Home Working Allowance 2026: Tax-Free Amount & Correct Registration
From 1 January 2026, employers may pay staff an untaxed home working allowance of €2.45 per home working day, €0.05 more than in 2025. A small rise with significant administrative consequences: mixing up home-working days and commuting days can trigger a payroll tax correction. This article explains how the scheme works, where employers go wrong, and how to keep your records watertight.
This article does not constitute legal or tax advice — consult a tax adviser for your specific situation.
How Does the Targeted Exemption for Home Working Allowances Work?
The home working allowance falls under the targeted exemption within the Dutch Work-Related Costs Scheme (WKR). You can pay it tax-free without it eating into your discretionary budget. The condition: choose per day, either the home working allowance (€2.45) or the travel allowance (maximum €0.23 per kilometre). You cannot combine both for the same day.
According to the Dutch Tax Authority, the home working allowance is indexed automatically via the Tax Plan; the travel allowance is not. That requires separate legislation, which is not anticipated for 2026. Always verify final figures after publication via belastingdienst.nl.
| Allowance | 2025 | 2026 (expected) | Auto-indexed? |
|---|---|---|---|
| Home working allowance | €2.40/day | €2.45/day | Yes |
| Travel allowance | €0.23/km | €0.23/km | No |
Note: The €2.45 figure is based on the indexation methodology in the 2026 Tax Plan. Final confirmation was pending at the time of writing. Monitor the official publication of the definitive Tax Plan at belastingdienst.nl.
Hybrid Working: Why Separate Registration Matters
Suppose an employee works from home on Monday and Wednesday, and commutes on Tuesday, Thursday and Friday. To apply the correct allowance each day, you need to know exactly which type of day it was. An informal tally will not hold up under an audit.
You need a registration system that:
- records home-working days and commuting days separately, not as a weekly block;
- is completed by the employee themselves, so you can justify payments afterwards;
- can be exported for your payroll administrator or accountant.
PrikKlokPlus logs per day whether an employee worked from home or on-site, automatically linking the correct allowance to the correct day, with no manual spreadsheet calculations required. Get your expense records in order today and avoid errors on your next payroll run.
For freelancers, the home working allowance works differently: as a self-employed individual you cannot apply the targeted exemption to your own income. You may, however, deduct home office costs as business expenses, provided your workspace meets the tax authority's conditions. See also Tax-free mileage allowance 2026: what changes for freelancers? for the broader context of business travel costs.
Practical Steps for Employers in 2026
- Check the standard rate from 1 January. Update the amount in your payroll software or expense tool once the definitive Tax Plan is published.
- Record home-working days consistently. Employees should indicate daily whether they are working from home or on-site, not retrospectively each week.
- Never combine both allowances on the same day. Build this as a hard rule in your system so it does not depend on the payroll administrator's vigilance.
- Document the arrangements. Set out in a home-working policy or employment contract on which days employees may work from home and what allowance applies.
- Link registration to payroll export. This eliminates manual re-entry and keeps your expense administration aligned with the payslip.
Also relevant if you deploy staff at varying locations: read our overview of Payroll Compliance 2026: Employer Checklist for a complete picture of your obligations.
Conclusion
The home working allowance is expected to rise to €2.45 per day in 2026 and, if applied correctly, falls entirely outside the WKR discretionary budget. The critical point is not the amount itself but the registration: only employers who record home-working days and commuting days separately, day by day, can safely apply the targeted exemption. Set up that registration now to avoid corrections on the very first payroll run of 2026.
This article does not constitute legal or tax advice — consult a tax adviser for your specific situation.
Frequently Asked Questions
Can I pay a higher home working allowance than €2.45? Yes, but the amount above the standard rate is either taxable salary or counts against your WKR discretionary budget. Only the standard rate qualifies for the targeted exemption.
What if an employee briefly visits the office on a home-working day? The Dutch Tax Authority takes the position that the day is classified according to where the employee works predominantly. If someone visits the office for a meeting but works from home for the rest of the day, you can generally apply the home working allowance. Document your policy in writing to avoid disputes.
Does the home working allowance apply to zero-hours and flex workers? Yes, the targeted exemption applies to all employees with an employment contract, including zero-hours workers. The requirement to register home-working days daily still applies. Read more about flex worker rights in Flex Worker Security Act: What Changes?
What about freelancers who hire staff? If you are a freelancer or small employer hiring staff, the same rules apply as for any regular employer. The allowance paid to employees or contracted workers with an employment agreement falls under the targeted exemption. Your own hours as a self-employed person are treated differently for tax purposes.
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