Tax-free travel allowance has been increased

For whom? 

• employers who reimburse travel costs for their employees 
• entrepreneurs for income tax who use travel expenses as a tax deduction 

What changes? 

The tax-free travel allowance (reiskostenvergoeding) has been increased from €0.23 to €0.25. You can already apply the new amount retroactively from 1 January 2026 (in Dutch). 

Are you an entrepreneur for income tax, such as a self-employed professional? Then you can deduct this amount per kilometre from your profit. 

Are you an employer? You can reimburse your employee’s travel expenses tax free. For public transport travel expenses, and costs for taxi, boat or aeroplane you can choose to reimburse the actual costs, or the €0.25 per kilometre. 

You can reimburse your employees for more than €0.25 per kilometre, for example to encourage bicycling. You can use the discretionary margin of the work-related costs scheme to make this additional increase tax-free. 

The tax-free travel allowance does not apply to staff with a company car or a company bicycle. 

When? 

The change in law takes effect retroactively on 1 January 2026.