Dutch Travel Allowance 2026: €0.23/km Tax-Free
The €0.23/km rule
The Belastingdienst sets a maximum tax-free kilometre rate for commuting. In 2026 it is €0.23 per km, regardless of whether you travel by car, bicycle or on foot. The rate covers both directions of the daily commute. It was raised from €0.21/km in 2023 and has stayed at €0.23 since 2024.
There is no statutory monthly or annual ceiling on the tax-free amount itself. If your employer reimburses every commuting kilometre at exactly €0.23, the full amount is tax-free. In practice many employers cap the one-way distance they will reimburse at 40 or 50 km, based on company policy or a collective labour agreement (CAO).
Annual tax-free allowance by commute distance
The table assumes a standard 5-day week with 214 working days per year (accounting for holidays) and a fixed one-way commute distance.
| One-way distance | Round trip km | Annual allowance | Per month |
|---|---|---|---|
| 10 km | 20 km | €984.40 | €82.03 |
| 20 km | 40 km | €1,968.80 | €164.07 |
| 30 km | 60 km | €2,953.20 | €246.10 |
| 40 km | 80 km | €3,937.60 | €328.13 |
| 50 km | 100 km | €4,922.00 | €410.17 |
Value of the tax-free allowance
Because the allowance is paid from gross without tax, it is worth more than the same amount in net salary. At a 40 km round trip (€3,937.60/year):
| Box 1 rate | Tax saved per year | Effective value of allowance |
|---|---|---|
| 36.97% (lower bracket) | €1,455.73 | €1,455.73 |
| 49.50% (top bracket) | €1,949.11 | €1,949.11 |
The saving shown is the extra net pay you would need to equal the tax-free allowance, i.e. the tax foregone on €3,937.60 at your marginal rate.
Home-working allowance (thuiswerkvergoeding)
For days you work from home, no commuting allowance applies. Instead employers can pay a tax-free home-office allowance of up to €2.35 per day in 2026. This flat rate covers electricity, heating and broadband costs. On five home-working days per week for 48 weeks that adds up to €564 per year tax-free.
Many Dutch employment contracts now specify both rates separately, so a hybrid worker might receive the km allowance on office days and €2.35 on home days.
Public transport alternative
Employers may provide an NS Business Card or OV-chipkaart instead of a km allowance. The actual public transport costs are then fully tax-free with no per-km limit. This is often more advantageous for employees with a short commute served by frequent trains.
Frequently asked questions
Can my employer pay more than €0.23 per km?
Yes, but only €0.23 per km is tax-free. Any amount above that is treated as taxable wages and subject to loonheffing. Some collective labour agreements (CAOs) stipulate a higher rate, which the employer then partially grosses up.
Do I get a commuting allowance for working from home?
No commuting allowance is paid for days you work from home. Instead, employers may pay a home-office allowance of up to €2.35 per home-working day tax-free in 2026, covering electricity, heating and internet costs.
What if my employer provides an NS travel card instead of a km allowance?
An employer-provided public transport card (for example an NS Business Card) is fully tax-free as long as it is used for commuting or business travel. There is no monetary cap on the tax-free treatment of actual public transport costs.
Source: Belastingdienst Nieuwsbrief Loonheffingen 2026. Tax-free rate €0.23/km confirmed for 2026. Last updated 2026-11-04.