Mileage Allowance & Time Tracking 2026: Processing €0.25/km Correctly
Not legal advice — consult a tax adviser for your specific situation.
From 1 January 2026, the tax-free mileage allowance increases to €0.25 per kilometre (up from €0.23), according to the Dutch Tax Authority (Belastingdienst). For freelancers and SME owners with significant business travel, that adds up quickly. The backdated nature of the measure also creates an administrative challenge you cannot afford to ignore.
What Changes in 2026?
The Dutch government raised the tax-free mileage rate to support purchasing power. Although formally introduced on 1 July 2026, the rate applies retroactively from 1 January 2026.
Practical implications:
- Employers who paid €0.23 in the first half of the year may pay the €0.02 difference tax-free retrospectively.
- Freelancers who logged January to June 2026 journeys may recalculate them at €0.25.
- Payroll tax filings already submitted may need correction.
The Belastingdienst has published guidance on processing this in payroll filings. Review it before making corrections, as the order of processing matters.
| Situation | Rate before 1-1-2026 | Rate from 1-1-2026 |
|---|---|---|
| Tax-free employer reimbursement | €0.23/km | €0.25/km |
| Freelancer business deduction | €0.23/km | €0.25/km |
| Difference per 10,000 km | +€200.00 |
Example: An IT consultant driving 15,000 business kilometres per year gains €300 in additional tax-free reimbursement or deduction, provided the journeys are properly documented.
What Records Does the Tax Authority Require?
The Belastingdienst states that a complete mileage log is required for business use of a private vehicle. Without it, the tax authority may classify your reimbursement as taxable income.
According to the Belastingdienst, a compliant mileage log must include:
- Date of the journey
- Starting and ending odometer readings
- Departure point and destination
- Purpose (business or private)
- Name of the client or location visited
Build this record journey by journey, ideally in real time. Reconstructing logs after the fact is error-prone and viewed critically by the tax authority.
The same principle applies to time and expense records. See how to combine accurate time tracking with invoicing as a freelancer for a watertight administration.
Three Ways to Log Mileage
1. Spreadsheet Suitable if you drive fewer than around 50 business journeys a year. Low cost, but time-consuming and prone to errors. Exporting to your accounts requires manual effort.
2. GPS apps (e.g. Driversnote or MileIQ) Automatic trip detection, route recording and mileage calculation. You classify each trip as business or private afterwards. Export reports can be checked against Belastingdienst guidelines, making this practical for frequent drivers.
3. Integrated business software If you already use software for time tracking, project management and expenses, adding mileage to the same system makes sense. Your kilometres, hours and client data stay in one place, and you can link expenses directly to a project or contact.
With PrikKlokPlus, you log hours, expenses and project costs in a single environment. Get your expense records in order today and stop letting journeys and hours scatter across separate tools.
Handling the Backdated Recalculation
For employers (SMEs):
- Pull your total business kilometres for January to June 2026 from your mileage log.
- Calculate the difference: (total km) × €0.02.
- Pay this amount tax-free and process it in your next payroll filing.
- Confirm your payroll software is updated to €0.25 for the second half of the year.
For freelancers:
- Retrieve your mileage log for the first half of 2026.
- Recalculate business kilometres at €0.25.
- Update your accounts and include the corrected amount in your income tax return.
If employees submit expense claims, it is also worth reading how to automatically invoice based on hours worked. The same logic applies to mileage costs passed on to clients.
For a full overview of your obligations, see our knowledge base article on the tax-free mileage allowance 2026 for freelancers.
What This Means for Your Administration
The rise to €0.25/km is good news, but it requires action. The retroactive start date of 1 January 2026 means you may need to recalculate past journeys and correct payroll filings or your bookkeeping. The Belastingdienst states that keeping a complete mileage log is a firm requirement, regardless of the rate change. An integrated tool that brings time tracking, expenses and project costs together makes this significantly easier.
Not legal advice — consult a tax adviser for your specific situation.
Frequently Asked Questions
Does €0.25/km apply to cycling as well? According to the Belastingdienst, the tax-free rate applies to all modes of transport: car, bicycle, motorbike and public transport (when reimbursed on an actual-kilometre basis). A separate tax scheme exists for company bicycles, which works differently.
Do I need a mileage log as a freelancer without a company car? Yes. The Belastingdienst states that using your private vehicle for business purposes still requires a complete mileage log for the deduction to be accepted. Without it, the deduction will not be recognised.
Can I reimburse or deduct more than €0.25/km? Employers may pay more, but according to the Belastingdienst any amount above €0.25 is treated as taxable wages. For freelancers, €0.25 is the maximum tax-free deduction per business kilometre when using a private vehicle.
My first-half payroll filing is already submitted. Do I need to correct it? It depends on how you processed the reimbursement. The Belastingdienst has published specific guidance on this. Review it or discuss it with your accountant before submitting a correction.
How do I link mileage to a project in my administration? In PrikKlokPlus, you log expenses, including kilometres, directly against a project or client. This gives you a clear cost overview per assignment and lets you pass those costs straight through to your invoice.
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Log hours, journeys and expenses in one clear overview. Try PrikKlokPlus free and keep your business mileage records complete from today.