Tax guide

How to Claim Travel Allowance in South Africa

If you receive a travel allowance from your employer or use your own vehicle for business purposes, you can claim a significant tax deduction. SARS provides two methods: the actual cost method (with a logbook) and the deemed cost method.

Actual Cost Method (Logbook Required)

Keep a detailed logbook recording every business trip: date, destination, purpose, and kilometres driven. At year-end, calculate your total business kilometres vs personal kilometres. Claim the business percentage of all vehicle costs: fuel, maintenance, insurance, licence fees, finance charges, and wear-and-tear. SARS caps the vehicle cost used in that working — use the current prescribed-rate table on sars.gov.za.

Deemed Cost Method (No Logbook)

If you don't keep a logbook, SARS applies a prescribed rate per kilometre based on the value of your vehicle. This is simpler but usually results in a smaller deduction. SARS publishes these rates annually in the Government Gazette.

Who Should Keep a Logbook?

If you drive more than 10,000 business kilometres per year, the actual cost method almost always yields a larger deduction. Sales reps, estate agents, and anyone with a travel allowance should keep a logbook. Digital logbook apps are accepted by SARS.

How to keep a logbook SARS will read

Start on 1 March. Record trips when you drive them — do not rebuild a year from memory in February. Include travel between work sites and client visits. Home to a fixed office is commuting. Keep fuel and maintenance slips if you use actual cost.

Disclaimer: This is general guidance based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2026/2027 year of assessment (1 March 2026 – 28 February 2027). It is not professional tax advice. Deductibility depends on your facts. Confirm current figures on sars.gov.za before you file.

Find the travel and vehicle claims in your bank statements

Upload bank statements. Taxzi flags lines that may qualify under SARS rules. Mixed shops stay out until you say what they were. You confirm every claim. This is guidance — not a filed return.

Works with FNB, Standard Bank, Absa, Nedbank, Capitec, Investec and Discovery Bank PDF statements.

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