deduction = work-related kilometres × rate per km
- For FY 2026-27 the ATO rate is 91 cents ($0.91) per kilometre, an 89 cent base plus a temporary one-off 2 cent uplift. FY 2025-26 and FY 2024-25 were 88 cents.
- You can claim a maximum of 5,000 work-related kilometres per car using this method.
Worked example. You drove 4,200 kilometres for work this year. Your deduction is 4,200 × $0.91 = $3,822. If instead you drove 6,500 work kilometres, the method caps your claim at 5,000 km, so your deduction is 5,000 × $0.91 = $4,550, the maximum under this method for FY 2026-27.
The 5,000 km cap and when the logbook method beats it
Because the cents per kilometre method is capped at 5,000 km per car (a maximum deduction of $4,550 at the 91c rate), it tends to suit people who use their car for work occasionally. If you regularly travel well beyond 5,000 work kilometres, the logbook method (which claims your actual running costs multiplied by your business-use percentage, with no kilometre cap) will often produce a larger deduction. The trade-off is more record-keeping: you need a valid 12-week logbook and receipts for your car expenses.
Records you need to keep
You don't need a formal logbook for the cents per kilometre method, but you do need to be able to show how you worked out your business kilometres, for example a diary of work trips or a reasonable estimate based on a regular pattern of travel. You also need to be able to show that you owned or leased the car. Keep these records for five years. The rate is reviewed and set by the ATO each income year, so always check the current figure before lodging.
Frequently asked questions
What is the cents per km rate for 2026-27?
The ATO cents per kilometre rate for the 2026-27 income year is 91 cents per kilometre. That is an 89 cent base plus a temporary one-off 2 cent uplift, so do not assume next year by indexing 91c. The 2025-26 and 2024-25 rate was 88 cents. The rate covers all your car running costs, including fuel, registration, insurance, servicing and depreciation, so you can't claim those separately on top of it.
How many kilometres can I claim under the cents per km method?
You can claim a maximum of 5,000 work-related kilometres per car, per year, using the cents per kilometre method. At 91c/km that caps the deduction at $4,550 per car for FY 2026-27. If you drive more than 5,000 work-related kilometres, the logbook method often gives a larger deduction.
How do I calculate my car expense deduction?
Multiply your work-related kilometres (capped at 5,000) by the ATO rate of 91 cents. For example, 4,200 work km at $0.91 = $3,822. If you travelled 6,500 km, you can only claim 5,000 km at $0.91 = $4,550 under this method, so a logbook may be worth considering.
Do I need a logbook for the cents per km method?
No formal logbook is required, but you must be able to show how you worked out your business kilometres, for example a diary of trips, a record of a typical week's travel, or a calculation based on regular journeys. You also need to be able to show you owned or leased the car. Keep these records for five years.
What's the difference between cents per km and the logbook method?
The cents per km method uses a flat 91c/km on up to 5,000 km with minimal record-keeping. The logbook method claims your actual running costs multiplied by your business-use percentage (from a 12-week logbook), with no kilometre cap. High-mileage business drivers usually claim more with the logbook method; occasional users prefer cents per km for its simplicity.
Can I claim cents per km for more than one car?
Yes. The 5,000 km cap applies per car, so if you used two cars for work you can claim up to 5,000 km on each (a separate calculation per vehicle). The 91c/km rate is the same for every car. You can also use a different method for each car.
Sources & methodology
How we calculate this
This calculator applies the ATO cents per kilometre method: deduction = work-related kilometres (capped at 5,000 per car) times the cents-per-km rate. The rate defaults to 91 cents for FY 2026-27, which is an 89 cent base plus a temporary one-off 2 cent uplift, and the 5,000 km cap is enforced automatically. Enter a different rate above to work out an earlier year. Everything is computed in your browser, nothing you enter is stored or sent to a server.
Authoritative sources
Reviewed by Bishal Shrestha, Founder of OneBookPlus, 10+ years building tools with Australian tax-agent and BAS-agent practices. Rates and thresholds last verified: .
Disclaimer: This calculator produces estimates only and is not tax advice. Tax outcomes depend on your individual circumstances. For decisions that affect your tax position, consult a registered tax agent or the ATO directly.
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