Cents per kilometre calculator (ATO rates)
Claim car expenses with the ATO's cents per kilometre method: business (or work-related) kilometres × the rate for the income year, up to 5,000 km per car. The rate is 91 cents for 2026-27 and 88 cents for 2025-26.
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How it works
- Claim = business km × rate. The ATO's example: 2,514 km × 0.88 = $2,212 for 2025-26.
- The rate covers everything: fuel, servicing, repairs, registration, insurance and decline in value. You can't add any other car expenses on top.
- Maximum 5,000 km per car per year. Over that, you'd need the logbook method for the whole claim (not just the extra km).
- Records: you don't need written evidence of costs, but you must be able to show how you worked out your business kilometres (for example a diary or calendar of trips).
- Only business trips count. For a sole trader that's travel in running the business, such as between job sites or to suppliers. Private trips, including most home-to-regular-workplace travel, don't count.
- 2026-27 rate detail: 91c is a base rate of 89c plus a one-off 2c uplift for 2026-27, so expect the 2027-28 rate to be indexed from 89c, not 91c.
Rounding: the ATO's examples disregard the cents in the final claim (they don't round up). This calculator shows both.
Sources (checked 17 Oct 2026): ATO Cents per kilometre method (rates by year, 2,514 km example); Cents per Kilometre Deduction Rate for Car Expenses Determination 2026 (91c from 1 Jul 2026); ATO Software Developers note on the 89c base + 2c uplift; ATO Tax Time small business: motor vehicle expenses (5,000 km cap, records).
General information, not tax advice. Whether a trip is deductible depends on your circumstances. Check with the ATO or a registered tax agent. GST: the cents per km method is an income tax deduction; GST credits on car costs are worked out separately (see our rideshare GST guide).
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