Tax & Rates

Dutch mileage allowance €0.25 per kilometre: backdated to 1 January 2026

Updated: 15 september 2026 Holdwise editorial team Mileage allowance Commuting Tax Plan 2027

Every kilometre an employee drives for work or to the office can be paid tax-free up to a fixed amount per kilometre. That amount goes up to €0.25, and the cabinet makes the rise apply to the whole of 2026.

Short answer

The tax-free mileage allowance (onbelaste kilometervergoeding) is the amount an employer may pay per business or commuting kilometre free of tax. It was €0.23 in 2024 and 2025. The cabinet raises it to €0.25, and applies the rise backdated to 1 January 2026. A freelancer who drives a private car deducts the same amount per business kilometre. At 15,000 kilometres a year the rise is worth €300 tax-free. Holdwise explains what an employer corrects in 2026, how the allowance combines with public transport and the company car, and what it means for a director-shareholder.

Status: Proposed on Budget Day. This measure is part of the 2027 Tax Plan the cabinet submitted on 15 September 2026. The lower house votes on 12 November 2026, the senate around 16 December 2026. Every measure in one table: Budget Day 2026 and the Dutch 2027 Tax Plan.

The figures

The allowance was €0.19 for many years, rose to €0.21 in 2023 and to €0.23 in 2024. The 2027 Tax Plan sets €0.25 with retroactive effect to 1 January 2026. Above the amount the allowance is salary, unless the employer places it in the free allowance of the work costs scheme. The allowance applies to every means of transport: car, bicycle, on foot. For public transport the employer may instead 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 pay the difference of €0.02 per kilometre for the whole year as a tax-free correction, once the law is passed. That is a choice, and it depends on the employment contract or the collective agreement whether the employee can claim it. Employers who paid more than €0.23 and placed the excess in the free allowance get part of that allowance back, which helps at the end of the year. Fixed monthly allowances for commuting follow the same rule: 214 working days times the distance times €0.25, for anyone who comes to the office at least 128 days a year.

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 the addition for a company car is taken into account, that is often the cheaper route for a car with a high list price. The comparison is in the youngtimer rules for 2027 for older cars, and the overall picture of employer benefits in employee benefits under the Dutch work costs scheme.

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This article is part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

What is the Dutch tax-free mileage allowance in 2026 and 2027? +

€0.25 per kilometre, backdated to 1 January 2026 by the 2027 Tax Plan. Until the law passes, the amount in force is €0.23.

Can an employer pay the difference for 2026 afterwards? +

Yes, once the law is passed. The rise is retroactive, so €0.02 per kilometre for the whole of 2026 can be paid as a tax-free correction. Whether the employee is entitled to it depends on the contract or collective agreement.

Does the allowance apply to commuting? +

Yes. Home to work counts as business travel for the allowance. For public transport the employer may reimburse the actual cost instead.