Company Car Taxation (Bijtelling)

Key Takeaways

If your employer provides a car that you also use privately, a bijtelling (addition) is added to your taxable income.
The standard bijtelling rate is 22% of the car's catalogue value per year.
Electric vehicles receive a reduced rate of 16% on the first €30,000 of catalogue value (22% above that).
If you drive fewer than 500 private km per year, you can apply for an exemption from the bijtelling.
The bijtelling is not a tax — it is additional taxable income, which is then taxed at your marginal rate.

What Is the Bijtelling?

When your employer provides a car (a "lease car" or company car) and you are allowed to use it for private purposes, the Dutch tax system considers the private use as a benefit in kind. This benefit is added to your taxable income as the "bijtelling" — literally "addition."

The bijtelling is a percentage of the car's catalogue value (catalogusprijs) — the original list price of the car including BPM (vehicle tax) and VAT, but excluding optional extras ordered after purchase.

Good to know

The bijtelling applies regardless of how much you actually drive privately. Whether you drive 1,000 km or 20,000 km for personal use, the bijtelling is the same fixed percentage. The only way to avoid it entirely is to stay under 500 private km per year and obtain a declaration from the Belastingdienst.

Bijtelling Rates (2026)

Vehicle Type	Rate	Applies To
Regular cars (petrol, diesel, hybrid)	22%	Full catalogue value
Zero-emission electric vehicles	16%	First €30,000 of catalogue value
Zero-emission (above €30,000)	22%	Remaining catalogue value above €30,000
Hydrogen vehicles	16%	First €30,000 of catalogue value
Solar-powered vehicles	16%	First €30,000 of catalogue value

How the Electric Vehicle Rate Works

The reduced 16% rate only applies to the first €30,000 of catalogue value. Above that, the regular 22% applies.

Example — Electric car with catalogue value of €50,000:

First €30,000 × 16% = €4,800
Remaining €20,000 × 22% = €4,400
Total annual bijtelling: €9,200

Example — Electric car with catalogue value of €25,000:

€25,000 × 16% = €4,000 (entirely within the reduced rate)

Example — Petrol car with catalogue value of €40,000:

€40,000 × 22% = €8,800

Tip

The electric vehicle advantage has been shrinking over the years. Previously, electric cars had a 4% rate with a higher cap. In 2026, the benefit is more modest — but still meaningful, especially for cars under €30,000. If you are choosing a lease car, run the numbers for both electric and conventional options.

How Bijtelling Affects Your Payslip

The bijtelling is spread across 12 months and added to your taxable income (not your gross salary). Here is how it appears on your payslip:

Payslip Line	Example
Bruto salaris	€5,000
Bijtelling auto	+€733 (€8,800 / 12)
Fiscaal loon	€5,733
Loonheffing (calculated on €5,733)	−€1,818
Bijtelling correction	−€733
Netto salaris	€3,182

The key point: the bijtelling increases the loonheffing you pay but is then subtracted again before net pay. You never receive the bijtelling as cash — it only affects your tax calculation.

The Actual Cost to You

The bijtelling costs you tax at your marginal rate. For a €40,000 petrol car:

Your Marginal Tax Rate	Annual Bijtelling	Annual Tax Cost
36.97%	€8,800	€3,253
49.50%	€8,800	€4,356

This means a company car with a €40,000 catalogue value costs you between €271 and €363 per month in additional tax — but you get a car including insurance, maintenance, and road tax.

Warning

Some people assume the bijtelling means you "pay 22% of the car's value." This is incorrect. You pay tax on 22% of the car's value. The actual cost depends on your tax bracket. At the highest bracket, you pay 49.50% × 22% = approximately 10.9% of the car's value per year in additional tax.

The 500 km Rule: Avoiding Bijtelling

If you use the company car for fewer than 500 private kilometers per year, you can request a "Verklaring geen privégebruik auto" (declaration of no private use) from the Belastingdienst. With this declaration, your employer does not apply the bijtelling.

What Counts as Private Use?

