Calculate your work-related car expense deduction using the ATO cents per kilometre method. Enter your business kilometres and this tool applies the current FY 2025-26 rate of 88 cents per kilometre, automatically enforcing the 5,000km-per-car cap. It shows your claimable kilometres, the deduction amount, and flags when the logbook method might give you a larger claim. Free, accurate, and calculated entirely in your browser — no signup required.
Maximum 5,000 km per car under this method.
ATO rate for FY 2025-26 is 88c/km. The ATO sets this each year.
Claimable kilometres
0 km
Deduction
$0.00
The 88c/km rate covers all running costs (fuel, rego, insurance, servicing and depreciation), so you can't claim those separately. The 5,000 km cap is per car. Also try the vehicle rego cost calculator, the sole trader tax calculator, or estimate the tax saved with the income tax calculator.
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The cents per kilometre method is the simplest way to claim a deduction for work-related car expenses on your Australian tax return. You multiply the number of business kilometres you travelled by a single rate set by the ATO each year. That rate is designed to cover all of your running costs — fuel, oil, registration, insurance, servicing, repairs and depreciation — so you can't claim any of those costs separately on top of it.
Worked example. You drove 4,200 kilometres for work this year. Your deduction is 4,200 × $0.88 = $3,696. If instead you drove 6,500 work kilometres, the method caps your claim at 5,000 km, so your deduction is 5,000 × $0.88 = $4,400 — the maximum under this method for FY 2025–26.
Because the cents per kilometre method is capped at 5,000 km per car (a maximum deduction of $4,400 at the current rate), it tends to suit people who use their car for work occasionally. If you regularly travel well beyond 5,000 work kilometres, the logbook method — which claims your actual running costs multiplied by your business-use percentage, with no kilometre cap — will often produce a larger deduction. The trade-off is more record-keeping: you need a valid 12-week logbook and receipts for your car expenses.
You don't need a formal logbook for the cents per kilometre method, but you do need to be able to show how you worked out your business kilometres — for example a diary of work trips or a reasonable estimate based on a regular pattern of travel. You also need to be able to show that you owned or leased the car. Keep these records for five years. The rate is reviewed and set by the ATO each income year, so always check the current figure before lodging.
The ATO cents per kilometre rate for the 2025-26 income year is 88 cents per kilometre. This is the same rate as 2024-25. The rate covers all your car running costs — including fuel, registration, insurance, servicing and depreciation — so you can't claim those separately on top of it.
You can claim a maximum of 5,000 work-related kilometres per car, per year, using the cents per kilometre method. At 88c/km that caps the deduction at $4,400 per car for FY 2025-26. If you drive more than 5,000 work-related kilometres, the logbook method often gives a larger deduction.
Multiply your work-related kilometres (capped at 5,000) by the ATO rate of 88 cents. For example, 4,200 work km × $0.88 = $3,696. If you travelled 6,500 km, you can only claim 5,000 km × $0.88 = $4,400 under this method, so a logbook may be worth considering.
No formal logbook is required, but you must be able to show how you worked out your business kilometres — for example a diary of trips, a record of a typical week's travel, or a calculation based on regular journeys. You also need to be able to show you owned or leased the car. Keep these records for five years.
The cents per km method uses a flat 88c/km on up to 5,000 km with minimal record-keeping. The logbook method claims your actual running costs multiplied by your business-use percentage (from a 12-week logbook), with no kilometre cap. High-mileage business drivers usually claim more with the logbook method; occasional users prefer cents per km for its simplicity.
Yes. The 5,000 km cap applies per car, so if you used two cars for work you can claim up to 5,000 km on each (a separate calculation per vehicle). The 88c/km rate is the same for every car. You can also use a different method for each car.
Sources & methodology
This calculator applies the ATO cents per kilometre method: deduction = work-related kilometres (capped at 5,000 per car) × the cents-per-km rate. The rate defaults to 88 cents for FY 2025-26 (unchanged from FY 2024-25), and the 5,000 km cap is enforced automatically. Everything is computed in your browser — nothing you enter is stored or sent to a server.
Authoritative sources
Reviewed by Bishal Shrestha — Founder of OneBookPlus, 10+ years building tools with Australian tax-agent and BAS-agent practices. Last reviewed and updated: June 2026.
Disclaimer: This calculator produces estimates only and is not tax advice. Tax outcomes depend on your individual circumstances. For decisions that affect your tax position, consult a registered tax agent or the ATO directly.
OneBookPlus handles invoicing, GST tracking, BAS prep, and ATO lodgement automatically.