How to use the car expenses deduction calculator
- 1 Enter your work kilometres for the year.
- 2 Check the cents per km rate, 91 cents for 2026-27.
- 3 Enter your total car running costs and logbook business use.
- 4 Enter your income and read the better method and tax saved.
Worked example
A worker drives 4,000 work km and has $9,000 of car costs with 30% business use. The cents per km method gives $3,640 and the logbook method $2,700, so cents per km is better. At a taxable income of $90,000, that saves about $1,165 of tax.
What car trips count
- Not claimable: normal trips between home and work, even if you work early or late or live far away.
- Claimable: driving between work sites, to meet clients, to deliver items, or carrying bulky tools you need for work with nowhere to store them at work.
- Logbook: keep it for at least 12 continuous weeks; it stays valid for five years if your use stays similar.
- Standard deduction: From 2026-27, the ATO applies a $1,000 standard deduction for work-related expenses automatically to people with labour income. Claiming actual work expenses reduces it dollar for dollar, so it only pays to claim and keep records if your expenses come to more than $1,000.
Work out fuel costs per trip with the Fuel Cost Calculator. Buying a car for work? See the Car Loan Calculator and the Depreciation Calculator.
Features
Cents per km
Up to 5,000 work kilometres a car.
Logbook method
Business share of all car running costs.
Best method
Picks the larger deduction.
Tax saving
Value of the deduction at your marginal rate.
When to use it
Tradies
Claim travel between job sites. See fuel per trip with the Fuel Cost Calculator.
Sales staff
Compare methods for high mileage. Claim the car itself with the Depreciation Calculator.
Second jobs
Travel between two workplaces. See your refund with the Tax Refund Calculator.
Logbook decisions
See if keeping a logbook is worth it. Financing a work car? See the Car Loan Calculator.
Related Tax tasks
Frequently asked questions
What is the cents per km method?
You claim a set rate for each work kilometre, up to 5,000 km per car a year. The rate covers all running costs, including depreciation, fuel, insurance and servicing.
What is the 2026-27 rate?
91 cents per kilometre from 1 July 2026, up from 88 cents. The rate is editable in case the ATO updates it.
What records do I need for cents per km?
You do not need written evidence of the kilometres, but you must be able to show how you worked them out, for example from diary records.
What is the logbook method?
You keep a logbook for a continuous 12-week period to work out your business use percentage, then claim that share of your actual car costs. A logbook is valid for five years.
What costs count for the logbook method?
Fuel, oil, registration, insurance, servicing, repairs, tyres, interest on a car loan and decline in value.
Can I claim driving to work?
Usually no. Trips between home and your regular workplace are private, unless you carry bulky tools or work at alternative workplaces.
What car trips can I claim?
Travel between two jobs, between workplaces, to meet clients and to alternative work sites.
Can I claim a car my employer gave me?
No. You cannot use these methods for a car your employer provides.
What if I travel more than 5,000 km?
The cents per km method is capped at 5,000 km, so the logbook method may give a larger claim.
Do motorbikes count?
No. Cars only. Motorbikes and vehicles carrying a tonne or more use actual costs.
Does the $1,000 standard deduction change my claim?
From 2026-27, the ATO applies a $1,000 standard deduction for work-related expenses automatically if you earn labour income. Work expenses you claim, including working from home and car costs, reduce it dollar for dollar, so only claim and keep records if your expenses come to more than $1,000.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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