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Mileage allowance 2026

Calculate your tax-free mileage allowance with the new Finnish Tax Administration rates.

Calculate your tax-free mileage allowance with 2026 Finnish Tax Administration rates.
km/mo

Estimate your monthly business kilometres. Switch to yearly if needed.

08

Excluding driver. +€0.04/km per passenger.

Mileage allowance / kk
440 €
Total rate: 0,55 €/km
Annual equivalent
5 280 €

The calculation is indicative. The actual deductible amount depends on the nature of the business travel and any employer-paid compensation.

II

What is mileage allowance?

Mileage allowance (kilometrikorvaus) is a tax-free compensation for business travel using your own car. The Finnish Tax Administration sets annual maximum rates. In 2026, the base rate has decreased from €0.59 to €0.55/km.

Passenger car 2026current
Base rate€0.55/km
Passenger supplement+€0.04/person/km
Trailer supplement+€0.09/km
Example: 10,000 km, 1 extra passenger€5,900/yr

The allowance is tax-free up to Finnish Tax Administration maximum amounts.

Business travel vs. commuting
  • Business travel = travel between work locations for work purposes → mileage allowance
  • Commuting = travel between home and workplace → commuting expense deduction
  • Commuting deduction has a €900 excess, capped at €7,000/yr
  • Employers can pay tax-free up to the statutory maximum amounts
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When can you claim mileage allowance?

Mileage allowance is paid for business travel, not commuting. Business travel includes:

Business travelmileage allowance
  • Client visits from the office
  • Travel between work locations
  • Meeting trips to other cities
  • Any work-required travel
Not business travel
  • Commuting between home and workplace
  • Private trips
  • Holiday travel
  • Commuting by public transport
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Frequently asked questions

How much is mileage allowance for 10,000 km? +
10,000 km × €0.55/km = €5,500 per year. Each additional passenger adds €400 (€0.04 × 10,000 km). For example, with one extra passenger, the allowance is €5,900.
How do I keep a mileage log? +
Record for each business trip: date, origin and destination, distance (km), purpose of the trip, and passengers. The Tax Administration may request the log for audit. Keep it up to date — retrospective estimates are not accepted.
Can I claim mileage allowance with a company car? +
No. Mileage allowance applies only to your own car. For business trips with a company car, the employer covers fuel costs, but no mileage allowance is paid.
What other travel expenses can I deduct? +
For commuting (home–workplace), you can deduct expenses based on the cheapest mode of transport, above the €900 excess, capped at €7,000/yr. You can also claim daily allowances (domestic full-day €54/day, partial-day €25/day in 2026) and meal compensation of €13.50.
Tip: combine wisely If you drive a lot for business, mileage allowance is your best option — it is tax-free with no excess. Keep a mileage log and claim it either from your employer or directly on your tax return. We can help you determine the right approach.

Source: Finnish Tax Administration — Mileage allowance

Disclaimer

This calculation is indicative and does not replace your tax card, employer guidance, or professional review. Based on the 2026 Finnish Tax Administration confirmed mileage allowance rates (vero.fi).

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