Company Car Tax Calculator 2026

Understanding Bijtelling: The Dutch Company Car Tax for Expats

If you have recently started working in the Netherlands and your employer offers you a company car, one of the first things you need to understand is bijtelling — the Dutch benefit-in-kind taxation for company vehicles. Unlike many countries where a company car is a straightforward perk, in the Netherlands the tax implications can significantly affect your monthly take-home pay. As an expat, getting a handle on how bijtelling works is essential for making informed decisions about your compensation package.

Bijtelling literally translates to "addition" — because a fixed percentage of the car's original list price is added to your gross taxable income. You do not actually receive this money; instead, it is a phantom income that increases the amount of income tax and social contributions you owe. The result is a lower net salary each month. For a car with a catalog value of €40,000, this could mean paying €250 to €350 extra in taxes per month, depending on your marginal tax rate.

How Bijtelling Is Calculated in 2026

The calculation itself is straightforward, but the details matter. Here is how the Dutch tax authority (Belastingdienst) determines your bijtelling:

1. Determine the catalog value: This is the original new price of the car, including BPM (Dutch vehicle purchase tax) and VAT, as recorded on the date of first registration in the Netherlands. Even if your employer bought the car secondhand for €25,000, if its original catalog value was €45,000, the bijtelling is based on €45,000.
2. Apply the bijtelling percentage: In 2026, the standard rate is 22% for conventional vehicles (petrol, diesel, hybrid). For fully electric vehicles, a reduced rate of 16% applies to the first €30,000 of catalog value, with the standard 22% applying to the remainder.
3. Subtract any personal contribution: If you pay your employer a monthly fee for the private use of the car, this is deducted from the bijtelling amount (but never below zero).
4. Add the result to your taxable income: The net bijtelling amount is added to your gross salary, increasing your income tax burden.

Practical Example: Standard Petrol Car

Let us work through a concrete example. Suppose your employer provides a Volkswagen Passat with a catalog value of €48,000 and you earn a gross annual salary of €60,000:

• Bijtelling: €48,000 × 22% = €10,560 per year
• This is €880 per month added to your gross taxable income
• If your marginal tax rate is 37.07% (first bracket in 2026), the net monthly cost is approximately €880 × 37.07% = €326 per month
• If you are in the second tax bracket (49.50%), the monthly cost rises to approximately €880 × 49.50% = €436 per month

In exchange, you receive a car that your employer maintains, insures, and fuels (in most lease arrangements). When comparing this to owning or leasing a car privately, remember to factor in insurance (€80-150/month), maintenance (€50-100/month), depreciation, and road tax.

Practical Example: Electric Vehicle

Now consider a Tesla Model 3 with a catalog value of €52,000:

• First €30,000 at 16%: €30,000 × 16% = €4,800
• Remaining €22,000 at 22%: €22,000 × 22% = €4,840
• Total bijtelling: €4,800 + €4,840 = €9,640 per year
• Monthly addition: €803
• Net monthly cost at 37.07%: approximately €298

Compare this to the same value petrol car, which would cost €52,000 × 22% = €11,440 per year, or roughly €353 per month net at 37.07%. The electric car saves you about €55 per month in taxes, plus you benefit from significantly lower fuel costs and potentially free charging at work.

The 500-Kilometer Private Use Threshold

One of the most frequently asked questions from expats is whether they can avoid bijtelling altogether. The answer is yes, but with strict conditions. If you drive fewer than 500 kilometers privately per calendar year, no bijtelling is applied. This is a hard threshold — drive 501 kilometers privately and the full bijtelling kicks in for the entire year.

