Company Car Fringe Benefit and Travel Allowance Tax Calculator (2026/2027)

A company car is a fringe benefit. Each month 3.5% of the car's determined value is its taxable value (3.25% if the employer pays for a maintenance plan). For PAYE, 80% of that benefit is included in your remuneration, or 20% if at least 80% of the use is for business. For a R400,000 car with no maintenance plan, the benefit is R14,000 a month and R11,200 is added to your PAYE remuneration (2026/2027 figures).

The determined value is the cash cost of the car including VAT, excluding finance charges. For a car the employer bought, it is the retail market value or invoice price at the time of purchase. SARS applies the monthly rate to this value.

80% of a fixed monthly travel allowance is included in your remuneration for PAYE, reduced to 20% if at least 80% of your use of the car is for business. At assessment you can claim business kilometres from a logbook against the allowance.

Not normally for the same vehicle. A company car is a fringe benefit and a fixed travel allowance is paid to you for using your own car, so you would usually have one or the other. The calculator lets you fill in both so each line can be shown, and the 80% business-use test is applied to each separately (80% included, or 20% at 80% or more business use).

SARS sets a rate of R4.95 per kilometre for 2026/2027. If your employer reimburses actual business kilometres, backed by a logbook, at or below this rate, no PAYE is withheld on the reimbursement.

No. The calculator shows the extra PAYE as withheld: it adds the included part of the benefit and allowance to your salary for the year and compares the tax with and without it. Your final tax is worked out at assessment on the full benefit less any business-use relief you claim from your logbook, so it can differ from PAYE. The figures are checked against SARS for 2026/2027.