AA rates per km 2026 are commonly used by South African employees, employers and business owners when calculating the cost of using a private vehicle for work. The important distinction is that there is no single AA rate that applies to every vehicle. The Automobile Association of South Africa calculates vehicle-specific operating costs, while the South African Revenue Service (SARS) publishes prescribed rates for tax purposes. For the 2027 tax year, running from 1 March 2026 to 28 February 2027, the SARS simplified reimbursive rate is R4.95 per kilometre where the relevant requirements are met.
This distinction matters when submitting a travel claim, setting a company reimbursement policy or calculating a travel allowance. Using the wrong figure can result in an inaccurate claim or unexpected PAYE consequences.
AA Rates Per KM 2026 in South Africa: The Quick Answer
There is no universal AA rate per kilometre for 2026. The AA calculates a rate according to the vehicle and the costs associated with owning and operating it. Its current Vehicle Rates Calculator is designed to provide a cost-per-kilometre figure based on vehicle-specific information.
SARS works differently. For qualifying reimbursive business travel, the prescribed simplified rate is R4.95 per kilometre from 1 March 2026. SARS also publishes a detailed cost scale based on the value of the vehicle, fixed costs, fuel costs and maintenance costs.
| Rate | What it represents | 2026/27 position |
| AA vehicle rate | Estimated cost of owning and operating a specific vehicle | Vehicle-specific |
| SARS simplified reimbursive rate | Prescribed rate for qualifying business kilometres | R4.95 per km |
| SARS cost-scale method | Fixed, fuel and maintenance cost calculation | Depends on vehicle value and kilometres travelled |
The official SARS rates-per-kilometre information confirms that the rates applicable to the 2027 year of assessment took effect from 1 March 2026.
AA Rates Per KM 2026 vs the SARS Rate
The terms “AA rate” and “SARS rate” are sometimes used as though they mean the same thing. They do not.
How the AA rate works
The AA approach is intended to estimate what it costs to operate a particular vehicle. According to the AA, vehicle ownership costs extend beyond petrol or diesel and can include expenses such as tyres, servicing, maintenance, insurance and other costs associated with keeping a vehicle on the road.
The AA’s AA Access service provides access to its rates calculator, which considers vehicle-specific details when calculating a cost-per-kilometre rate. This makes the resulting figure more useful for vehicle-cost planning and travel reimbursement discussions than applying one arbitrary rate to every car.
A Toyota Corolla, Volkswagen Polo, Toyota Hilux, Ford Ranger and large luxury SUV will not necessarily have the same realistic running cost per kilometre. Their purchase prices, fuel consumption, tyres, insurance, maintenance and depreciation profiles can differ substantially.
How the SARS R4.95 rate works
SARS uses R4.95 per kilometre as the simplified prescribed rate for qualifying reimbursive travel during the 2027 tax year. This applies from 1 March 2026 to 28 February 2027.
The rate should not be interpreted as SARS saying that every vehicle costs exactly R4.95 per kilometre to operate. It is a tax-related prescribed amount that can be used in qualifying circumstances.
SARS states in its Guide for Employers in Respect of Allowances that where an employer reimburses business kilometres at no more than the prescribed rate, the payment may not be subject to employees’ tax when the applicable conditions are met.
Current SARS Rate Per Kilometre for 2026/27
The simplified SARS rate is R4.95 per kilometre from 1 March 2026. This is the rate many South Africans are looking for when searching for a general “travel rate per kilometre” for business reimbursement.
For example, a qualifying reimbursement calculated at R4.95 per kilometre would be:
- 500 business km: R2,475
- 1,000 business km: R4,950
- 1,500 business km: R7,425
- 2,000 business km: R9,900
- 5,000 business km: R24,750
These figures simply multiply the business kilometres by R4.95. They do not by themselves establish the final tax treatment of a payment. The nature of the reimbursement, any other vehicle compensation and the employee’s circumstances must also be considered.
