ATO Cents Per Km Calculator
Use our ATO cents per km calculator to estimate your car-expense deduction using the cents per kilometre method.
For the 2026–27 income year, the ATO rate is 91 cents per work-related kilometre, up to a maximum of 5,000 kilometres per car. That means the maximum deduction under this method is $4,550 per car.
How the ATO cents per km calculator works
The cents per km deduction calculation is:
Cents per km deduction = eligible work-related kilometres × ATO rate
If using the cents per kilometre method, you can only claim up to 5,000 kilometres per car, per income year.
For 2026–27, the deduction calculation is as follows:
Deduction = eligible work-related kilometres (up to 5,000 km per car) x $0.91
If you enter more than 5,000 kilometres, the ATO calculator automatically caps the deduction at the first 5,000 eligible kilometres.
ATO cents per kilometre rates
Use the rate that applies to the income year in which you drove the kilometres.
The 91-cent rate for 2026–27 consists of an indexed base rate of 89 cents, plus a temporary 2-cent uplift that applies to that income year.
For example, any kilometres driven in June 2026 will use the 2025–26 rate of 88 cents, while eligible kilometres driven from 1 July 2026 onward will use the rate of 91 cents.
For more on how the ATO rate is set, eligible work travel and vehicle requirements, see our ATO Mileage Rates 2026 guide.
How the 5,000 km limit works
The 5,000 kilometre limit is a cap, not a threshold.
For example, if you drive 3,000 eligible work kilometres, your deduction is based on 3,000 km.
If you drive 5,000 eligible work kilometres, your deduction is based on 5,000 km.
Even if you drive 8,000 eligible work kilometres, your cents-per-kilometre deduction is still based on 5,000 km.
At the 2026–27 rate, 5,000 km × $0.91 = $4,550
For an individual taxpayer, the limit generally applies per car, per income year, and resets at the beginning of the next income year on 1 July.
If you use the cents per kilometre method for a car, you can't claim excess kilometres above 5,000 separately under the logbook method.
What if you drive more than 5,000 work kilometres?
If you drive more than 5,000 eligible work kilometres, it may be worth comparing the cents per kilometre method with the logbook method.
The cents per kilometre method is simpler, but its calculation is capped at 5,000 kilometres. The logbook method has no kilometre cap and calculates your deduction using your business-use percentage and eligible actual car expenses.
Which method produces the larger deduction depends on your circumstances.
Do you need a logbook for cents per kilometre?
No formal logbook or individual car-expense receipts are required when using the cents per kilometre method.
However, you do need to be able to show how you came up with the work-related kilometres you're claiming.
Records such as work schedules, diary entries and GPS trip histories can help support the calculation.
The ATO rate is all-inclusive, so you can't claim expenses such as fuel, registration, insurance, maintenance or decline in value for the same car under the cents per kilometre method.
Track work kilometres with Timeero
Accurate mileage records make it easier to calculate the work-related kilometres you enter into the calculator.
Timeero automatically records mileage and gives Australian businesses the option to report distance in kilometres. Mileage reports show the trip distances behind your calculations without requiring employees to manually reconstruct their travel later.
Learn more about automatic mileage tracking with Timeero.
Frequently asked questions
What is the ATO cents per km rate for 2026–27?
The ATO cents per kilometre rate is 91 cents per kilometre for the 2026–27 income year, which began on 1 July 2026.
What is the maximum cents-per-kilometre deduction for 2026–27?
At 91 cents per kilometre with the 5,000 km limit, the maximum deduction under the cents per kilometre method is $4,550 per car.
5,000 × $0.91 = $4,550 per car
What happens if I drive more than 5,000 km for work?
The cents per kilometre calculation still stops at 5,000 eligible kilometres. If your work-related travel exceeds the limit, you may want to compare the cents per kilometre and logbook methods for that car.
Do I enter my commute in the calculator?
Enter only kilometres that qualify as work-related travel under ATO rules. Ordinary travel between your home and regular workplace is generally private commuting and isn't deductible, although exceptions can apply.
Can I use this calculator for a ute?
You can use the cents per kilometre method only if the vehicle meets the ATO definition of a car. Some utes qualify if they are designed to carry less than one tonne and fewer than nine passengers.
Can I claim fuel on top of the cents per kilometre deduction?
No. The cents-per-kilometre rate is all-inclusive. You can't separately add fuel, registration, insurance, maintenance or decline in value for the same car when using this method.
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