Bicycle allowance 2025: how does it work?

The bicycle allowance is a kilometre allowance you get when you ride your bicycle to work. The tax administration sets the limit for the tax-free bicycle allowance. Since 1 January 2025, the tax-free bicycle allowance has been 0.36 euros per kilometre. So, a bicycle allowance, what exactly is it?

What is the bicycle allowance?

The bicycle allowance is an allowance paid by employers to employees who travel (part of) their commute by bicycle. The bicycle allowance is untaxed up to a certain amount (0.36 euro per kilometre). In this way, the government wants to encourage employees to cycle to work. 

A bicycle allowance has a real motivating effect on people and makes a difference: find out in ‘Wesley's cycling motivation’. 

How much will the bicycle allowance be in 2025?

The bicycle allowance in 2025 is 0.36 euros per kilometre. In other words, the maximum bicycle allowance per kilometre, legally exempt from taxes and social contributions, is 0.36 euros. 

Employers can always grant a higher amount than the legally exempt amount, but the remaining amount is then taxable as professional income.

Example: If the employer grants a bicycle allowance of 0.20 euros per kilometre, this allowance is completely exempt from taxes. If the employer grants 0.40 euros per kilometre, the first 0.36 euros is exempt from taxes. However, the remaining 0.04 euro is taxable (equivalent to salary).

The bicycle allowance has a ceiling at 3,610 euros

However, there is an annual ceiling on the bicycle allowance. This ceiling is 3,610 euros. Do you get more than the ceiling amount on an annual basis? Then you still pay a tax on your bicycle allowance, even if your employer does not grant more than 0.36 euro per kilometre.

Worried about hitting this ceiling? No need to be. Only individuals who cycle really long distances to work risk incurring taxes on their bicycle allowance. To get to the ceiling amount on an annual basis, you have to cycle about 44 kilometres for your commute 5 days a week. 

Is a bicycle allowance compulsory?

Yes, since May 2023, it is mandatory for employers in the public, private and non-profit sectors to offer a bicycle allowance to employees who regularly cycle to work.

And that's whether it's your own bicycle, a lease bicycle or a company bicycle. By the way, there's no difference whether you ride a snazzy racer, handy cargo bicycle or a fast speed pedelec. The bicycle allowance is granted to any type of bicycle.

So how much bicycle allowance is mandatory? That depends on the CLA (collective labour agreement) you fall under. You can find more detailed info on the mandatory bicycle allowance here.

Can I get a bicycle allowance if I have a company car? 

Unfortunately, there is no clear answer to that question. It's often possible to get a bicycle allowance if you have a company car, but it all depends on what the CLA of your company or sector stipulates in this regard. 

For example, someone who has a company car and works within PC111 may not get the bicycle allowance. Because the CLA doesn't allow a bicycle allowance to be granted to employees with a company car. 

Is a bicycle allowance possible under your CLA? Then it's best to agree with your employer which days or months you will cycle to work. And you'll get a kilometre allowance for those kilometres. However, it's important that you travel regularly by bicycle.

Do I have to declare my bicycle allowance in my taxes?

That depends on how your professional expenses are calculated. Is there a flat-rate calculation for your professional expenses? Then you don't declare your bicycle allowance in your taxes. That's the case for most employees. 

Have you opted to deduct your actual professional expenses on your tax return? Then you are not entitled to the exemption. In that case, you therefore do declare your bicycle allowance in your taxes. 

Is there a minimum distance for the bicycle allowance in 2025?

No, there is no minimum distance you have to ride to get the bicycle allowance. Whether you cycle 1 kilometre to work or 20 kilometres, you are entitled to a bicycle allowance. However, companies can set a minimum distance in their mobility policy. 

Can I get a bicycle allowance if I cycle several round trips a day?

Sometimes, your employer will reimburse you for several round trips per day. For example, suppose you go home for lunch every day, your employer may grant you a bicycle allowance for those extra journeys. 

Can the bicycle allowance also be used for business-related travel?

As an employer, you can also use the bicycle allowance for business-related travel, even if this is with a company bicycle. In that case, the bicycle allowance is 100% deductible, but social charges do apply.

Earn back your leased bicycle with your bicycle allowance

Thanks to the bicycle allowance, a lot of employees see a nice net amount appear on their pay slip each month. Nice catch! Especially for those who have a lease bicycle. Because if you cycle enough kilometres per month, you fully earn back the cost of a (lease) bicycle. 

Suppose you lease a bicycle for €84 net per month. For a whole year, you cycle 20 kilometres a day from home to work. For those 20 kilometres, you will receive a maximum bicycle allowance of 36 cents per kilometre.

210 (days) x 20 (km per day) x 0.36 (cents) = €1,512 per year or €126 per month