The maximum tax-free travel allowance in the Netherlands has increased from €0.23 to €0.25 per kilometer, as announced by the Dutch Ministry of Finance in May 2026, with retroactive effect from 1 January 2026.

This adjustment was introduced to support households and businesses in response to rising fuel costs and ongoing disruptions in energy markets.

For employers, this may require action depending on your current policy:

•  If your travel allowance is linked to the maximum tax-free allowance, a retroactive correction as of 1 January 2026 is required.
•  If you apply a fixed allowance (for example €0.23 per kilometer), no adjustment is mandatory. However, you may wish to consider increasing the allowance and determine the appropriate effective date for your organization.

Please note that this change does not generally oblige employers to increase their travel allowance. Rather, it increases the maximum amount that can be reimbursed tax-free, should an employer choose to do so.

If you have any questions regarding the impact of this change, please do not hesitate to contact us. If you would like to explore how Briddge can support your organization with payroll, tax, HR, or employment-related matters, feel free to connect with us.

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