SARS Rate Per Kilometre 2026/27: The R4.95 Reimbursive Rate Explained

For the tax year running 1 March 2026 to 28 February 2027, the SARS prescribed rate per kilometre is R4.95, up from R4.76 the year before. It is a small change with a specific job, and it is easy to apply the wrong number in the wrong place. This guide explains what the rate is for, when travel paid at it stays tax-free, and how it differs from the deemed-cost tables you use when you claim against a travel allowance.

The essentials

• The prescribed (reimbursive) rate for 1 March 2026 to 28 February 2027 is R4.95 per kilometre (previously R4.76).
• A per-kilometre reimbursement for business travel is tax-free up to R4.95/km. Pay above that, and the excess is taxable.
• This rate is for reimbursements. It is not the same as the deemed-cost tables you apply to a travel allowance.
• Either way, you still need a logbook to support the business kilometres.

What the prescribed rate is for

The prescribed rate per kilometre is the figure SARS uses for reimbursive travel: when an employer pays you back for actual business trips at a set amount per kilometre. As long as the rate paid is no higher than R4.95 per kilometre for 2026/27, and it is a genuine reimbursement for business travel, that money is tax-free in your hands.

Multiply your business kilometres by the rate and you have the reimbursement. Drive 800 business kilometres in a month and get reimbursed at R4.95, and you receive R3,960 tax-free, provided the trips are logged.

When it stays tax-free, and when it does not

Two things push a reimbursement into taxable territory:

• Paying above the rate. If your employer reimburses at, say, R5.50 per kilometre, the portion above R4.95 is taxable and goes through payroll.
• Mixing a reimbursement with a travel allowance. If you receive a fixed travel allowance as well, the per-kilometre reimbursement is treated differently and can become taxable. This is where a lot of people get caught, because the two look similar on a payslip but are taxed on different rules.

In both cases the fix is the same: keep a logbook so the business portion is provable, and let the numbers, not an estimate, decide what is taxable.

Why it is not the deemed-cost rate

This is the distinction that trips people up. There are two separate SARS mechanisms, and R4.95 belongs to only one of them:

• The reimbursive rate (R4.95/km) applies when you are reimbursed per kilometre. One number, applied to your business kilometres.
• The deemed-cost tables apply when you claim a deduction against a travel allowance. These are not a single rate: SARS publishes a schedule with a fixed cost, a fuel cost and a maintenance cost for each vehicle-value band, and you apply the bands that match your car.

So if you have a travel allowance and you are working out your deduction, R4.95 is the wrong figure to reach for. You use the deemed-cost tables (or the actual-cost method), both explained in our SARS travel logbook guide. If you are reimbursed per kilometre, R4.95 is exactly the number you want.

The one thing both methods share

Whichever applies to you, none of it works without a record of your business kilometres. SARS accepts a logbook, not an estimate, and it wants the date, the destination, the reason and the kilometres for every business trip, kept for five years.

The costs behind the trips matter too, especially if you claim actual running costs rather than the deemed tables. Capture every fuel, service and insurance slip through the year with SparkReceipt, and pull the rest off your bank statement, and the receipts are already filed and matched when it is time to file. Record the kilometres with SparkReceipt's mileage tracker, keep the costs in the same app, and the travel claim comes together in minutes.

This guide is general information, not tax advice. Rates and rules change, and your situation may differ. Confirm the current figures on the SARS website or with a registered tax practitioner before you file.