Good news for employers and employees: the Dutch government is increasing the tax-free travel allowance from €0.23 to €0.25 per kilometre.
The increase applies retroactively from 1 January 2026.
This means that if an employer has paid €0.23 per kilometre or less, the additional €0.02 per kilometre can still be paid to employees tax-free.
Employers who previously treated the amount above €0.23 per kilometre as taxable may, in certain cases, correct their payroll tax returns. Part of the payroll tax already paid may also be reclaimed or offset.
The new rule can already be applied; there is no need to wait for the official adoption of the 2027 Tax Plan.
It is advisable to review the 2026 travel expense reimbursements and make any necessary corrections.