FBT car calculator 2026-27 (statutory and operating cost)
Work out the fringe benefits tax on a car for the FBT year 1 April 2026 to 31 March 2027. Use the statutory formula method (20% of the base value), the operating cost method (logbook private use), or both to see which is lower. You get the taxable value, the grossed-up amount, the FBT at 47%, the employee contribution that would remove the FBT (as in many novated leases), and the employee's reportable fringe benefit. It follows the ATO's formulas and matches the ATO's worked examples.
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CalculatorWorked examplesHow it worksFAQ
Worked examples
ATO example (statutory formula): a car with a base value of $32,000 is available for private use from 1 July 2025 to 31 March 2026 (274 days). No employee contribution. Taxable value = $32,000 × 20% × 274 ÷ 365 = $4,804.
ATO example (operating cost): operating costs of $10,000 and 30% private use from the logbook give a taxable value of $10,000 × 30% = $3,000.
ATO example (gross-up and FBT): Type 1 benefits of $16,500 × 2.0802 = $34,323, plus Type 2 benefits of $6,000 × 1.8868 = $11,321. Total $45,644 × 47% = $21,452.68 FBT.
Full year, 2026-27: a $45,000 car available all year, GST credits claimed, no contribution. Taxable value = $45,000 × 20% = $9,000. Grossed up: $9,000 × 2.0802 = $18,722. FBT = $8,799.34. If the employee pays $9,000 after tax towards the car, the taxable value and FBT are nil. The employee's reportable fringe benefit without a contribution is $9,000 × 1.8868 = $16,981.
How it works
- Statutory formula: (A × 20% × C ÷ D) − E. A is the base value, C the days available for private use, D the days in the FBT year (365, or 366 in the year ending 31 March 2028), and E the employee contribution. After 4 full FBT years the base value drops by one-third (once).
- Operating cost: (operating costs × private use %) − E. For a car you own, operating costs include deemed depreciation (25% of the depreciated value) and deemed interest (benchmark rate: 8.27% for 2026-27, 8.62% for 2025-26). You need a valid logbook and odometer records.
- Gross-up and rate: × 2.0802 if you can claim GST credits (Type 1), otherwise × 1.8868 (Type 2), then × 47%.
- Reportable fringe benefits: if an employee's taxable value is over $2,000, it's grossed up at 1.8868 and shown on their income statement. It counts for things like HELP repayments and the Medicare levy surcharge.
FAQ
How is FBT on a car calculated?
Work out the taxable value: with the statutory formula it’s 20% of the car’s base value for each day it’s available for private use, minus employee contributions. Then gross it up (× 2.0802 if the employer claims GST credits) and multiply by the 47% FBT rate.
How much FBT is payable on a $45,000 car?
For a full year with GST credits claimed and no employee contribution: taxable value $9,000, grossed up to $18,722, so FBT of $8,799.34. An after-tax employee contribution of $9,000 would reduce it to nil.
What is the FBT rate for 2026-27?
47% for the FBT year 1 April 2026 to 31 March 2027. The Type 1 gross-up rate is 2.0802 and the Type 2 rate is 1.8868.
Statutory formula or operating cost method: which is better?
You can choose whichever gives the lower taxable value each year. The operating cost method usually wins when business use is high and you keep a valid logbook. Otherwise the statutory formula is simpler.
Are electric cars exempt from FBT?
Zero or low emission cars that cost less than the fuel-efficient luxury car tax threshold, and were first held and used on or after 1 July 2022, are exempt. Plug-in hybrids generally stopped qualifying from 1 April 2025, unless a commitment was in place before then. The taxable value is still a reportable fringe benefit for the employee.
When is the base value of a car reduced?
Once a car has been held for 4 full FBT years at the start of a year, its base value drops by one-third. The reduction happens only once.
Sources (checked 17 Oct 2026): ATO Taxable value of a car fringe benefit; ATO FBT rates and thresholds; ATO Calculating your FBT; ATO FBT return 2026 instructions, item 23 (examples 6 and 7).
General information, not tax advice. Exemptions (such as some work utes and eligible electric cars) and record-keeping rules affect the result. Check with the ATO or a registered tax agent.