The maximum tax-free travel expense reimbursement in 2026 is €0.25 per kilometre. That was €0.23. The increase is retroactive to 1 January 2026 and applies for the entire year. This is laid down in the Policy decision on tax measures in response to the energy shock, published in the Official Gazette on 21 May 2026.
What are we going to discuss?
- How much can I reimburse tax-free per kilometre in 2026?
- From when does the €0.25 apply — and will it remain so after 2026?
- Do I, as an employer, have to increase the reimbursement, or is it optional?
- Does the €0.25 also apply to bicycles, walking, and public transport?
- How do I adjust the months already processed for 2026?
- Does the increase also apply to me as a self-employed person or entrepreneur?
- Is €0.25 per kilometre enough to cover my car costs?
How much can I reimburse tax-free per kilometre in 2026?
You may reimburse a maximum of €0.25 per business kilometre tax-free in 2026. This applies to business trips and commuting. The amount has increased by €0.02 compared to the €0.23 that applied until 2025 (Official Gazette 2026, 18302).
Are you reimbursing more than €0.25 per kilometre? Then the portion above that counts as salary. You can keep that excess tax-free by placing it within the free space of the work-related expenses scheme (the WKR — the budget within which you may provide tax-free reimbursements and benefits to staff).
From when does the €0.25 apply — and will it remain so after 2026?
The €0.25 is retroactive to 1 January 2026, thus for the entire year. The decision was published on 21 May 2026 and came into effect the following day (Official Gazette 2026, 18302).
The €0.25 does not disappear after 2026. The decision itself is temporary and expires on 1 January 2027, but the cabinet establishes the increase in the Tax Plan 2027. From 2027, the rate will therefore be in the law instead of in a temporary decision (Official Gazette 2026, 18302).
The increase is implemented through an approving policy decision — a decision by which the state secretary anticipates new legislation. This happened due to urgency: because of rising fuel prices, the cabinet did not want to wait for the regular legislative process (Official Gazette 2026, 18302).
Do I, as an employer, have to increase the reimbursement, or is it optional?
You may increase, you do not have to. The decision provides fiscal space but does not impose an obligation to pay employees €0.25 (Official Gazette 2026, 18302).
Whether your employee is entitled to the higher compensation depends on the agreements you have made. If it states in the collective agreement, employment contract, or employee handbook that the employee receives "the fiscally maximum tax-free amount", then the increase is automatically applied. If there is a fixed amount of €0.23, you do not have to increase that without further ado (Moore DRV).
So first check what is stated in your own documents before you make any adjustments. That determines whether an increase is voluntary or mandatory.
Does the €0.25 also apply to bicycles, walking, and public transport?
Yes. The law specifies one fixed amount per kilometre for all forms of transport. The €0.25 also applies if your employee travels by bicycle, motorbike, on foot, or by public transport (Official Gazette 2026, 18302).
With public transport, you have a choice: you reimburse €0.25 per kilometre, or you reimburse the actual costs of the ticket tax-free. What is most advantageous varies by situation (Official Gazette 2026, 18302).
How do I adjust the months already processed for 2026?
You do this with correction messages: adjustments to a payroll tax return that you have already submitted. The decision expressly allows you to correct the already elapsed wage periods of 2026 in this way to apply the higher reimbursement (Official Gazette 2026, 18302).
In practice, this means a back payment of €0.02 per kilometre for the months you have already processed. You do not need to rebuild your entire administration for this — it goes through the correction of the previous returns.
Does the increase also apply to me as a self-employed person or entrepreneur?
Yes. Entrepreneurs for income tax and income recipients (people with income from other work, for example, a freelance assignment alongside a job) may deduct their business travel expenses at €0.25 per kilometre instead of €0.23, with the same retroactive effect up to and including 1 January 2026 (EY).
For you, it does not work through a tax-free reimbursement in the payroll administration, but through a higher deduction in your income tax return. If you drive business kilometres with your private car, you can deduct them at €0.25 (Moore DRV).
The increase also affects a few other flat-rate amounts in income tax. The deduction for travel expenses for care, weekend expenses for the disabled, and the gift deduction for a volunteer who waives a travel expense reimbursement, will also go to €0.25 per kilometre (Official Gazette 2026, 18302).
Is €0.25 per kilometre enough to cover my car costs?
Usually not. The €0.25 is a fiscal maximum, not a calculation of what driving really costs. According to the ANWB, a car typically costs more per kilometre than the tax-free reimbursement provides, as depreciation, insurance, and maintenance also count alongside fuel (ANWB).
How large that gap is varies by car. The Association of Business Drivers (VZR) — an interest group for business motorists — estimates a realistic kilometre price of about €0.38 for a mid-range car in 2026 (Salary Yield). The increase to €0.25 thus alleviates some of the pain at the pump, but does not cover the full costs of car ownership.
As an employer, you may reimburse more than €0.25, but the amount above that is taxable or must fit within the free space of the work-related costs scheme (Salary Yield).
Sources
- State Secretary of Finance, Policy decision on fiscal measures in response to the energy shock, decision of 17 May 2026, no. 2026-8260 — State Gazette 2026, 18302: zoek.officielebekendmakingen.nl/stcrt-2026-18302.html
- EY, Decision on fiscal measures energy shock: ey.com
- Moore DRV, Tax-free travel expense reimbursement to €0.25 per kilometre: moore-drv.nl
- ANWB, Calculating kilometre reimbursement: anwb.nl
- Salary Yield, In 2026, a kilometre reimbursement of €0.38 is cost-covering (standard amounts Association of Business Drivers): rendement.nl
Author(s)
Mirko Kersten
Mirko advises entrepreneurs on their administration, taxation and business structure. He studied accountancy and law, and combines those two backgrounds in his work: the figures and the law behind them. As a result, he writes authoritatively on both tax and legal subjects.