There are important nuances for international workers to understand:

• Commuting does not count as private use: In the Netherlands, traveling from your home to your regular workplace is classified as business use (zakelijk verkeer). This is different from countries like the UK or Germany where commuting is considered private.
• You need proof: To claim the exemption, you must maintain a detailed mileage log (rittenregistratie) that records every trip: date, starting location, destination, route, kilometers, and purpose. Alternatively, you can apply for a "Verklaring geen privégebruik auto" through the Belastingdienst.
• The tax authority audits: The Belastingdienst regularly checks mileage logs against fuel card records, toll data, and GPS information. Fraudulent logs carry penalties of up to 100% of the evaded tax.
• Weekend trips count: Any personal use — grocery shopping, visiting friends, weekend road trips — accumulates toward the 500 km limit. In practice, it is extremely difficult to keep private usage below 500 km per year unless you also own a personal car for private driving.

Personal Contribution: Reducing Your Tax Burden

Many company car arrangements include the option (or requirement) to pay a personal contribution (eigen bijdrage). This is a monthly amount you pay to your employer for the private use of the car. The personal contribution directly reduces the bijtelling amount that gets added to your taxable income.

Example: Your bijtelling is €10,000 per year and you pay a personal contribution of €150 per month (€1,800 per year). Your effective bijtelling becomes €10,000 - €1,800 = €8,200 per year. At a 37.07% tax rate, the personal contribution saves you €1,800 × 37.07% = €667 per year in tax, but you paid €1,800 — so you are €1,133 worse off. The personal contribution only makes financial sense if the total car package (including fuel, insurance, and maintenance provided by the employer) still offers a net benefit compared to private alternatives.

Important rule: the personal contribution cannot reduce the bijtelling below zero. If your contribution exceeds the bijtelling amount, the excess is simply lost — there is no tax refund for overpayment. Always calculate the optimal contribution carefully using the calculator above.

Company Car vs. Private Lease: What Is Better for Expats?

Many international workers in the Netherlands face the choice between accepting a company car with bijtelling or taking a mobility budget and leasing a car privately. Here is a detailed comparison to help you decide:

For many expats, the company car makes sense for cars up to about €40,000 catalog value, especially if the employer covers fuel. For more expensive cars, or if you drive very few private kilometers, private leasing or a mobility budget might be more cost-effective. Use the calculator above to model your specific situation.

The Electric Car Tax Advantage Explained

The Netherlands actively encourages electric vehicle adoption through favorable tax treatment. For expats considering a company car, going electric can deliver meaningful savings:

• Lower bijtelling rate: 16% on the first €30,000 vs. 22% for conventional cars. This saves up to €1,800 per year in bijtelling alone on the first €30,000 of value.
• No road tax (MRB) until 2025: Electric cars were fully exempt from road tax. From 2025, they pay a reduced rate of 25% of the standard petrol rate, still a significant discount.
• Lower energy costs: Charging an electric car costs roughly €0.04-0.08 per kilometer, compared to €0.10-0.15 for petrol. If your employer provides a charge card, this difference goes directly to your benefit.
• Environmental zones: Many Dutch cities are introducing zero-emission zones (milieuzones) that will restrict combustion engine cars. With an electric company car, you have unrestricted access everywhere.

The reduced rate of 16% was originally scheduled to increase, but the government has extended it to encourage further EV adoption. Keep in mind that the €30,000 threshold means that for very expensive electric cars (above €60,000), the tax advantage compared to conventional vehicles diminishes proportionally.

How Bijtelling Interacts with the 30% Ruling

If you are an expat with the 30% ruling, you might wonder whether the ruling reduces your bijtelling. Unfortunately, it does not work that way. The bijtelling is added to your taxable income — that is, the income after the 30% ruling reduction. Let us illustrate with an example:

• Gross salary: €80,000
• After 30% ruling: taxable salary = €56,000 (70% of €80,000)
• Company car bijtelling: €10,000
• Total taxable income: €56,000 + €10,000 = €66,000

The bijtelling of €10,000 is not subject to the 30% reduction. However, because your overall taxable income is lower thanks to the ruling, the marginal tax rate applied to the bijtelling may be lower, resulting in a slightly smaller net impact. This is an important consideration when negotiating your compensation package.

