Finnish kilometre allowance 2026: rates, supplements and calculator

The Finnish Tax Administration has set the 2026 tax-free kilometre allowance at 0.55 euros per kilometre for a private car, four cents below 2025. Here are all the figures in one table, the supplements, and what they mean for employees and sole traders.

Updated 15 October 2026

2026 kilometre allowance table

Figures are from the Tax Administration's decision on tax-exempt travel allowances for 2026 (VH/6575/00.01.00/2025, issued 7 November 2025, in force from 1 January 2026).

Supplements to the car rate

What the figure means for you

Employees

An employer can reimburse work trips in your own car at 0.55 €/km tax-free, provided the trips are recorded on an expense claim or in a mileage log. The allowance is not taxable income and is not reported on your tax return. Commuting between home and the workplace is not a work trip; it is claimed separately as a travel deduction on your own return, under different rules and with an own-liability threshold.

Sole traders (toiminimi)

A sole trader cannot pay itself a tax-free allowance. Instead, business trips in a car that belongs to your private assets earn an additional deduction(lisävähennys) at the same 0.55 €/km. The car counts as a private asset when at most half of the year's kilometres are business trips. Above that it belongs to the business, its actual costs go through the books, and the kilometre rate is not used.

The deduction is per kilometre, so 12,000 business km a year means a 6,600 € deduction from profit. Get the exact figure for your own kilometres from the mileage deduction calculator.

Limited-company owners

A limited company can pay its owner-manager the allowance just like any employee, tax-free, as long as the expense claim and mileage log are in order.

No log, no figure

Both the tax-free allowance and the sole trader's deduction require trips to be recorded reliably. The Tax Administration expects at least the date and time, start and end points, distance, purpose and driver for every trip, plus odometer readings. The full list and the common mistakes are in Mileage log requirements: what Vero wants to see.

FAQ

Why did the allowance go down in 2026?

The Tax Administration sets the amount each year from the motoring-cost index calculated by the Office for the Government as Employer. Lower fuel and vehicle costs during 2025 pulled the 2026 figure down by four cents.

Is there an allowance for bicycles or e-bikes?

Employees have a separate, small bicycle allowance. A sole trader deducts bicycle and e-bike costs on an actual-cost basis, not per kilometre.

I drive both my own car and the company van. How do I log that?

Log trips per vehicle. Trips in the private car earn the additional deduction; the company van's costs go through the books. RouteLog keeps vehicles apart and applies the right basis to each.

Sources: Tax Administration decision on tax-exempt travel allowances for 2026 (in Finnish), Vero.fi: Vehicle costs for sole traders (in Finnish).

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RouteLog detects trips with your phone’s GPS, asks for the purpose with one tap and produces a Vero-compliant report for your accountant. The first 15 trips are free.

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General information, not tax advice. Verify current figures at vero.fi or ask your accountant.