Starting May 22, 2026, it will be possible in the Netherlands to retroactively apply a tax-free allowance for travel expenses of €0,25 per kilometer, effective January 1, 2026. What does this mean for employers, employees, business owners, volunteers, and individuals?
Employers and employees
Employers may provide their employees in the Netherlands with a tax-free travel allowance of €0,25 per kilometer retroactively effective January 1, 2026. Until now, this tax-free amount was €0,23 per kilometer in 2026.
This amount applies to commuting and business travel. It does not matter which mode of transportation the employee uses. The allowance therefore applies to travel by car, bicycle, on foot, or by public transportation.
Please note!The government is encouraging employers to utilize this maximum tax-free travel allowance, but an employer is not required to actually reimburse the employee €0,25 per kilometer. The amount of the allowance is and remains an agreement between the employer and the employee.
Tip! If an employee travels by public transportation, an employer may also choose to reimburse the actual costs of public transportation tax-free. This was already possible and has therefore not changed.
Tip! Employers who make use of the retroactive effect may use correction notices to incorporate the increase in the tax-free travel allowance into the 2026 payroll-tax returns already filed.
Entrepreneurs and profit-sharing participants
The increase from €0,23 to €0,25 also applies to entrepreneurs subject to income tax (IB) and profit-sharing participants. They will be able to claim deductible business travel expenses at a rate of €0,25 per kilometer in their 2026 income tax return for the entire year 2026.
Volunteers
A volunteer who waives their right to a travel allowance may also include €0,25 per kilometer for their mileage throughout 2026 when calculating their charitable donation deduction on their 2026 income tax return.
Please note! Only the amount has changed from €0,23 to €0,25 per kilometer. The other conditions for this deduction remain unchanged. You must therefore still meet these conditions before you are eligible for the deduction..
Individuals
Individuals can also claim €0,25 per kilometer for the entire year in their 2026 income tax return. This applies to:
- deduction of travel expenses to, among other places, a doctor or other healthcare provider and a pharmacy,
- deduction of travel expenses for visiting the sick, and
- deduction of travel expenses related to weekend expenses for people with disabilities.
Please note!Additional conditions also apply to these deductions. These have not changed, so you must still meet them to be eligible for the €0.25 per kilometer deduction.
Structural
The approval to reimburse €0,25 instead of €0,23 tax-free is included in a policy decision. On Prinsjesdag 2026, this will be included in a bill. The increase from €0,23 to €0,25 is not just for 2026, but is structural. This means that the €0,25 rate will still apply after 2026.
Affordable unlimited train travel
The government is exploring further measures to mitigate the impact of high fuel prices. For example, there is a proposal to offer unlimited train travel during off-peak hours (weekdays between 9 a.m. and 4 p.m. and from 6:30 p.m. to 6:30 a.m., and all day on weekends and holidays) for €49 per month. This would be available from June 21 to September 1, 2026.
Please note! A similar product for unlimited travel during off-peak hours with NS already exists. It is called Flex Dal Vrij and currently costs €127.95 per month. During the period from June 21 to September 1, 2026, this would cost €49 per month.