In the Netherlands, the word "car" no longer conjures up images of freedom or independence for many, but rather of financial burdens. Car ownership increasingly seems to be a cash cow for the government. Especially in 2027, business gasoline drivers will face even higher costs, which also include a proper trip registration is becoming more important than ever. Time to consider all forms of car tax in the Netherlands.

Car tax as a source of income for the state

It's almost symbolic: seven deadly sins, seven car taxes. From fuel to insurance and from purchase to use – it's virtually impossible for drivers to avoid anything. Car taxes are multifaceted and deeply rooted in the Dutch tax system.

These are the 7 most important car taxes in the Netherlands

1. VAT on purchase and use

VAT applies to virtually everything: the purchase of the car, maintenance, fuel, and even parking fees. Everyone pays it, whether you drive privately or for business.

2. BPM: the purchase levy

Passenger Car and Motorcycle Tax (BPM) is levied upon the purchase of a vehicle. The amount depends on CO₂ emissions, which is intended to encourage environmentally friendly driving.

3. Employee addition

Anyone who also uses a company car privately (more than 500 km per year) is subject to additional tax. You pay tax on a percentage of the car's list price.

4. Employer addition

Employers pay a pseudo-final levy on their payroll tax: 52% on 22% of the replacement value. This amounts to an additional 11,44% tax on company gasoline cars.

5. Motor vehicle tax (MRB)

Also known as road tax. This is a monthly fee, depending on weight, fuel type, and province of residence.

6. Fuel duty and tax

In addition to the price of the fuel itself, you pay excise duty and VAT. This double taxation makes refueling an expensive affair for every car owner.

7. Insurance tax

Every car must have at least third-party liability insurance. The premium for that insurance is also subject to insurance tax.

Extra: parking tax

Not officially included in the "big seven," but definitely relevant: parking fees. Especially in cities, these costs quickly add up.

From 2027: new levy for business petrol cars

Car tax will be increased again starting in 2027. Petrol-powered company cars will be subject to an additional final levy in payroll tax. This means employers will pay 52% of the 22% addition to the list price – or an additional 11,44% per year. Electric cars will lose their advantage, but petrol cars will actually become more expensive.

Car taxes in the Netherlands: where are the limits?

While encouraging electric driving is understandable, the cumulative car taxes in the Netherlands often feel unfair. For many people, car ownership isn't a luxury, but a necessity. The question remains: how long can motorists bear this pressure?