Journey Type	Classification
Commuting (home to office)	Not private — commuting is considered work-related
Driving to a client or meeting	Not private — business travel
Weekend trip to the coast	Private
Shopping or errands	Private
Driving to the gym	Private
Holiday travel	Private
Picking up children from school	Private

How to Stay Under 500 km

If you want to keep the declaration:

Keep a detailed kilometer log (rittenadministratie) for every trip — date, starting km, ending km, destination, and purpose
The log must cover the entire calendar year
The Belastingdienst can audit your log and cross-reference it with fuel receipts, maintenance records, or parking data
If you exceed 500 private km, you must inform the Belastingdienst and the full bijtelling applies retroactively for that year

Warning

The 500 km threshold is strict. If the Belastingdienst audits your kilometer log and finds you drove 501 private km, the full annual bijtelling applies — not just the excess. The penalty for an incomplete or inaccurate log can be severe (including additional fines). Only apply for this declaration if you are genuinely confident you will stay under 500 km of private use.

The Employee Contribution (Eigen Bijdrage)

Your employer can require you to pay a monthly contribution for private use of the car. This eigen bijdrage (employee contribution) reduces the bijtelling:

Example — €8,800 annual bijtelling, €150/month employee contribution:

Annual employee contribution: €150 × 12 = €1,800
Reduced bijtelling: €8,800 − €1,800 = €7,000
Tax saved: €1,800 × marginal rate (e.g., 49.50% = €891)

The employee contribution cannot reduce the bijtelling below zero. Any excess contribution is lost (no refund or deduction).

Choosing a Lease Car: Tax Considerations

When your employer offers a lease car budget, the bijtelling should be a factor in your decision:

	Petrol Car €40,000	Electric Car €45,000	Electric Car €28,000
Catalogue value	—	—	—
Annual bijtelling	—	—	—
Monthly tax cost (49.50%)	—	—	—
Fuel/charging cost	—	—	—

The electric car under €30,000 has a clear tax advantage. The premium electric car (€45,000) is only marginally cheaper in bijtelling than the petrol car, but saves on fuel/charging costs.

Bijtelling and the 30% Ruling

If you have the 30% ruling, the bijtelling is calculated on your full salary (before the 30% exemption). However, the bijtelling is part of your taxable income, so the 30% exemption effectively reduces its tax impact:

Without 30% ruling: bijtelling is taxed at your full marginal rate
With 30% ruling: your overall marginal rate is lower because 30% of salary is exempt, so the bijtelling effectively costs less in tax

Special Situations

Part-Time Employees

The bijtelling is not prorated for part-time work. If you work 3 days per week but have the car available 7 days per week, the full bijtelling applies. The bijtelling is only prorated if you had the car for part of the year (e.g., you received it in July — 6/12 of the annual amount).

Shared Company Cars

If a company car is shared between employees and each employee has restricted access, a lower bijtelling may apply. This is uncommon and requires careful documentation.

Classic and Vintage Cars

The bijtelling for cars older than 15 years is calculated on the current market value, not the original catalogue value. This can result in a lower bijtelling for depreciated vehicles — or a higher one for appreciating classics.

Common Mistakes

Thinking bijtelling means you pay 22% — You pay tax on 22% of the value. The actual cost is 22% × your marginal tax rate.
Ignoring the 500 km rule requirements — If you apply for the exemption, you must maintain a flawless kilometer log every single day. One month of missing data can invalidate the entire declaration.
Choosing a car based on catalogue value alone — The bijtelling is based on the original catalogue value, which may differ significantly from the price you or your employer actually paid (especially for used cars or discounted fleet purchases). Always check the official catalogue value.
Forgetting the employee contribution offset — If you pay an eigen bijdrage, make sure your employer applies it to reduce the bijtelling. Verify this on your payslip.
Assuming electric cars are always cheaper — A €80,000 electric car has a bijtelling of €15,800 (16% on €30,000 + 22% on €50,000). A €35,000 petrol car has a bijtelling of €7,700. Price matters more than the rate.