Mileage allowance 2026: amount, rules and calculation
In 2026, employers can reimburse up to €0.25 per kilometre tax-free. This applies to business travel and commuting with your own means of transport, such as a car, bicycle, motorcycle or scooter. In 2025, the maximum was €0.23 per kilometre. You are not required to automatically increase the reimbursement to €0.25. It is the maximum tax-free amount: how much you actually reimburse depends on the agreements in your collective labour agreement, employment terms and mobility policy. On this page, we explain what the €0.25 mileage allowance means for your organisation. You can read how to calculate the reimbursement, what choices you have and what to keep in mind as an employer.
Mark Sloothaak, Mobiliteitsadviseur
NS Zakelijk
The maximum tax-free amount for private transport has increased from € 0,23 to € 0,25 per kilometre, with retroactive effect from 1 January 2026.
You do not have to increase your allowance. Please check your collective labour agreement and employment conditions.
For public transport, you can reimburse the actual travel costs tax-free.
You can also reimburse the kilometres to and from a train or bus station at € 0,25 per kilometre.
If you reimburse more than € 0,25 per kilometre, the additional amount is, in principle, taxable salary.
What is the mileage allowance?
A mileage allowance is a fixed amount per kilometre that you, as an employer, can reimburse to employees who travel using their own transport. For example:
travel between home and work
kilometres to and from a train or bus station
business trips to customers, suppliers or other work locations
travel by private car, bicycle, motorbike or scooter
If you stay within the tax-free maximum, you can pay this allowance tax-free. In 2026, this is up to € 0,25 per kilometre.
How much is the mileage allowance in 2026?
The maximum tax-free amount has increased from € 0,23 to € 0,25 per kilometre in 2026. The increase applies retroactively from 1 January 2026.
Are you still using € 0,23? Then you can choose to increase the allowance, although this is not mandatory. If you decide to increase it, you can also reimburse the additional € 0,02 per kilometre tax-free and retroactively for trips made in 2026.
Want to know more about the different ways you can reimburse travel costs?
No. The tax-free mileage allowance of up to € 0,25 per kilometre applies to your own transport, such as a private car, bicycle, motorbike or scooter. You do not have to reimburse every mode of transport at the same rate. Would you like to encourage cycling? You could, for example, offer a higher allowance for bicycles than for cars.
Different rules apply to public transport. You can reimburse the actual travel costs tax-free. Employees can claim their public transport costs, or you can choose an
The € 0,25 mileage allowance does not apply to an employer-provided leased car or bicycle. You cannot pay a tax-free mileage allowance for kilometres an employee travels in one of these vehicles. If the employee uses their own transport on other days, you can pay a tax-free allowance of up to € 0,25 per kilometre for those kilometres.
You can. The part above € 0,25 is, in principle, taxable salary. Under certain conditions, you can designate this additional amount as final levy pay under the work-related costs scheme (WKR). It may then reduce your available discretionary budget. Good to know: the tax-free mileage allowance up to € 0,25 does not reduce that discretionary budget.
Not sure how to process this? Check the current rules from the Belastingdienst or speak to your payroll administration team.
Multiply the number of business kilometres by the mileage allowance:
Number of kilometres × allowance per kilometre
For example, an employee lives 15 kilometres from the office and travels there and back in one day:
30 kilometres × € 0,25 = € 7,50 per travel day
Does this employee come to the office four days a week? Then the allowance is € 30 per week.
If you offer a fixed travel expense allowance, an employee receives the same amount every month.
Does the number of travel days vary, for example because of hybrid working? A flexible allowance based on the actual kilometres travelled may be more suitable.
Train or car: which is cheaper? We’ve done the maths for you.
Are you self-employed and do you use your private car, bicycle, motorcycle or another private means of transport for your business? Then in 2026, you can deduct € 0,25 per business kilometre from your profits. Keep a clear record of your trips. Note the date, the departure and arrival addresses, the number of kilometres and the business purpose of each trip. This helps you show which kilometres you travelled for your business.
Do you want to give employees more freedom in how they travel? Then you can consider a mobility budget. Employees can use this budget for travel by public transport, car, bicycle or a combination. Make sure you have clear agreements, so the budget supports sustainable and responsible travel behaviour.
Frequently asked questions about mileage allowance
Is € 0,25 per kilometre mandatory?
No. It is the maximum amount you can reimburse tax-free in 2026, not a mandatory allowance. Check your collective labour agreement and employment conditions.
Can I still reimburse € 0,23 per kilometre?
Can I still reimburse € 0,23 per kilometre?
How do I increase the mileage allowance from €0.23 to €0.25?
Are you currently reimbursing €0.23 per kilometre and want to increase this to €0.25? First check what has been agreed with your employees. Then decide when the new rate will take effect and whether you want to adjust earlier journeys made in 2026.
Check your agreements Review what is stated in your collective labour agreement, employment terms or travel expense policy. Is the reimbursement linked to the maximum tax-free rate, or have you agreed a fixed amount?
Decide when the increase will take effect In 2026, you may reimburse up to €0.25 per kilometre tax-free. For tax purposes, the increase can be applied retroactively from 1 January 2026.
Decide what to do with earlier journeys If you reimbursed €0.23 per kilometre from 1 January onwards, you can still reimburse the additional €0.02 per kilometre tax-free. This does not necessarily have to be corrected in each previous salary payment; it can also be paid with a subsequent payroll run.
Update your administration Update the rate in your payroll administration, expense system and any other processes where the mileage allowance is recorded.
Inform your employees Let employees know what the new mileage allowance is, from which date it applies and whether kilometres travelled earlier in 2026 will also be adjusted.
Good to know: €0.25 is the maximum amount you can reimburse tax-free per kilometre in 2026. As an employer, you are not automatically required to increase the reimbursement to €0.25.
Can I fully reimburse public transport costs?
Yes. You can also reimburse the actual public transport costs tax-free. You are not bound by the maximum amount per kilometre.
Can you also offer an allowance for journeys to and from the bus or train station?
Yes. If an employee uses their own transport to or from a bus or train station, you can pay a tax-free allowance of up to € 0,25 per kilometre for these kilometres. You can also reimburse the public transport costs tax-free.