Vehicle

AA Rate per KM 2026 — Calculator & Guide

The new SARS prescribed rate for the 2027 tax year is R4.95 per kilometre, effective from 1 March 2026. Use the calculator below to compare it against the SARS cost-scale rate for your specific vehicle.

Updated 11 May 2026 • By Sipho Dlamini • Fact-checked

Rate per KM Calculator

SARS 2027 tax year · effective 1 March 2026

Vehicle purchase price R 300,000

R80kR1.5m

Total annual distance (km)

Business kilometres

Your vehicle's SARS band

Fixed cost: R98,689 / year
Fuel cost: 161.2c / km
Maintenance cost: 67.8c / km

Your cost-scale rate

R5.37 /km

Fixed (R3.08) + Fuel (R1.61) + Maintenance (R0.68)

If you claim 15,000 business km

Cost-scale claim

R80 610

Simplified (R4.95/km)

R74 250

R6 360 difference. A cost-scale claim needs a SARS-compliant logbook, otherwise the simplified rate caps your tax-free reimbursement.

Source: SARS PAYE-GEN-01-G03-A01 Rate per Kilometre Schedule, 2027 tax year. Effective 1 March 2026. The AA publishes its own cost-of-running estimates which differ slightly (typically higher for premium vehicles).

SARS rate per km 2026/27

The South African Revenue Service publishes two rates each tax year, both gazetted by the Minister of Finance. For the 2027 tax year (1 March 2026 to 28 February 2027):

Simplified rate

R4.95/km

Tax-free reimbursement cap. No logbook required if it's your only travel compensation.

Cost-scale rate

Variable

Based on your vehicle value, total km, and actual fuel/maintenance costs borne. Logbook required.

Tip: Most employees default to the simplified R4.95/km. The cost-scale rate is usually higher for vehicles over R460,000 — but you must keep a SARS-compliant logbook to claim it.

SARS cost scale (2027 tax year)

The complete cost scale gazetted by SARS on 25 February 2026, effective 1 March 2026. The total rate per km is (fixed cost ÷ annual km) + fuel + maintenance.

Vehicle value	Fixed (R/year)	Fuel (c/km)	Maint (c/km)
≤ R115,000	38,344	132.9	49.1
R115,001 – R230,000	68,487	148.4	61.4
R230,001 – R345,000	98,689	161.2	67.8
R345,001 – R460,000	125,393	173.4	74.0
R460,001 – R575,000	152,097	185.5	86.9
R575,001 – R690,000	180,078	212.8	102.0
R690,001 – R805,000	208,106	216.5	114.5
R805,001 – R920,000	237,679	220.1	126.1
> R920,000	237,679	220.1	126.9

Source: SARS PAYE-GEN-01-G03-A01 Rate per Kilometre Schedule (2027 Tax Year), gazetted 25 February 2026.

SARS rate history

2027 tax year (Mar 2026 – Feb 2027)R4.95/km
2026 tax year (Mar 2025 – Feb 2026)R4.76/km
2025 tax year (Mar 2024 – Feb 2025)R4.84/km
2024 tax year (Mar 2023 – Feb 2024)R4.64/km

The 2026/27 rate is a 4.0% increase, driven by higher fuel and maintenance costs.

SARS rate per km history chart 2024 to 2027 showing R4.64, R4.84, R4.76, R4.95 progression — SARS prescribed rate per kilometre — 4-year history.

AA tariewe per km 2026 — opsomming in Afrikaans

Die nuwe SAID-voorgeskrewe tarief vir die 2027-belastingjaar (1 Maart 2026 tot 28 Februarie 2027) is R4,95 per kilometer. Dit is die maksimum belastingvrye terugbetaling wat 'n werkgewer per sake-kilometer kan betaal sonder dat 'n rylogboek nodig is — solank dit jou enigste reisvergoeding is.

Die AA (Automobiel Assosiasie van Suid-Afrika) publiseer afsonderlik sy Voertuig Lopende Koste-syfers wat afskrywing, finansiering, versekering, brandstof, dienste en bande insluit. Hierdie syfers is gewoonlik 'n paar rand per km hoër as die SAID-tarief, veral op duurder voertuie. Gebruik die SAID-tarief vir jou belastingopgawe; gebruik die AA-syfers om te bereken wat dit werklik kos om jou voertuig te besit.

Vinnige antwoorde

Wat is die AA tarief per km vir 2026? R4,95/km (vereenvoudigde SAID-koers, geldig 1 Maart 2026).
Het ek 'n rylogboek nodig? Nee — nie vir die vereenvoudigde R4,95-koers nie, mits jy geen ander reisvergoeding ontvang nie.
Kan ek my rit werk toe eis? Nee. SAID beskou huis-tot-werk-reise as privaat. Slegs sake-kilometers tel.
Diesel of petrol? Die SAID-skaal onderskei nie tussen brandstoftipes nie; diesel is gewoonlik 5–10% goedkoper per km in praktyk.

Vir die volledige koersskaal, gebandeer volgens voertuigwaarde, sien die tabel hierbo. Bronne: SAID PAYE-GEN-01-G03-A01 (2027-belastingjaar).

Subsistence allowances 2026/27

If your employer provides a daily subsistence allowance instead of (or in addition to) the travel rate, the tax-free maximum amounts effective 1 March 2026 are:

Meals + incidental (local)

R595/day

For overnight business travel in South Africa.

Incidental only (local)

R184/day

Where meals are also reimbursed at actual cost.

