The mileage deduction has been increased for the entire year of 2026. Did you know that?

The Danish Parliament has approved a temporary increase in the commuting deduction, which applies retroactively for the entire 2026 tax year.

The rate for daily commuting between home and work will increase from 2.28 kr. to 3.17 kr. per km.

The increase is in addition to the rates set by the Tax Council in November 2025 and is intended to compensate commuters for rising gasoline and diesel prices. According to the Ministry of Taxation, the change affects approximately 1.1 million Danes.

The Increased Rates for 2026

The commuting deduction is calculated based on the daily distance between your home and your workplace, and you are eligible for it if your daily commute is more than 24 km. The deduction applies regardless of your mode of transportation, so it can also be claimed if you take the train, bus, or bike.

• 0–24 km: no deduction
• 25–120 km: 3.17 DKK per km (previously 2.28 DKK)
• Over 120 km: 1.59 DKK per km (previously 1.14 DKK)
• Outlying municipalities and certain small islands: 3.51 DKK per km (previously 2.53 DKK)

At the same time, the maximum supplement to the transportation deduction for low-income individuals has been temporarily doubled from 15,400 kr. to 30,800 kr. The supplement is gradually phased out as income increases.

The increase applies only to the 2026 tax year.

How much is that in kroner?

The commuting deduction is a tax deduction with a tax value of approximately 25%. If you have a commuting deduction of 40,000 kr., this corresponds to about 10,000 kr. less in taxes. The Ministry of Taxation estimates that the average commuter will have approximately 2,300 kr. more to spend in 2026—and the longer your commute, the greater the benefit.

Important: The deduction is not applied automatically

The commuting deduction is not reported automatically. You must report your commuting days yourself, and you have two options:

• Correct your estimated tax return now. That way, the increased deduction will be factored into your withholding rate for the rest of the year, and you’ll see the difference on your pay stub right away.
• Wait until your annual tax return. If you don't file until spring 2027, you'll instead receive the amount as a tax refund.

If you have already claimed the mileage deduction for 2026, you do not need to change the number of kilometers or workdays—only the rate has been increased.

Compensation for employees remains unchanged

If you are an employer, please note that the legislative change applies only to commuters’ transportation deductions. The rates for tax-free mileage allowances when employees use their own cars for business purposes have not changed and remain as follows:

• The first 20,000 km per year: 3.94 kr. per km
• Mileage over 20,000 km per year: 2.28 DKK per km
• Your own bicycle, moped, or electric scooter: 0.64 kr. per km

Keep in mind that the tax exemption requires that you, as the employer, keep records of the trips, including the date, destination, purpose, and number of kilometers. If the documentation is incomplete, the reimbursement may become taxable for the employee.

The bridge toll deductions for the Great Belt and the Øresund are also unaffected by the change.