Who the SARS mileage rate is really for

Search for the SARS mileage rate and the first number you will see is R4.95 per kilometre. It is a real figure, published by SARS for the current tax year. It is also one of the most misread numbers in South African tax, because it does not apply to everyone who drives for work.

This guide covers what the rate is, how it is set, who it is meant for, what self-employed people claim instead, and the logbook you need either way.

What the SARS kilometre rate is

SARS publishes a set of rates per kilometre every year under section 8(1) of the Income Tax Act. That section deals with allowances and reimbursements that an employer pays an employee for using a private vehicle on business.

The rates do two jobs:

1. They set a tax-free limit for per-kilometre reimbursements.If an employer pays an employee back for actual business kilometres at or below the published rate, and the employee receives no other allowance or reimbursement for that vehicle (parking and toll fees aside), no tax is payable on that reimbursement.
2. They give employees with a travel allowance a way to work out their deduction.Instead of claiming actual costs, an employee can use a cost scale table to calculate the cost of their business travel.

In both cases, the starting point is an employer paying an employee. Keep that in mind, because it decides whether the rate is relevant to you at all.

How the rate is set

Each year the Minister of Finance approves a new table of rates per kilometre for motor vehicles, which is then published as a notice in the Government Gazette. For the 2027 year of assessment, SARS confirmed the approval on 25 February 2026, the day of the Budget Speech.

The table works in bands of vehicle value. Each band carries a fixed cost, a fuel cost and a maintenance cost, so the rate reflects what it costs to own and run a car of that value. Alongside the table, the notice fixes a single simplified rate that applies regardless of the vehicle. That simplified rate is the R4.95 figure you see quoted everywhere.

The current rate for 2026/27

In practice, this means an employer can reimburse an employee up to R4.95 for each business kilometre without the payment being taxed. If the employer pays a higher rate, the portion above R4.95 is treated as taxable pay and goes through payroll.

If you are a freelancer or sole proprietor

This is where many mileage guides go wrong. If you work for yourself, nobody pays you a travel allowance or a per-kilometre reimbursement. The section 8(1) rates are built for that employer and employee arrangement, so they are not the method for your claim.

Instead, your vehicle costs are claimed as business expenses, based on what you actually spent, and only for the business share of your driving. In broad terms:

1. Keep a record of all your vehicle costs for the tax year.Fuel, oil, repairs and maintenance, licence, insurance, wear and tear, and finance charges or lease costs.
2. Work out your total kilometres for the year.Use your opening and closing odometer readings.
3. Add up your business kilometres.Take these from your logbook.
4. Claim the matching share of your costs.Your business kilometres as a share of your total kilometres is the share of vehicle costs you claim.

Business trips count. The daily drive between home and your regular place of work does not.

Not sure whether a cost is business or personal in the first place? Our guide Can I claim it? walks through the four questions SARS applies to every expense.

If you earn a salary with a travel allowance as well as freelance income, the position is different again. That is a good reason to speak to a registered tax practitioner before you file.

How to keep a logbook SARS will accept

Whichever method applies to you, SARS expects a logbook. It asks you to record the following:

Paper, spreadsheet or app: SARS cares that the record is complete and kept as you go.

A few other rules are worth knowing:

• Private trips do not need to be recorded in detail.
• Daily odometer readings are not required.
• More than one vehicle used for business means a separate logbook for each one.
• Five years is how long you must keep your logbook from the date you submit your return, in case SARS asks to see it.

SARS publishes a free eLogbook template every year, including one for the 2026/27 tax year, if you prefer to keep your record on paper or in a spreadsheet.

Common mistakes

1. Using R4.95 when it does not apply.Multiplying business kilometres by the published rate is an employee method. If you are self-employed, your claim rests on actual costs and your logbook.
2. Claiming the commute.Travel between home and your regular place of work is private travel in SARS's eyes, however far it is.
3. Missing the 1 March reading.Without an opening odometer reading, there is no reliable total for the year, and your business share is hard to defend.
4. Rebuilding the logbook at year end.A record pieced together from memory and old calendars months later is weaker evidence than one kept as you go.
5. Vague trip purposes."Meeting" says very little. "Site visit, client in Bellville" says what the trip was for.
6. Throwing away vehicle receipts.If you claim actual costs, the logbook proves the business share, but the receipts prove the costs. You need both.