SARS Vehicle Cost Table for the 2027 Tax Year
SARS also provides a detailed vehicle cost scale where actual vehicle expenses are not being claimed. The following figures apply to the 2027 year of assessment from 1 March 2026.
| Vehicle value including VAT | Fixed cost per year | Fuel cost | Maintenance cost |
| R0 to R115,000 | R38,344 | 132.9 c/km | 49.1 c/km |
| R115,001 to R230,000 | R68,487 | 148.4 c/km | 61.4 c/km |
| R230,001 to R345,000 | R98,689 | 161.2 c/km | 67.8 c/km |
| R345,001 to R460,000 | R125,393 | 173.4 c/km | 74.0 c/km |
| R460,001 to R575,000 | R152,097 | 185.5 c/km | 86.9 c/km |
| R575,001 to R690,000 | R180,078 | 212.8 c/km | 102.0 c/km |
| R690,001 to R805,000 | R208,106 | 216.5 c/km | 114.5 c/km |
| R805,001 to R920,000 | R237,679 | 220.1 c/km | 126.9 c/km |
| Above R920,000 | R237,679 | 220.1 c/km | 126.9 c/km |
The figures above come from the SARS 2026 Budget Tax Guide. They are SARS figures and should not be described as the AA’s vehicle rates.
How the SARS cost-scale rate is calculated
The SARS method combines three possible components:
- The applicable annual fixed cost divided by the total kilometres travelled during the tax year.
- The prescribed fuel cost per kilometre if the employee personally carried the full cost of fuel.
- The prescribed maintenance cost per kilometre if the employee personally carried the full maintenance cost.
If a vehicle was used for business for less than the full tax year, SARS requires the fixed-cost component to be reduced proportionately.
This calculation is different from simply multiplying business kilometres by R4.95 and is also different from obtaining a vehicle-specific AA rate.
How to Calculate AA Rates Per KM 2026 for Your Vehicle
The most reliable way to obtain an AA rate is to calculate it for the vehicle actually being used rather than relying on a figure copied from another vehicle or an old online article.
- Open the AA Vehicle Rates Calculator.
- Sign in or create the AA Access profile required to use the calculator.
- Provide the vehicle information requested by the AA system.
- Generate the relevant vehicle rate or Vehicle Rates Certificate.
- Check whether your employer’s travel policy uses the AA rate, the SARS prescribed rate or another agreed reimbursement method.
- Multiply the agreed rate by the qualifying business kilometres when preparing the travel claim.
An AA calculation is particularly useful where the aim is to establish the realistic cost of using a specific private vehicle for business. It should not automatically be treated as the SARS tax rate.
What Costs Affect AA Rates Per KM 2026?
A realistic vehicle cost per kilometre involves considerably more than the price of petrol or diesel.
Fuel consumption
Fuel remains one of the largest variable expenses for many South African motorists. A vehicle using 6 litres per 100 km will have a lower fuel cost per kilometre than one using 12 litres per 100 km when both pay the same pump price.
A simple fuel calculation is:
Fuel cost per kilometre = fuel price per litre × litres consumed per kilometre.
If a vehicle uses 8 litres per 100 km, it consumes 0.08 litres per kilometre. At a hypothetical fuel price of R22 per litre, the direct fuel cost would be R1.76 per kilometre.
That figure is only the fuel component. It does not include tyres, servicing, insurance, depreciation or other ownership expenses.
Maintenance and repairs
Vehicle servicing, replacement tyres, brake components, batteries, repairs and other maintenance expenses affect the cost of driving. Vehicles travelling long distances for sales visits, deliveries, construction work or site inspections may accumulate wear considerably faster than lightly used private vehicles.
Tyres
Tyre costs can be significant, particularly for SUVs, performance vehicles, bakkies and vehicles operating regularly on poor roads or gravel surfaces. Tyre replacement costs should therefore not be ignored when estimating a realistic business travel rate.
Insurance and licensing
Insurance and vehicle licensing are ownership costs even when the vehicle is not travelling. Their effect per kilometre also depends on how far the vehicle travels each year.
Depreciation and vehicle value
A vehicle normally loses value as it ages and accumulates mileage. Someone considering the real economic cost of using a private car for business should therefore look beyond immediate cash expenses such as fuel.
