Work out compensation for using a personal car for work and compare it against the annual tax-free limit.
| Step | Formula |
|---|---|
| Monthly compensation | km/month × rate €/km |
| Annual compensation | monthly compensation × 12 |
| Tax-free limit/year | 64 × base social benefit (2026 base = €74, limit = €4,736) |
| Excess | annual compensation − limit (if > 0, taxable as income) |
Important: there is no government-fixed €/km rate for private-sector employees (unlike company cars) — the company sets the compensation amount, and it must be economically justified. However, the total annual tax-free compensation cannot exceed 64 base social benefit amounts. Check the current base amount and rule on the tax authority's website — figures may change.
It's a government-set base figure used to calculate various social benefits and tax thresholds. For 2026 it is €74.
The rate should reflect the real cost of using the car per kilometer (fuel, depreciation, insurance) — see the total cost calculator.
The excess (above 64 base social benefit amounts per year) becomes taxable as regular income, subject to income tax and social contributions.
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