Example result based on the prefilled values.
SARS Approved Deduction
R69 600,00
Taxable Allowance
R0.00
Additional Tax on Allowance
R0.00
Net Benefit of Allowance
R60 000,00
Business Use
60.00%
Continue your plan
Useful next calculations
When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
A realistic South Africa planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Annual Travel Allowance from Employer (R)
60000
Business Kilometres Driven
15000
Total Kilometres Driven
25000
Vehicle Value (incl. VAT) (R)
350000
After entering these figures, review sars approved deduction, taxable allowance and additional tax on allowance together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
SARS Approved Deduction
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Taxable Allowance
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.
Additional Tax on Allowance
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.
Net Benefit of Allowance
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Business Use
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
A travel allowance paid by an employer is a common component of South African remuneration packages, particularly for employees in sales, consulting, or any role requiring regular travel to client sites. Under SARS rules, the allowance is not automatically tax-free — only the portion that corresponds to proven business travel at the approved rate escapes income tax. For 2024/25, the approved rate is R4.64 per kilometre for the first 17,000 business kilometres and R2.79 per kilometre thereafter. The key requirement is a SARS-compliant travel logbook recording every business trip. Without this logbook, SARS automatically treats 80% of the gross allowance as taxable income, which can create a significant and avoidable tax liability for employees who do substantial business mileage.
This calculator uses the logbook method: it multiplies your business kilometres by the 2024/25 approved rates to determine the SARS-approved deduction, then subtracts that from your gross allowance to find the taxable portion. The taxable allowance is added to your other income, and the incremental income tax is computed using the 2024/25 brackets. The net benefit of the allowance is what remains after SARS has taken its share. Employees considering whether to negotiate a travel allowance versus a company car should compare this net benefit against the fringe benefit tax that applies to a company vehicle. SARS also allows an actual-cost method for those with detailed vehicle expense records, which may produce a more favourable result if running costs are high. Consult a registered tax practitioner before choosing your method.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
- Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.
Frequently asked
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