Travel allowance 2026: everything employers need to know
In 2026 you may reimburse employees up to €0.25 per kilometre tax-free for commuting and business travel. Public transport is an exception: you may reimburse the actual public‑transport costs fully tax‑free.
This article explains which rules apply to travel allowances, when a reimbursement is mandatory, which reimbursements are tax‑free, and how you as an employer can smartly handle commuting, business travel and hybrid working. You’ll also discover how the NS‑Business Card and NS Go help manage travel costs easily.
Mark Sloothaak, Mobiliteitsadviseur
NS Zakelijk
For journeys using private transport, such as on foot, by car or by bicycle, a maximum tax-free mileage allowance of €0.25 per kilometre applies in 2026.
For public transport that kilometre limit does not apply: you may reimburse the actual public‑transport costs fully tax‑free.
A travel allowance is not legally required, unless agreed in a collective labour agreement (cao) or employment contract.
Additional rules apply for fixed travel allowances and home‑working allowances when working hybrid.
With the NS‑Business Card and NS Go you can manage travel costs easily and keep control of travel behaviour and mobility costs.
What is a travel allowance?
A travel allowance is a contribution from the employer towards the costs of commuting and business travel. You can choose a per‑kilometre allowance, reimbursement of actual public‑transport costs, a mobility budget, or a corporate mobility card.
How much travel allowance may you give tax‑free?
The tax‑free limit: €0.25 per kilometre
You may reimburse up to €0.25 per kilometre tax-free in 2026 for journeys on foot, by bicycle, car, or motorcycle. If you reimburse more, the excess is taxable wages, unless you make use of the available allowance under the Work-Related Costs Scheme (werkkostenregeling, WKR).
Public transport is an exception. You may reimburse the actual public‑transport costs fully tax‑free, even if these exceed €0.25 per kilometre.
Want to know more? See the rules on the maximum tax‑free kilometre allowance on
Read our article on calculating travel allowances. There you’ll find the formula, worked examples and an explanation of fixed and flexible travel allowances.
For travel by public transport, such as train, bus, tram and metro, there is an exception to the per-kilometre allowance. Instead of the maximum €0.25 per kilometre, you may reimburse the actual public transport costs entirely tax-free.
This is an important difference compared with private vehicle use. For car travel, the maximum tax-free reimbursement is €0.25 per kilometre. If the actual costs are higher — for example due to fuel, parking or lease costs — the excess is, in principle, taxable.
A rail season ticket or a first-class train journey can also be offered or reimbursed tax-free under certain conditions. This is possible if the season ticket is also used for commuting or business travel.
Another advantage: you do not need to record for each individual trip whether it was business or private. As long as you, as the employer, can demonstrate that the season ticket is also used for business purposes, you can offer or reimburse it tax-free.
Thus, travelling by public transport is not only fiscally attractive but also simpler administratively.
First- and last-mile kilometres
Do you reimburse your employees' public transport travel expenses? If so, you cannot also provide a tax-free mileage allowance for the same journey. However, you can reimburse certain costs tax-free for the trip to and from the station. In this way you also support employees with part of their door-to-door journey.
This travel to and from the station consists of the distance an employee covers to get to the station or to reach the final destination from the station. This can be, for example, on foot, by bicycle, or by car. For these kilometres you may reimburse up to €0.25 per kilometre tax-free. Parking costs at a P+R location can also be reimbursed tax-free under certain conditions if they are related to commuting or a business trip.
How do you arrange a travel allowance for hybrid working?
Hybrid working also changes the way you reimburse travel costs. Do you opt for a fixed or a flexible allowance? And how do you keep the administration clear? Below you can read about the main options.
If you provide a fixed monthly travel allowance, you may calculate it based on 214 working days per year, provided an employee travels to the same fixed workplace for at least 128 days per year. For part-time employees, apply this pro rata.
If an employee travels less often, a flexible allowance is often more appropriate.
A flexible travel allowance matches actual travel behaviour. It’s especially useful when employees alternate between working from home and the office.
With
Do you use different reimbursements per mode of transport, for example for bike, car or public transport? With NS Go you can register and process these reimbursements automatically. That reduces administrative work, lowers the chance of errors and makes it easy to handle reimbursements.
Do you use both a home‑working allowance and a travel allowance? Specific tax rules apply.
Main rule: per working day give either a tax‑free home‑working allowance or a tax‑free travel allowance for commuting. You may not combine these allowances on the same day.
Exception: if an employee makes a business trip on a home‑working day, you may — in addition to the home‑working allowance — give a tax‑free reimbursement of €0.25 per business kilometre.
If an employee that day travels to the regular workplace using a train subscription reimbursed by you or a company bicycle, you may not give a tax‑free home‑working allowance for that day.
No — as an employer you are not required to provide a travel allowance. It is only mandatory if arrangements have been made about it in a collective labour agreement (cao), employment contract or staff handbook.
Tip: Always document agreements about travel allowances clearly. That way employees know what they are entitled to and you avoid uncertainty about reimbursements for commuting and business travel.
There is no statutory minimum distance for a travel allowance. As an employer you decide from which distance employees receive a reimbursement.
Want to encourage sustainable travel? You can choose not to use a distance threshold. You can also set higher kilometre allowances for bicycle travel and lower allowances for car kilometres. This makes sustainable travel choices more attractive for employees.
Please note that a mileage allowance above €0.25 per kilometre is taxable. For example, do you reimburse €0.40 per bicycle kilometre? Then at most €0.25 per kilometre is tax-free. Any amount above that is treated as taxable wages, unless you designate it—under certain conditions—within the tax-free allowance (vrije ruimte) of the Work-related Costs Scheme (WKR). If there is still free space available, you can allocate the excess to it. If the free space is fully used, the employer must pay an 80% final levy on the excess.
Hybrid working makes managing travel costs more complex. With the NS-Business Card and NS Go, journeys are recorded automatically, allowances are processed, and everything can be linked to your HR and payroll system. This helps you keep control of travel behaviour, mobility costs and administration.
