Transportation allowance and mileage reimbursement 2024

The Tax Council has just announced the new rates for commuting allowance and tax-free mileage allowance for 2024 and they will increase again in the coming year

The Tax Council has set the updated rates for deductions for transportation expenses between home and work and reimbursement for business driving in your own car. These rates apply to driving a car, regardless of whether you use public transportation or other means of transport.

The Tax Council bases their calculations for 2024 on a gasoline price of 15.94 kr./l. In addition to this, they take into account costs such as servicing, replacement of wearing parts, tires, additional rust protection and insurance costs.

The mileage deduction for 2024 is increased by DKK 0.4 per kilometer for distances between 25 and 120 km, bringing the rate to DKK 2.23 per km. For kilometers driven beyond 120 km, the rate increases by 0.2 DKK per kilometer, resulting in a rate of 1.12 DKK per kilometer driven.

The tax-free transportation allowance for driving your own car increases by DKK 0.6 per km to DKK 3.79 per km for the first 20,000 km. For kilometers driven beyond this, the rate increases by DKK 0.4 to DKK 2.23 per km, applicable for kilometers driven over 20,000 km.

Employers can still pay tax-free transportation allowances to employees who drive their own car for business purposes, provided that this is controlled. The rules for this remain unchanged.

Transportation allowance 2024

Tax-free mileage allowance