Rates for 2025: commuting deduction and mileage allowance
In short
Reading time: 2 min- What it sets out:
- The executive order sets the Danish Tax Council's mileage rates for 2025.
- The rates apply to deductions for travel between home and work and to tax-free allowances for business driving.
- Who: The rules apply to employees who drive to and from work or drive for business in their own car or vehicle, and to their employers.
- When: The executive order entered into force on 1 January 2025.
Written by AI from verbatim quotes from the source and checked by code and AI. Dates, tables and the fact box are calculated by fixed rules. Unofficial translation. Always read the original.
For travel between home and work in 2025, the deduction depends on how far you drive. If you drive 0-24 km, there is no deduction. For 25-120 km, the deduction is DKK 2.23 per kilometre. Over 120 km, the deduction is DKK 1.12 per kilometre. Commuters in an outlying municipality calculate driving over 120 km at DKK 2.23 per kilometre, if the conditions in the Danish Income Tax Act are met.
If you drive for business in your own car, your employer may pay a tax-free allowance, if the conditions are met (including checks on the number of kilometres driven). Up to 20,000 km a year, the rate is DKK 3.81 per kilometre. Above 20,000 km a year, the rate is DKK 2.23 per kilometre. For your own bicycle, moped, 45 km/h moped, scooter or electric scooter, the rate is DKK 0.63 per kilometre.
The employer must check the number of kilometres driven for the allowance to be tax-free. A fixed monthly or annual allowance is not tax-free. If more than the rates is paid out, the whole amount is considered personal income, and the employer must report it as wages. However, this does not apply if, at the final calculation, the employer only treats the amount that exceeds the rate as wages for A-tax and labour market contributions. If the employer has provided a company car, a tax-free allowance can, as a general rule, not be paid out.
Sources and original
Official title (in Danish)Bekendtgørelse om Skatterådets satser for 2025 vedrørende fradrag for befordring mellem hjem og arbejdsplads og udbetaling af skattefri godtgørelse for erhvervsmæssig befordring
Read the official text (in Danish) →
Source: Retsinformation.dk
Translated from Danish · The Danish version and the original source apply.
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- Issued · 19 November 2024
- Published in the Danish Law Gazette (Lovtidende) · 22 November 2024
- In force · 1 January 2025