Work car tax deduction calculator

Claim 88c a work km for up to 5,000 km in 2025–26 with the ATO cents per km method, or compare the logbook method.

per km, 2025–26
88c
per km, 2026–27
91c
top claim, 2025–26
$4,400
Income year
Income year and ATO rate
Work kilometres
Trips made for work, such as between workplaces or to clients. Home to a regular workplace does not count.
Logbook method (optional)
From odometer readings at the start and end of the year.
Estimated: 15,000 km at 8 L/100km and the U91 average of 226.4c. Replace it with your receipts.
Record fill-ups in your free logbook
Registration, insurance, servicing, tyres, loan interest and decline in value.

Example: 3,500 km of work driving in 2025–26

Example

Cents per km deduction, 2025–26

$3,080.00

3,500 km × 88c a km. The most you can claim per car is $4,400.00.

Work kilometres
3,500 km
ATO rate for 2025–26
88c/km
Cents per km deduction
$3,080.00
Logbook method: 23.3% work useof $7,716.80 car costs, fuel $2,716.80
$1,800.59
3,500 km of 5,000 km1,500 km left

The cents per km method claims $1,279.41 more.

  • Per km$3,080.00Larger claim
  • Logbook$1,800.59
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An estimate, not tax advice. Rates from the ATO cents per kilometre page.

Example: 3,500 km of work driving in 2025–26. Cents per km deduction, 2025–26. $3,080.00. 3,500 km × 88c a km. The most you can claim per car is $4,400.00.

Cents per km, 2025–26 · 3,500 km × 88c$3,080.00

Details

Cents per km rates by income year

The ATO rate is 88c a work kilometre for 2025–26, so a full 5,000 km claim is worth $4,400. It rises to 91c for 2026–27, worth $4,550 for the same distance, $150 more. In 2020–21 the rate was 72c, or $3,600 for 5,000 km.

  1. 2026–27: 91c/km

    $3,185 for 3,500 km · up to $4,550

  2. 2025–26: 88c/km

    $3,080 for 3,500 km · up to $4,400

  3. 2024–25: 88c/km

    $3,080 for 3,500 km · up to $4,400

  4. 2023–24: 85c/km

    $2,975 for 3,500 km · up to $4,250

  5. 2022–23: 78c/km

    $2,730 for 3,500 km · up to $3,900

  6. 2021–22: 72c/km

    $2,520 for 3,500 km · up to $3,600

  7. 2020–21: 72c/km

    $2,520 for 3,500 km · up to $3,600

Rates from the ATO Cents per kilometre method page, updated 12 August 2026. The rate covers every car running cost, fuel included.

How to work out the deduction

  1. Choose the income year

    Pick the year you are lodging for. Each year has its own ATO rate per kilometre, and a return lodged after 30 June uses the rate for the year that just ended.

  2. Add up your work kilometres

    Count trips made in the course of earning your income, such as driving between workplaces or to clients. Travel between home and a regular workplace does not count.

  3. Cap it and apply the rate

    Count at most 5,000 work kilometres per car and multiply them by the rate for the year. The rate already covers fuel, servicing, registration, insurance and decline in value.

  4. Compare the logbook method

    With a 12-week logbook, you can instead claim your work-use percentage of the actual car costs. That can be larger when you drive more than 5,000 work kilometres.

Keep the records the ATO asks for

The logbook method needs receipts for fuel and other car costs. Your FuelRadar logbook keeps the fuel side.

FuelRadar fuel logbook preview with sample data: fill-ups, litres recorded and net fuel spend above the fill-up form
Preview with sample data
Every fill-up, by car
Record the station, litres and the price from each receipt. The logbook adds up the litres and fuel spend for each car.
Your fuel in the calculator
Signed in, the calculator above reads a year of fill-ups from your logbook for the logbook method, instead of an estimate.
Work trips, free
Log each work trip in your account and download the income year’s cents per km summary as a PDF, at no cost.

CSV export is part of FuelRadar+

Downloading your trips or fill-ups as a CSV file for an accountant or spreadsheet comes with FuelRadar+. The PDF summary stays free.

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Work car deduction questions

What is the ATO cents per km rate for 2025–26?

88c a work kilometre for 2025–26 and 91c for 2026–27. You can claim up to 5,000 work km per car, so the most you can claim for 2025–26 is $4,400.

What does the cents per km rate cover?

Every running cost of the car: fuel, servicing, repairs, registration, insurance and decline in value. You cannot claim any of them on top of the rate.

Do I need receipts for the cents per km method?

No. You need to show how you worked out your work kilometres, for example a diary of work trips, and that you own or lease the car.

When is the logbook method better?

When your work share of the car’s real costs beats the rate, often above 5,000 work km, since the logbook method has no kilometre cap. It needs a logbook kept for 12 continuous weeks and receipts. In the example above, 3,500 work km of 15,000 (23.3%) claims $1,800.59 under the logbook method against $3,080.00 at 88c a km.

Can I claim the drive from home to work?

Usually not. Trips between home and a regular workplace are private. Driving between two workplaces, to clients, or carrying bulky tools you need for work can count.