Mileage rate for business journeys
An employer in Denmark can reimburse employees for using a personal vehicle for business journeys. An example of a business journey is driving to a client’s office for a client visit.
There are maximum mileage allowances that employers can reimburse tax free.
The following rates apply:
| First 20.000 km of the year | Above 20.000 km within the year | ||
|---|---|---|---|
| Car or motorcycle | 2025 | DKK 3,81 per km | DKK 2,23 per km |
| 2024 | DKK 3,79 per km | DKK 2,23 per km |
| Bike or scooter | 2025 | DKK 0,63 per km |
| 2024 | DKK 0,62 per km |
You can pay your employees more than these maximum amounts, however, the excess will be considered taxable income. If you pay less than these amounts, reimbursement is tax-free.
Learn how you can apply these mileage rates in your Rydoo account here.
Mileage rate for commute
An employee can be entitled to a deduction for transport between home and work. This deduction is only applicable to the days the employee travels to and from work. All means of transportation are accepted, including cards, buses or bikes.
An employee is entitled to this deduction if the following requirements are fulfilled:
- The distance between home and work should be more than 24 km roundtrip. That means that it should be at least 12 km one-way;
- Transport is not covered by the employer or there is no company car available to the employee;
- The employee is not an unpaid intern.
These rates apply:
| Transport per day | Deduction per km per day for 2024 + 2025 |
|---|---|
| 0-24 km | No deduction |
| 25-120 km | DKK 2,23 (DKK 2,27 in peripheral municipalities) |
| More than 120 km | DKK 1,12 (DKK 2,23 in peripheral municipalities) |
The rates that applied in 2024 remain the same for 2025.
There are also deduction rates when crossing toll bridges. You can find these deduction rates and more information on the deduction for transport between home and work in general on the Danish Customs and Tax Administration’s website.