The AA has previously highlighted this broader approach to vehicle ownership costs in its guidance on understanding the cost of owning and running a vehicle.
AA Rates Per KM 2026 for Bakkies, SUVs and Passenger Cars
Questions about the AA rate for a bakkie, SUV or particular engine size cannot reliably be answered with one generic number.
AA rate for a bakkie
A Toyota Hilux, Ford Ranger, Isuzu D-Max or Volkswagen Amarok may have a substantially different cost structure from a small passenger car. Factors include purchase price, fuel consumption, tyres, maintenance requirements, drivetrain and annual kilometres.
A four-wheel-drive bakkie used on construction sites or gravel roads may also incur different operating expenses from the same model used mainly on urban roads.
AA rate for a small passenger car
Smaller petrol cars can have comparatively low fuel and tyre costs, but their complete rate still depends on vehicle value, insurance, servicing, depreciation and mileage.
It is therefore misleading to assume that every hatchback should use the same reimbursement rate.
AA rate for SUVs
SUV running costs can vary widely. A compact crossover and a large seven-seat four-wheel-drive SUV may have very different fuel, tyre, insurance and ownership costs.
Using the actual vehicle details through the AA calculator gives a more defensible estimate than selecting a generic SUV rate.
AA Rates Per KM 2026 and Business Travel Claims
Employees commonly incur business kilometres when travelling from their normal workplace to clients, suppliers, branches, meetings, inspections or temporary work locations.
For example, an employee based at an office in Midrand who travels from the office to a client meeting in Pretoria and returns may have business kilometres to record, subject to the applicable facts and employer policy.
Ordinary travel between home and the employee’s normal place of work is different. SARS states that home-to-work travel is regarded as private travel rather than deductible business travel.
Keeping a Logbook for AA Rates Per KM 2026 Claims
A proper travel logbook is important where business kilometres must be substantiated for SARS purposes.
SARS provides a 2026/27 travel eLogbook for the period from 1 March 2026 to 28 February 2027.
SARS advises taxpayers to record their vehicle’s odometer reading at the beginning of the tax year on 1 March and again at the end of February. Business travel records should include at least:
- The date of the business journey.
- The kilometres travelled.
- Where the journey started.
- The destination.
- The business reason for the trip.
Keeping these details consistently is more reliable than attempting to reconstruct an entire year’s business travel shortly before filing a tax return.
Travel Allowance vs Reimbursive Travel Payment
These two forms of compensation should not be confused.
Reimbursive travel payment
A reimbursive payment is linked to actual business kilometres travelled. For the 2027 tax year, the prescribed simplified rate is R4.95 per kilometre under the relevant SARS rules.
Where the employer reimburses an employee above the prescribed rate, the portion above the prescribed amount can become subject to employees’ tax. SARS provides the example of an employer paying R5.95 per kilometre when the prescribed rate is R4.95: the additional R1.00 per kilometre is subject to PAYE under the applicable rules.
Fixed travel allowance
A fixed travel allowance is an amount paid irrespective of the exact number of kilometres claimed each month. SARS states that 80% of a travel allowance is generally included in remuneration for PAYE purposes.
This can be reduced to 20% where the employer is satisfied that at least 80% of the vehicle’s use during the tax year will be for business purposes.
The SARS Guide for Employers in Respect of Employees’ Tax for 2027 provides the current employer guidance for the tax year.
How Much Should an Employer Pay Per Kilometre in South Africa?
The R4.95 SARS rate should not be interpreted as a rule requiring every employer in South Africa to reimburse employees at exactly R4.95 per kilometre.
An employer’s actual reimbursement arrangements may be determined by its travel policy, employment terms or other applicable arrangements. What matters for tax is how the payment is structured and whether it falls within the relevant SARS requirements.
A business may therefore choose to use:
- A vehicle-specific AA rate.
- The SARS prescribed reimbursive rate.
- A company-specific kilometre rate.
- Another properly documented vehicle reimbursement arrangement.
Employers should understand the PAYE treatment before assuming that a higher reimbursement can simply be paid tax-free.
