How it works
A company car that is also driven privately is a benefit in kind. The tax authority values that benefit as a percentage of the list price of the car, including VAT and registration tax. This amount is added to the salary. Income tax is paid on that amount every month through the payroll.
The standard percentage is 22% of the list price for cars registered from 2017. Electric cars have a lower percentage on the first €30,000 of the list price. This is 18% in 2026 and 20% in 2027. Above that threshold, the 22% applies. From 2028, the full 22% applies to electric cars.
In 2026, a car older than 16 years is a youngtimer. The Tax Plan 2027 proposes 17 years in 2027 and 20 years from 2028. The current law uses 25 years. This is still a proposal. For a youngtimer, the addition is 35% of the market value. An older car with a low market value is then often the cheapest company car.
You avoid the addition if you drive at most 500 private kilometres a year and prove this with a trip log. From 2027, the employer also pays a separate levy of 12% of the list price for a fossil-fuel company car. Cars that the company had before 2027 are exempt until 17 September 2030. The proposal extends this to 31 December 2030.
Example
A DGA drives an electric car with a list price of €50,000 in 2026. The addition is 18% of €30,000 plus 22% of €20,000. That is €5,400 plus €4,400, which makes €9,800 a year. This amount is added to the salary. At a marginal rate of 37.56%, the DGA pays about €3,680 in tax a year for this.
The figures
Every rate for 2026 is listed in Netherlands tax rates 2026, and the figures for 2027 are in Netherlands tax rates 2027.
Questions people ask
Is the addition due when the car stays at the office?
The addition applies when the car can be used privately. To avoid it, you need proof of at most 500 private kilometres a year, with a complete trip log.
Is it cheaper to drive the car privately and charge kilometres?
It often is, for an inexpensive car with many business kilometres. In 2026, the business can then pay you €0.25 per kilometre tax-free. You can compare both options for your own figures with the company car calculator.
Holdwise, Hoofddorp. We keep this definition in line with our Dutch and German glossaries, and the figures are those for the tax year 2026. Updated 30 September 2026.
Want our team to have a look?
We help entrepreneurs and international companies with their company in the Netherlands and Europe. Tell us about your situation or your plans. Our team looks at it and replies with the next step.