Keeping a Mileage Log: Tips for International Workers

If you want to claim the 500 km exemption, the mileage log is your most critical document. Here are practical tips specifically for expats:

• Use a digital app: Several apps are specifically designed for Dutch mileage logging and are accepted by the Belastingdienst. Popular options include MileageWise and AutoMile. Manual spreadsheets are accepted but harder to maintain consistently.
• Record every single trip: Every time you start the car, log it. Include date, time, starting point, destination, odometer reading, distance, and whether the trip was business or private. Missed entries create gaps that auditors will question.
• Cross-border travel: If you frequently travel to Belgium, Germany, or other countries for work, these trips count as business use. Document them thoroughly, including client names and meeting purposes.
• Holiday trips: Driving the company car on vacation clearly counts as private use. A week-long holiday road trip can easily exceed 500 km on its own. Consider renting a car for holidays if you want to maintain the exemption.
• Audit preparation: Keep your log for at least 7 years (the Dutch tax retention period). The Belastingdienst can request your log at any time. Inconsistencies between your log, fuel receipts, and GPS data can result in the full bijtelling being imposed retroactively, plus penalties.

Tax Rates and Impact on Your Net Salary

The actual cost of bijtelling depends on your marginal tax rate. In 2026, the Dutch income tax brackets are:

As you can see, high earners pay considerably more for the same company car. If your combined salary and bijtelling pushes you into the top tax bracket, the cost of a company car increases by roughly 34% compared to someone in the first bracket. This is why senior professionals with expensive company cars often find that the bijtelling costs more than a private lease.

What Happens When You Leave the Company or the Netherlands?

Expats change jobs more frequently and many eventually leave the Netherlands. Here is what you need to know about bijtelling in these situations:

• Changing employers: If you switch to a new employer, the old company car goes back and the bijtelling stops. If your new employer also offers a company car, a new bijtelling period starts based on the new car's catalog value.
• Leaving the Netherlands: When you emigrate, you return the company car and bijtelling ceases from the date the car is no longer at your disposal. Pro-rata calculation applies — if you leave on July 1, you only pay bijtelling for six months.
• End of employment: During your notice period, if you still have the car, bijtelling continues. Some employers allow you to return the car early during the notice period to reduce the tax impact.
• Garden leave: If you are on garden leave (vrijstelling van werkzaamheden) but still have access to the company car, bijtelling still applies. Only when the car is formally returned does the addition stop.

Common Mistakes Expats Make with Company Car Tax

After helping thousands of international workers calculate their bijtelling, we see these mistakes repeatedly:

1. Confusing catalog value with purchase price: The bijtelling is always based on the original catalog price, not what was paid for the car. A three-year-old company car with a market value of €25,000 might still have a catalog value of €45,000.
2. Ignoring bijtelling in salary negotiations: When comparing job offers, always calculate the net salary including bijtelling. A €65,000 salary with a €50,000 company car is not the same as a €65,000 salary with a €500/month mobility budget.
3. Assuming the 30% ruling covers bijtelling: It does not. The bijtelling is added on top of your taxable income, regardless of the 30% ruling.
4. Not considering total cost of ownership: Bijtelling is just one component. Factor in fuel, insurance, maintenance, road tax, and parking — all of which the employer typically covers for company cars.
5. Forgetting about BPM for imported cars: If you bring your own car from abroad and later get a company car, note that importing a personal car to the Netherlands involves paying BPM (vehicle purchase tax), which can be substantial for combustion engine vehicles.

Frequently Asked Questions

Sources and Further Reading

The information on this page is based on the following official sources:

• Belastingdienst: Company car addition (bijtelling)
• RDW: Vehicle registration and catalog values
• Rijksoverheid: Tax plan and rates

Need personalized advice on your company car situation? Consider consulting a tax advisor who specializes in expat taxation. The figures on this page are indicative and should not replace professional guidance tailored to your specific circumstances.