FBT on a Vehicle Calculator

This calculator estimates the fringe benefit tax, or FBT, payable when an employer provides a vehicle that is available for an employee's private use. When a business lets a staff member use a work vehicle privately, including simply having it available at home, that benefit is taxed through FBT, paid by the employer. It is one of the most common fringe benefits and a frequent source of confusion, because the tax is based not on actual private running costs but on a set percentage of the vehicle's value, reflecting the value of having it available. Under the cost method, the taxable value each year is 20 percent of the vehicle's GST-inclusive cost price, and FBT is then charged on that value at the FBT rate. This tool estimates it. You enter the vehicle's GST-inclusive cost and the FBT rate you use, and the calculator returns the annual FBT payable, the annual taxable value of the benefit, the quarterly FBT, and the rate applied. The results update as you type. Use it to budget for the FBT cost of providing a vehicle, to compare the cost method against keeping a logbook, or to understand the tax of a company car. A few notes: the 20 percent cost method is the simpler of the two approaches, with the alternative being 36 percent of the vehicle's tax book value; FBT rates differ depending on whether you use the single rate or attribute benefits to individual employees, so the rate is an input here; and days the vehicle is genuinely unavailable for private use, or is a qualifying work-related vehicle such as a sign-written ute with private-use restrictions, can reduce or remove the liability. This is an estimate; confirm the details with Inland Revenue or your accountant.

Cost method: annual taxable value = 20% of the GST-inclusive cost. FBT = taxable value x FBT rate. The 49.25% single rate or attributed rates may apply. Work-related vehicle exemptions can reduce this.