Tax free-allowances employees

The tax-free travel allowance of € 0,23 remains the same in 2026. Because many people have been working from home since the covid crisis (and this indirectly costs the employee money; more energy consumption, coffee consumption, etc.), a tax-free working from home allowance was introduced. As a result, employers can reimburse a maximum of € 2,40 per day in or part of a day worked in 2025 (€ 2,45 in 2026). The two allowances cannot be paid at the same time; per day you can either opt for payment of the work from home allowance, or payment of the travel allowance.

An employer can provide a tax-free allowance for setting up a home workplace. The employer can reimburse the costs for, for example, an office chair or computer screen via other specific exemptions from the work-related costs scheme.

Tax free scheme

We would like to make you aware of the possibility under the Dutch Wages Tax Act to make a payment on a tax free basis for certain reimbursements which normally would be regarded as taxable income. This year this tax free scheme (‘vrije ruimte’) is maximised at 2% of the total company wages up to € 400.000,– and 1,18% beyond that. If you have not paid any other reimbursements or benefit of any kind to employees including directors which could be regarded as taxable wage, you could still make use of this scheme by paying out a tax free bonus as long as this is usual. A maximum amount of € 2.400 would be regarded as usual.