As of 22 May 2026, it is official: the Dutch tax-free mileage reimbursement rises structurally from €0.23 to €0.25 per kilometre, with retroactive effect from 1 January 2026. Here is what employers need to know — and act on.
What is changing?
Employers in the Netherlands may now reimburse employees up to €0.25 per kilometre on a tax-free basis. The increase applies to all modes of transport — car, public transport, bicycle, or on foot — and covers both business travel and commuting. This is a maximum, not an obligation; employers decide whether to adopt the new rate.
The measure forms part of the Dutch government’s response to rising fuel costs resulting from the situation in the Middle East. It was published in the Staatscourant on 21 May 2026. Formal legislation will follow through the Belastingplan 2027 (Tax Plan 2027).
📋 Key fact: The State Secretary of Finance has explicitly approved that the difference of €0.02 per kilometre over months already processed in 2026 may be paid out tax-free through a correction notice in your payroll tax return.
Retroactive effect — what does this mean for your payroll?
The increase is retroactive to 1 January 2026. You may pay out the €0.02 difference per kilometre for months already processed via a correction to your payroll tax return. Your situation determines which action is required:
Scenario 1 - You already reimburse at €0.25 per km — no action needed.Scenario 2 – You still reimburse at €0.23 per km — you may pay the €0.02 difference retroactively via a payroll correction.
Scenario 3 – You reimbursed more than €0.23 and treated the excess as taxed salary — you may correct earlier returns and reclaim withheld payroll tax.
Also relevant: sole traders and freelancers
The benefit is not limited to employees. For self-employed individuals (IB-ondernemers) and income-from-other-activities earners (resultaatgenieters), the deductible mileage rate also rises structurally to €0.25, again with retroactive effect from 1 January 2026. If you work with self-employed professionals, or if you operate as a sole trader yourself, make sure this is reflected in your tax advice.
Your action plan — four steps to take now
- Check which reimbursement rate is currently applied in your payroll administration.
- Decide whether you wish to adopt the new rate and whether any backdated payment to employees applies.
- Review whether your employment contracts or internal travel policies require updating.
- Coordinate with your payroll administrator to ensure the correct processing — Practical will include this in your next payroll run.
Questions or need assistance?
Would you like to know how to process the increase correctly, or would you like us to review your mileage reimbursement policy?
Contact our payroll team directly by sending an e-mail to salaris@practical.nl
