ATO cents per km rate 2026-27: 91¢ per km

From 1 July 2026, the ATO cents per kilometre rate for car expenses is 91¢ per km, for up to 5,000 business km per car each income year. Before that it was 88¢ per km, for up to 5,000 business km per car each income year.

Checked against Australian Taxation Office on 1 October 2026. Official source

Who uses this rate

• Employees and sole traders who claim car expenses for work travel on their tax return.
• The cents per km method caps the claim at 5,000 business kilometres per car each income year.

What your mileage log needs

You don't need a logbook for the cents per km method, but you must be able to show how you worked out your business kilometres, for example with diary records of each trip. Above 5,000 km, the logbook method needs a 12-week logbook.

Good to know

• The income year runs from 1 July to 30 June.
• The rate covers all running costs, including fuel, insurance, registration, repairs and depreciation.
• Trips between home and your regular workplace are usually private.

Rate history

Guides

• Can I claim mileage if my employer reimburses me?
• Commute or business trip: what counts as business mileage?
• ATO logbook method vs cents per km: which should you use?

Rates in other countries