All about additional tax

1. What is additional payment?

Do you drive more than 500 kilometers per year privately in a company carIf so, the Tax and Customs Administration considers that you are enjoying a benefit. That benefit is taxed as remuneration in kind: the addition to taxable income. You pay income tax on a percentage of the car's list price, as if you were receiving that amount as extra salary.

The exact amount varies by car type and year of manufacture. Electric cars have a lower percentage than petrol or diesel cars. Would you like to see the current percentages? View the complete guide to company car tax 2026. Or calculate it directly for your own situation with the TrackJack tax addition calculator.

2. Calculate taxable benefit

Calculating the taxable benefit is less complicated than it sounds. Below is a concrete example. Suppose the company car has a list price of €25.000, a taxable benefit percentage of 22%, and you pay a personal contribution of €1.200 per year.

Would you like to calculate it for your own car? Use the tax addition calculator: enter your list price, tax bracket, and personal contribution, and you will immediately see what the car costs you net per month.

3. Tax addition categories

The tax addition percentage depends on the type of car and the year of first registration. Electric cars pay less, while fossil fuel cars pay the standard rate of 22%. View the current percentages per year:

• Company car tax 2026: the complete guide
• Additional tax 2025
• Electric car addition
• Additional tax 2024
• Additional tax 2023
• Additional tax 2022
• Additional tax 2021

4. Can I avoid additional tax?

Yes, that is possible. You can avoid the tax addition for the private use of a company car if you demonstrate that you drive no more than 500 kilometers privately per year. You provide this proof with a complete mileage registration.

It sounds simple, but in practice, things can easily go wrong. A forgotten trip, an illegible notebook, or an error in a spreadsheet: the Tax Authorities only accept airtight records. With a TrackJack GPS system, everything is tracked automatically. You don't have to enter anything manually, and your logbook is always up to date. Read more about avoid additional tax or view our trip registration solutions.

5. How is tax withheld on the taxable benefit handled?

The treatment of the taxable benefit differs for employees and entrepreneurs:

• Employee: The employer withholds payroll tax on the taxable benefit and remits this monthly to the Tax and Customs Administration. Any personal contribution you pay for private use is deducted from this.
• Entrepreneur (sole proprietorship or general partnership): the addition is processed in the annual income tax return, not via the payslip.

Responsibility of the employer

The employer is responsible for the correct remittance of payroll tax. Does an employee hold a complete mileage log If the employer fails to demonstrate less than 500 km of private use, the employer is jointly responsible for the accuracy thereof.

Does the employer want to rule out that risk? Then he asks for a declaration of no private use of car imposed on the employee. If the registration is nevertheless incomplete or incorrect, the additional assessment is levied on the employee, not the employer, unless the employer knew that the declaration was unjustified.

6. Taxable benefit despite illness

Suppose you are sick and are effectively no longer driving the company car. Does that automatically mean you do not have to pay any tax on the benefit-in-kind? Unfortunately not.

In 2017, exactly this scenario played out before the judge. An employee decided to stop driving after a stroke, but did not keep trip registration with. The Tax and Customs Administration imposed an additional assessment covering four consecutive years.

The judge was clear: illness does not preclude others (family members, partner) from making private trips with the car. Without proof of non-use, the taxable benefit remains payable. Particularly piquant: the driver had received a more expensive company car after the heart attack, which the judge found remarkable.

7. Choice regarding tax addition with new employer

Are you changing employers? Then you can also make a new choice regarding your tax addition: continue with the addition, or switch to trip registration to avoid tax addition.

The taxable benefit is handled through the employer's payroll administration. Your previous employer is only responsible for payroll taxes for the period you were employed by him. If this is not a full year, a pro-rata portion of the 500 km limit applies.

8. Taxable benefit if you do not drive a company car for the entire year

Did you not have a company car for the entire year? Then your private use is converted into an annual mileage. If you cannot demonstrate that this remains below 500 km on an annual basis, a taxable benefit is due, but only for the months that the car was available.

Be careful when switching from “no tax addition” to “tax addition”

Do you switch from a situation without tax addition during the year (via a complete trip registration) to a situation with tax addition, while you have already driven more than 500 km privately? Then you must pay tax addition for the entire year, not just for the remaining months.

Stopping the tax addition in the middle of the year is only possible when changing employers or if you permanently return the car. Always document this in writing.

9. Taxable benefit for entrepreneurs

As a self-employed person, you may also be subject to a taxable benefit. However, it works differently than for employees: wage tax is not withheld monthly, but the taxable benefit is adjusted against your taxable profit at the end of the year.

This applies to entrepreneurs with a sole proprietorship, general partnership, or professional association, provided the car is part of the business assets and private use exceeds 500 km per year. More details? Read about taxable benefit for a sole proprietorship.

Are the car costs lower than the taxable benefit?

In that case, the taxable benefit for the entrepreneur is at most equal to the actual car costs. You never pay more than the car actually cost you. Check it with the tax addition calculatorSee also: Calculating company car tax: what does it cost and how do you avoid it?

10. Use the car for other work as well

Do you also use the company car outside of your employment, for example for a second job or your own business? Then those kilometers are in principle private kilometers and count towards the 500 km limit.

Tax-free mileage allowance

Do you drive business kilometers for a second employer or your own company? Then that party may have a tax-free kilometer allowance paying a maximum of €0,23 per kilometer (2026). Commuting is also included.

Volunteering and the car

Do you use the car for an ANBI (Public Benefit Institution)? Then you can designate €0,23 per kilometer as a donation, provided you waived reimbursement while a claim would have been possible.

11. Taxable benefit for a shared car

Do you drive a shared car through your employer? If so, the tax situation regarding the benefit-in-kind is different than with a fixed lease car. The VNA (Association of Dutch Car Leasing Companies) has made agreements with the Tax and Customs Administration regarding this.

No taxable benefit is levied if the conditions are met Industry Regulation for Private Use of Shared Cars: you pay a market-rate rent for private use and the employer acts as the landlord.

Demonstrate use of shared car

Usage must be transparent: when, for how long, and how many kilometers per trip. This can be done via a journey registration system with quality mark of the Vehicle Registration Systems Certification Foundation. Read more: everything about car sharing and tax liability.

12. Car salesman and tax addition

Do you, as a dealer employee, regularly drive various demo cars? If so, specific tax rules apply to you for calculating the taxable benefit. Read all about the tax addition scheme for car salespeople.

13. Pilot variable addition

Traffic jams are getting longer, and public transport is becoming congested. As part of the Delta Plan 2030, the Mobility Alliance presented a proposal for a variable tax addition: where you do not pay a fixed percentage, but an amount that depends on how much and when you drive. The idea is that this encourages drivers to drive less during busy periods. The pilot is still in an exploratory phase.