Calculate travel allowance: formula and worked examples for employers
Want to calculate a travel allowance for employees? For journeys using private transport use a fixed formula based on the commuting distance, the number of working days and the tax-free kilometre rate. For public transport the approach is different: you reimburse the actual public transport costs.
On this page you will read how to calculate a fixed travel allowance, which formula to use and how to handle part-time employees, hybrid working and public transport reimbursements.
Mark Sloothaak, Mobiliteitsadviseur
NS Zakelijk
For a fixed (monthly) travel allowance for private transport (including walking) you may, subject to conditions, use the formula: one-way distance × 2 × 214 working days × € 0,25. Divide the result by 12 to calculate the fixed monthly amount.
For a flexible travel allowance you calculate the reimbursement based on the actual number of travel days.
For public transport there is no kilometre allowance. You may reimburse the actual travel costs tax-free.
You can also reimburse the journey to and from the station, for example by bicycle, on foot or by car to a Park and Ride (P+R) location.
With the NS-Business Card and NS Go you manage travel costs easily and keep control of travel behaviour and mobility costs.
What do you need to calculate a fixed travel allowance?
Before you calculate a fixed travel allowance, first decide whether you work with a reimbursement based on actual travel days or with a fixed monthly amount.
Reimbursement based on actual travel days
You reimburse only the days on which an employee actually travels. This method fits hybrid working well, but requires good registration of travel days. With the mobility platform NS Go you register all your employees’ travel automatically and process reimbursements easily based on actual travel behaviour.
Fixed travel allowance
With a fixed travel allowance you agree a fixed monthly amount based on the commuting distance and the expected number of travel days. If an employee travels at least 128 days a year to the same fixed workplace, you may calculate the fixed monthly travel allowance based on 214 working days a year. Apply this pro rata for part-time employees.
Which information do you need?
To calculate a fixed travel expense reimbursement you need three pieces of information:
The commuting distance The one-way distance from the home address to work, measured via the most common route.
The number of working days a year For a full-time contract you normally use 214 working days a year. If your employee works part-time, adjust the number of working days pro rata.
The tax‑free rate For journeys using private transport you may reimburse up to € 0,25 per kilometre tax-free.
Always use the one-way distance. In the formula you later multiply this by two for the outbound and return journey.
For a fixed travel allowance for journeys using private transport use the following formula:
one-way distance × 2 × number of working days × € 0,25 = annual allowance
Use this formula to calculate the annual travel allowance. Divide the annual allowance by 12 to determine the fixed monthly amount.
If an employee travels at least 128 days a year to the same fixed workplace, you may base the number of working days on 214 working days a year. Apply this pro rata for part-time employees.
If an employee travels less often to a fixed workplace, a reimbursement based on the actual number of travel days is usually more appropriate.
Every organisation is different. Our mobility advisers at NS Zakelijk will be happy to work with you to design a travel allowance scheme that suits your organisation. That way you can be confident you are choosing a solution that fits your employees, your mobility policy and the applicable tax rules.
Worked examples travel allowance 2026
The examples below use rounded numbers of working days. The actual reimbursement may therefore differ from the amounts in the examples.
Worked example: private transport, such as car or bicycle
An employee lives 20 kilometres from work and commutes five days a week.
Item | Value |
One-way distance | 20 kilometres |
Working days per year | 214 |
Rate | €0.25 / kilometre |
Annual reimbursement | 20 × 2 × 214 × €0.25 = €2,140 |
Monthly reimbursement | €2,140 ÷ 12 = €178.33 |
Travel allowance for part-time or hybrid working
If an employee works part-time or hybrid, adjust the number of working days pro rata.
Example: 3/5 × 214 = 128 working days
The formula stays the same; only the number of days changes.
Situation | Working days | Example (20 kilometres) |
Full-time (5 days) | 214 | €2,140 /year → €178.33 /month |
4 days per week | 171 | €1,712 /year → €142.67 /month |
3 days per week | 128 | €1,284 /year → €107.00 /month |
If an employee does not meet the 128-day rule, a flexible travel allowance is often a suitable alternative, where the amount varies based on the days actually travelled.
Worked example for public-transport commuters
For employees who travel by public transport the calculation works differently. You reimburse the actual public transport costs, such as single tickets or a train or public transport season ticket. You may reimburse these tax-free, even if the actual costs exceed € 0,25 per kilometre.
Example: as an employer you may provide or reimburse a Traject Vrij subscription from NS Zakelijk costing € 220 per month tax-free, as long as the subscription is used for business travel.
Pre- and post-station kilometres can also be reimbursed tax-free
Do employees travel by public transport? You can also reimburse the kilometres to and from the station separately. Think of bicycle or walking kilometres or the car route to a Park and Ride (P+R) location. These pre- and post-station kilometres you reimburse tax-free at a maximum of € 0,25 per kilometre, separate from the public transport costs.
With public transport you do not need to calculate the commuting travel allowance per kilometre. You reimburse the actual public transport costs and can process pre- and post-station kilometres separately.
With the NS-Business Card public transport journeys appear automatically on one clear monthly invoice. This means you do not have to process individual expense claims or receipts and you always have insight into the travel costs incurred.
That makes the administration simpler and offers two benefits for the payroll department:
You reimburse the actual public transport costs tax-free, even when they exceed € 0,25 per kilometre.
You always have digital documentation available for the Belastingdienst.
Have you calculated the travel allowance? Process it in your payroll administration next. Below are the key tax rules you need to bear in mind.
Tax-free reimbursement
You may reimburse up to € 0,25 per kilometre tax-free for journeys using private transport, such as the car, bicycle or walking. The same applies to journeys to and from a station or stop, for example by shared bike. For public transport you can choose either the maximum € 0,25 per kilometre or the actual public transport costs. If you choose the actual costs, you may reimburse these fully tax-free, even when they exceed € 0,25 per kilometre.
Additional public transport costs, such as an OV-fiets, can also be reimbursed tax-free under conditions if they relate to commuting or a business journey.
Werkkostenregeling (WKR)
Do you reimburse more than the targeted exemption allows? The excess is taxable pay unless you designate it as eindheffingsloon within the free space of the werkkostenregeling (WKR). If you exceed the free space, you as the employer pay an 80% final levy on the excess.
Want to know more about the Werkkostenregeling (WKR)? Read the current rules and conditions on
With NS Go you automate the management of travel allowances. Journey details are registered automatically and allowances are processed via your HR system. That way you keep control of costs and save time.
