What is the cents per kilometre rate for 2026-27?

91 cents per kilometre for the 2026-27 income year, set by the Income Tax Assessment (Cents per Kilometre Deduction Rate for Car Expenses) Determination 2026 (LI 2026/19, registered 23 June 2026 as F2026L00785). The rate was 88 cents for both 2025-26 and 2024-25, 85 cents for 2023-24 and 78 cents for 2022-23. Use the rate for the income year of the claim, not the year you lodge in.

Is the cents per kilometre method or the logbook method better?

It depends on how far you drive for work. Cents per kilometre is capped at 5,000 work-related kilometres per car per year, so the most it can ever produce is $4,400 at the 2025-26 rate of 88 cents, or $4,550 at the 2026-27 rate of 91 cents. The logbook method has no kilometre cap: it claims your work-use percentage of every actual car expense, including decline in value. Above roughly 5,000 work kilometres, or on an expensive car, the logbook method usually wins — but only if you hold a valid logbook.

How long does an ATO logbook have to be, and how long is it valid?

A logbook must cover at least 12 continuous weeks and be broadly representative of your travel. It records the reason, purpose and destination of every work journey, the odometer reading at the start and end of each journey, and the total kilometres for the journey and for the logbook period. Once made it stays valid for 5 years, unless your circumstances change enough that the percentage is no longer representative. You must keep the logbook and odometer records for 5 years after the last income year you rely on them.

Can I claim depreciation on my car under the cents per kilometre method?

No. The cents per kilometre rate already covers every car expense — fuel, registration, insurance, servicing, repairs and decline in value — and you cannot add any of them on top. Decline in value is claimable only under the logbook method. There the cost you depreciate is capped at the car limit: $69,674 for 2025-26 and $69,883 for 2026-27. The Commissioner's determination of a car's effective life is generally 8 years.

Cents Per Km vs Logbook Calculator

Compare the ATO cents per kilometre method (88c/km for 2025-26, capped at 5,000km) against the logbook method and see which car deduction is bigger.

Last verified: 29 July 2026

Income year you're claiming*

Use the rate for the year of the claim, not the year you lodge in.

Work-related kilometres this year*

Trips between workplaces or to carry out your duties. Not home to your regular workplace.

Total kilometres the car travelled*

Odometer at the end of the year minus the odometer at the start. Sets your work-use percentage.

I have a valid logbook

At least 12 continuous weeks, representative of your travel, and less than 5 years old. Without one the logbook method is off the table.

Fuel and electricity (annual)

Total for the year, before any work-use split.

Servicing, repairs and tyres (annual)

Registration and insurance (annual)

Car loan interest, lease payments and other

Interest only, not the loan principal. The purchase price itself is not a car expense.

Decline in value method*

Only the logbook method lets you claim decline in value. The cents per km rate already includes it.

Car cost (or opening adjustable value)

The purchase price in the first year you held the car; its opening adjustable value in any later year. Reduced to the car limit if it's above.

Effective life

years

The Commissioner's determination for a car is 8 years.

Days you held the car this year

days

365 if you owned it all year. Fewer if you bought or sold part way through.

Your marginal tax rate

2025-26 resident rates, excluding the 2% Medicare levy. Used only to estimate what the deduction is worth.

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

Cents Per Km vs Logbook Calculator

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