The new amount already applies through a policy decision, and the 2027 Tax Plan puts it into law. Budget Day 2026 and the Dutch 2027 Tax Plan lists every measure in one table.
The figures
The allowance was €0.19 for many years, rose to €0.21 in 2023 and to €0.23 in 2024, and is now €0.25 with retroactive effect to 1 January 2026, under a decree of May 2026 that the 2027 Tax Plan proposes to put into law. Any amount above this counts as salary, or the employer can place it in the free allowance of the work costs scheme (werkkostenregeling), the tax-free budget for staff benefits. The allowance applies to every means of transport, including car, bicycle and walking, and for public transport the employer may reimburse the actual ticket price tax-free.
| Kilometres a year | At €0.23 | At €0.25 | Extra tax-free |
|---|---|---|---|
| 5,000 | €1,150 | €1,250 | €100 |
| 15,000 | €3,450 | €3,750 | €300 |
| 30,000 | €6,900 | €7,500 | €600 |
What an employer corrects
Because the rise is backdated, an employer who paid €0.23 in 2026 may now pay the difference of €0.02 per kilometre for the whole year as a tax-free correction. The employer can choose to do this, and whether the employee can claim it depends on the employment contract or the collective agreement. Employers who paid more than €0.23 and placed the extra amount in the free allowance get part of that allowance back, so they have more of it left at the end of the year. The same rule applies to fixed monthly allowances for commuting, calculated as 214 working days times the distance times €0.25, for anyone who comes to the office at least 128 days a year.
The rates are the same for everyone, but what you end up paying depends on how your company is set up. You can have your structure checked against the 2027 figures in a signed structure memo.
Freelancers and director-shareholders
A freelancer with a private car deducts €0.25 per business kilometre from profit, in place of the real costs. A director-shareholder who drives a private car for the company receives the same €0.25 tax-free from the company. Once you count the addition for a company car, this is often cheaper for a car with a high list price. For older cars, see the comparison in the youngtimer rules for 2027. For all employer benefits, see employee benefits under the Dutch work costs scheme.