Skip to content

Your privacy choices

Essential storage keeps the site working. With your permission, Google Analytics measures public page visits and Meta measures visits for advertising. These providers receive page categories and connection information such as your IP address. Google also receives a random browser identifier. We don’t send form contents, financial inputs or account pages. Cookie details

Company Car Fringe Benefit Tax Calculator

A company car is taxed as a fringe benefit of 3.5% of its determined value per month (3.25% if it came with a maintenance plan). Your employer adds 80% of that to your PAYE income, or 20% if at least 80% of your driving is for business (SARS).

Uses SARS 2026/2027 rates, checked 29 July 2026.

Company Car Tax Calculator

What your employer paid, including VAT and extras, excluding finance charges

Lowers the rate from 3.5% to 3.25%. Only if the plan started when the employer acquired the car and covers at least 3 years or 60,000 km (SARS IN72)

For the use of the car. Leave out anything you pay for fuel, maintenance, licence or insurance

Tick only if your employer is satisfied that at least 80% of your driving is for business (usually from a logbook). Otherwise 80% goes into your PAYE income

Whole months, 1 to 12. A part month is charged by the day, so round to the nearest month

Before tax, without the car. Used to find your tax bracket

Worked out on this device. Nothing you type is sent to us unless you email the results.

Example: a car with a determined value of R500,000.00 and no maintenance plan has a monthly taxable value of R17,500.00, of which R14,000.00 is added to your PAYE income.

How it works: under paragraph 7 of the Seventh Schedule to the Income Tax Act the value of private use is a fixed percentage of the car's determined value for each month you have it, less anything you pay your employer for the use. For PAYE your employer includes 80% of that amount, or 20% when it is satisfied that at least 80% of the use is for business. The rest is settled on assessment, where a business-kilometre logbook can reduce the value further.

Operating leases: if your employer leases the car under an arm's-length operating lease, the value is the lease cost plus fuel, not a percentage of the car's value. This calculator does not work that out.

Estimate only. It uses the 2026/27 income tax tables and the age rebate, and ignores medical credits, retirement deductions and other fringe benefits. Your employer's payroll may differ slightly.

Sources: SARS Interpretation Note 72: Right of use of a motor vehicle (PDF); PAYE-GEN-01-G21: Guide for Employers in respect of Employees' Tax, 2027 (PDF).

Get a travel allowance instead of a company car? Use the car allowance calculator or the travel allowance calculator.

Company Car Tax FAQ

Common questions about the company car fringe benefit in South Africa

More calculators

Retirement Annuity Tax Benefit

Calculate your maximum RA deduction and tax saving from retirement contributions.

Try Calculator

Salary vs Dividend

Compare the after-tax outcome of taking salary versus dividends from your company.

Try Calculator

Two-Pot Retirement Calculator

Calculate the tax impact of a two-pot retirement fund withdrawal and see your net payout after PAYE.

Try Calculator
View All Calculators

Explore Related Resources

Deepen your understanding with glossary definitions and free tools

Free Tools

Tax Calendar & Deadlines

EMP201, EMP501, and filing season dates

Payslip Generator

Generate payslips with PAYE, UIF & SDL

Monthly Financial Checklist

Stay on top of payroll every month

View all tools

Important Disclaimer

Accounter does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.