AA Petrol Rates Per KM 2026 Are Not Just Fuel Rates
People searching for AA petrol rates per kilometre often want to know how much they should claim for using their car at work. Petrol expenditure alone does not represent the complete cost of using a private vehicle.
A driver who calculates only petrol may overlook substantial expenses such as:
- Tyres.
- Regular servicing.
- Repairs.
- Insurance.
- Vehicle licensing.
- Depreciation.
- Other ownership costs.
This is one reason an AA vehicle-specific calculation can produce a different figure from a simple fuel-cost calculation or the SARS R4.95 prescribed rate.
AA Rates Per KM 2026 Example: Calculating a Monthly Claim
Assume an employee records 1,500 qualifying business kilometres during a month and the employer reimburses those kilometres at the SARS prescribed rate of R4.95.
The calculation is:
1,500 km × R4.95 = R7,425.
If the employer instead has an agreed vehicle-specific rate of R5.60 per kilometre, the calculation would be:
1,500 km × R5.60 = R8,400.
The second calculation does not mean the whole R8,400 automatically receives the same tax treatment as reimbursement at the SARS prescribed rate. The employer must apply the relevant SARS rules to determine the PAYE treatment.
Common Mistakes When Using AA Rates Per KM 2026
- Calling R4.95 the universal “AA rate” when it is the SARS prescribed simplified rate.
- Assuming every vehicle has the same AA cost per kilometre.
- Using petrol cost alone as the complete cost of operating a vehicle.
- Claiming ordinary home-to-work commuting as business travel.
- Failing to maintain an adequate business travel logbook.
- Using an old tax-year rate without checking the dates to which it applies.
- Assuming a reimbursement above R4.95 per kilometre automatically receives the same PAYE treatment as the prescribed amount.
AA Rates Per KM 2026 FAQs
What are AA rates per km 2026 in South Africa?
AA rates per km 2026 do not refer to one universal figure for every South African vehicle. The AA calculates a vehicle-specific cost-per-kilometre rate. If you are looking for the SARS prescribed simplified reimbursive rate, it is R4.95 per kilometre from 1 March 2026 for qualifying business travel.
Are AA rates per km 2026 the same as the SARS R4.95 rate?
No. AA rates per km 2026 are designed to reflect vehicle-specific operating and ownership costs. The R4.95 per kilometre figure is a SARS prescribed rate used for qualifying reimbursive business travel during the 2027 tax year.
How do I calculate AA rates per km 2026 for my own car?
Use the AA’s Vehicle Rates Calculator and provide the requested information about the actual vehicle. The resulting rate is more relevant to your vehicle than assuming a generic rate based only on engine size or vehicle category.
Can an employer use AA rates per km 2026 for employee travel claims?
An employer can use an AA vehicle rate as part of its reimbursement approach or travel policy. However, the reimbursement method and tax treatment must still be considered separately under SARS rules. An AA rate should not automatically be treated as the SARS prescribed rate.
Do I need a logbook when using AA rates per km 2026?
A logbook is important where business kilometres must be substantiated for SARS purposes. SARS requires business travel to be supported by appropriate records when claiming travel-related deductions. Its 2026/27 eLogbook provides a practical format for recording business journeys.
Conclusion
AA rates per km 2026 are most useful when they are understood as vehicle-specific estimates rather than a single national reimbursement figure. The AA’s calculator can help motorists and businesses estimate what a particular vehicle costs to operate, while SARS sets separate prescribed rates and rules for tax purposes.
For the 2027 tax year from 1 March 2026 to 28 February 2027, the SARS simplified reimbursive rate is R4.95 per kilometre where the applicable conditions are met. SARS also provides a detailed vehicle cost scale for taxpayers using that calculation method.
The practical takeaway is to identify which figure you actually need. Use a vehicle-specific AA calculation when assessing the realistic cost of operating a car, use current SARS guidance when dealing with tax treatment, and maintain a proper logbook whenever business kilometres need to be substantiated. Keeping the AA rate and SARS rate separate makes travel claims easier to calculate, explain and administer correctly.
