Car Fringe Benefits Tax (FBT) Calculator
Estimate the taxable value of a car fringe benefit provided by an employer using the statutory formula method.
Your results
Calculation breakdown
- Taxable value
- Taxable value = car base value × statutory percentage
- FBT payable
- FBT = taxable value × gross-up rate × FBT rate
Worked example
A $40,000 base value car at a 20% statutory rate gives an $8,000 taxable value, which grosses up to about $16,642 and attracts roughly $7,822 in FBT at 47%.
Assumptions
- Uses the statutory formula method; the operating cost method may give a different result.
- Confirm the current statutory percentage and gross-up rate with the ATO.
How this calculator works
Under the statutory formula method, the taxable value of a car fringe benefit is calculated from the car's base value and a flat statutory percentage, then grossed up for FBT purposes. Enter the car's base value and the FBT rate to estimate the taxable value and the FBT payable by the employer.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 01/07/2026.
Frequently asked questions
What is the statutory percentage?
The ATO currently applies a flat 20% statutory rate for most cars regardless of kilometres travelled; confirm the current rate on the ATO website as it can change.
Who pays car FBT?
The employer is generally liable for FBT, though many arrangements pass the cost on to the employee via a novated lease post-tax contribution to reduce or eliminate it.
Does the employee's private use affect the calculation?
Under the statutory formula method private use does not change the calculation, unlike the operating cost method which considers actual business use percentage.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.
Actual entitlements can depend on your award, enterprise agreement, contract, employment status and individual circumstances.