Work out your car expense deduction with the ATO's cents per kilometre method, and the tax it saves.
Estimate my kilometres
Key facts
- The ATO's cents per kilometre rate is 91 cents per work-related kilometre for 2026–27.
- You can claim up to 5,000 work-related kilometres per car, so the most you can claim is $4,550.
- The rate covers all your car costs (fuel, registration, insurance, servicing and depreciation), so you can't claim any of them on top.
- You don't need receipts, but you need a record of how you worked out your kilometres (a diary or the myDeductions tool) and must own or lease the car.
- Normal trips between home and your regular workplace don't count as work-related kilometres.
Cents per km rates by year
| Income year | Rate per km | Maximum claim (5,000 km) |
|---|---|---|
| 2026–27 | 91 cents | $4,550.00 |
| 2025–26 | 88 cents | $4,400.00 |
| 2024–25 | 88 cents | $4,400.00 |
| 2023–24 | 85 cents | $4,250.00 |
| 2022–23 | 78 cents | $3,900.00 |
| 2021–22 | 72 cents | $3,600.00 |
| 2020–21 | 72 cents | $3,600.00 |
Deduction by kilometres (2026–27)
| Work kilometres | Deduction |
|---|---|
| 500 km | $455.00 |
| 1,000 km | $910.00 |
| 2,000 km | $1,820.00 |
| 3,000 km | $2,730.00 |
| 4,000 km | $3,640.00 |
| 5,000 km | $4,550.00 |
Common questions
What is the ATO cents per km rate for 2026–27?
91 cents per kilometre, up from 88 cents in 2025–26.
How many kilometres can I claim?
Up to 5,000 work-related kilometres per car each income year. If you travel more, the logbook method may give you a bigger deduction.
How do I work out my work kilometres?
Make a reasonable estimate from your diary. In the ATO's example, Johan's 46 weekly 27 km trips and 12 monthly 106 km trips add up to 2,514 km, a deduction of $2,212 at 88 cents.
Can I claim driving to work?
Generally no. Trips between home and your usual workplace are private, even if you do some work on the way. Trips between workplaces, to clients or to carry bulky tools can count.
How much tax will the deduction save?
Your marginal tax rate times the deduction. At 2026–27 rates, a $2,275.00 claim saves about $728.00 on an income of $85,000.
See also the tax refund calculator, the ATO meal and travel allowance rates and the sole trader tax calculator.
Source: ATO, cents per kilometre method (updated 12 August 2026). Checked 22 October 2026.