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, and adds it 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 over the first €30,000 of the list price: 18% in 2026 and 20% in 2027; above that threshold the 22% applies. From 2028 electric cars fall under 22% in full.
A car of 16 years and older (17 in 2027, 20 from 2028) is a youngtimer: the addition is 35% of the market value. For an older car with a low market value that is often the cheapest company car there is.
Private use of at most 500 kilometres a year, proven with a trip log, avoids the addition. From 2027 the employer of a fossil-fuel company car also pays a separate levy of 12% of the list price; cars on the company before 2027 stay out of that levy up to and including 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: €5,400 plus €4,400 is €9,800 a year, added to the salary. At a marginal rate of 37.56% that costs about €3,680 in tax a year.
The figures
All 2026 figures: Netherlands tax rates 2026 · the 2027 figures: 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. Proof of at most 500 private kilometres a year, with a complete trip log, is the way to avoid it.
Is it cheaper to drive the car privately and charge kilometres?
Often, for a cheap car with many business kilometres: the business pays {{km_vergoeding}} per kilometre tax-free. The company car calculator compares both for your own figures.
Holdwise, Hoofddorp. Definition and explanation maintained with the Dutch and German glossaries; figures from the central rates source, year 2026. Updated 16 September 2026.
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