Foreign-travel subsistence rates are published per country in the SARS PAYE-GEN-01-G03-A02 annexure. Looking for other tax-deductible items? See our guides on choosing a retirement annuity and tax-free savings accounts (TFSA).

AA rate vs SARS rate — the difference

AA rate

Industry estimate

The Automobile Association of South Africa publishes Vehicle Running Cost (VRC) estimates that include depreciation, finance, insurance, licensing, fuel, services and tyres.

Use it to sanity-check what owning the car actually costs you.

SARS rate

Tax rule

SARS publishes both a cost scale (banded by vehicle value) and a simplified rate (R4.95/km for 2026/27) used as the tax-free reimbursement benchmark.

Use this for your tax return and your travel allowance.

Worked examples (2026/27)

Example 1: Real-estate agent

An agent drives a Hyundai i20 (R280,000). 38,000 km/year, 22,000 km business. SARS cost-scale rate ≈ R4.84/km; annual cost-scale claim = R106,500. SARS simplified at R4.95/km = R108,900. With minimal business mileage and a mid-priced car, the simplified rate wins — no logbook needed. If the vehicle was bought on finance, also factor in how car finance interest interacts with your claim.

Example 2: Field-services engineer

A Hilux 2.8 diesel (R620,000). 55,000 km/year, 40,000 km business. SARS cost-scale rate ≈ R6.42/km; annual cost-scale claim = R256,800. Simplified = R198,000. The R58,800 gap is worth keeping a logbook for.

Example 3: Hybrid-work consultant

A Golf (R420,000). 18,000 km/year, only 6,000 km business. SARS cost-scale ≈ R9.43/km because fixed costs spread over low mileage; cost-scale claim = R56,600. Simplified = R29,700. Cost scale wins, but the logbook overhead is hard to justify for 6,000 km.

What a SARS logbook must contain

A logbook is the difference between a deductible cost-scale claim and a fully taxable allowance. SARS requires the following per business trip:

Date	Open km	Close km	Distance	Reason
06/05/26	85,230	85,288	58 km	Client – ABC Ltd, Sandton
06/05/26	85,288	85,322	34 km	Site visit – Midrand
07/05/26	85,322	85,355	33 km	Private

Record opening and closing odometer readings on the first and last day of the tax year (1 March – 28/29 February). The SARS eLogbook is available as a free download from sars.gov.za. If your driver's licence is up for renewal mid-tax-year, see our drivers' licence renewal cost guide and NaTIS online booking walkthrough.

Frequently asked questions

What is the SARS rate per km for 2026 in South Africa? +

For the 2027 tax year — running from 1 March 2026 to 28 February 2027 — the SARS simplified prescribed rate is R4.95 per kilometre, up from R4.76 the previous year. This is the maximum tax-free reimbursement an employer can pay per business kilometre without you needing a logbook.

What is the difference between the AA rate and the SARS rate? +

The AA (Automobile Association of South Africa) publishes vehicle-running-cost estimates as a benchmark for travel claims. SARS publishes its own cost scale and a simplified rate (R4.95/km for 2026/27) used for tax-free reimbursements. The AA rate often runs a few rand per km higher than SARS, especially on premium vehicles. If your employer reimburses above the SARS rate, the excess is taxable unless backed by a logbook.

Can I claim AA or SARS rates for my commute to work? +

No. SARS treats home-to-work travel as private. Only kilometres travelled for business — client meetings, site visits, between-office travel — can be claimed against a travel allowance.

Do I need a logbook to claim the SARS rate? +

For the simplified prescribed rate (R4.95/km), no logbook is required as long as you receive no other compensation (other than parking and tolls). For the higher SARS cost-scale rate, or to deduct actual business expenses, you must keep a logbook showing date, opening odometer, closing odometer, distance and business purpose for each trip.

How is the SARS cost scale calculated? +

The cost per km is the sum of three components published annually by SARS: (1) an annual fixed cost divided by your total annual kilometres, (2) the fuel cost per km, and (3) the maintenance cost per km — all banded by the value of your vehicle.

Is the AA rate the same as the SARS rate? +

No. They are two different things and people confuse them constantly. The AA rate is industry data on running costs. The SARS rate is the tax rule for what counts as a tax-free travel allowance. Use the SARS rate for your tax return; use the AA rate to sanity-check what driving actually costs you.

What are the SARS subsistence allowances for 2026/27? +

For travel within South Africa requiring at least one overnight stay: R595 per day for meals and incidental costs, or R184 per day for incidental costs only. These are tax-free if the employee actually travelled.

Is diesel cheaper per km than petrol? +

The SARS cost scale does not distinguish between diesel and petrol — the published fuel-cost figures are weighted averages. In practice, diesel vehicles typically cost 5–10% less per km in fuel due to better efficiency, but diesel vehicles often cost more upfront. For drivers above ~35,000 km a year, diesel usually wins on total cost of ownership.

Sources

· SARS PAYE-GEN-01-G03-A01: Rate per Kilometre Schedule (2027 Tax Year). Gazetted 25 February 2026.
· SARS Subsistence Allowance: External Annexure for the 2027 tax year (local and foreign rates).
· SARS PAYE-GEN-01-G03: Guide for Employers in respect of Allowances (2027 tax year).
· AA Vehicle Rates Calculator: aa.co.za/vehicle-rates-calculator.

MoneyToday is an editorial publication. Figures on this page are taken from the published SARS Government Gazette notice and are not personal tax advice. For a binding tax position consult SARS or a registered tax practitioner.

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