Are these results exact?

They are estimates based on standard resident rates. Your actual tax depends on your full circumstances, offsets and any private health insurance position. The ATO’s own tools or a registered tax agent give a definitive answer.

Do the calculators work for non-residents?

No. Non-residents have different rates, no tax-free threshold and no Medicare levy. These calculators assume you are an Australian resident for tax purposes.

When do tax rates change?

Rates usually change on 1 July, the start of the Australian financial year. Check the ATO website each July for the current figures.

Car Expense Deduction Calculator: Formula, Example and What the Result Means

Updated 11 March 2026 · Tax and pay

Estimates a work car deduction using the cents per kilometre method. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Car Expense Deduction Calculator.

Why it matters

Australia taxes individuals on a progressive scale, so each extra dollar can be taxed at a different rate from the last. On top of income tax, most residents pay the 2% Medicare levy, and many carry HELP debts that are repaid through the tax system. Employers withhold tax from each pay under PAYG, and the annual tax return squares up the difference.

What you need to enter

The calculator asks for 3 inputs. The table shows each one with the example value used later in this guide.

Input	Example value
Work kilometres driven	4000
Cents per kilometre	88
Your marginal tax rate (%)	32

The formula

Deduction = work km (capped at 5,000) × the ATO rate per km (88 cents for 2024–25; check the current year).

Worked example

Entering the example values above gives these results:

Result	Value
Deduction	$3,520.00
Kilometres claimable (max 5,000)	4,000
Estimated tax saving	$1,126.40

The headline figure is $3,520.00 (deduction). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.

How the deduction changes with work kilometres driven

The table below keeps every other input at the example value and moves only “Work kilometres driven” up and down by 10% and 20%. It shows how sensitive the deduction is to that one figure.

Work kilometres driven	Deduction
3,200	$2,816.00
3,600	$3,168.00
4,000	$3,520.00
4,400	$3,872.00
4,800	$4,224.00

At 3,200 the result is $2,816.00; at 4,800 it is $4,224.00. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.

A practical tip

Trips between home and your usual workplace are private travel and cannot be claimed, even if you run errands on the way.

Keep going

Before relying on the number, read Car Expense Deduction: What to Check Before You Trust the Number. You might also find these guides useful:

Frequently asked questions

Are these results exact?: They are estimates based on standard resident rates. Your actual tax depends on your full circumstances, offsets and any private health insurance position. The ATO’s own tools or a registered tax agent give a definitive answer.
Do the calculators work for non-residents?: No. Non-residents have different rates, no tax-free threshold and no Medicare levy. These calculators assume you are an Australian resident for tax purposes.
When do tax rates change?: Rates usually change on 1 July, the start of the Australian financial year. Check the ATO website each July for the current figures.

Run your own numbers in the Car Expense Deduction Calculator.

Open the calculator

General information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.