The new indexed tax amounts for 2026

As an employer, you may be eager to know the new indexed tax amounts for 2026. Here is an overview of the main tax amounts from HR practice that will apply in 2026 (assessment year 2027).

This AI-generated translation may contain errors and should not be considerd legal advice. For accurate info, refer to the Dutch or French version or consult your Securex Legal Advisor.

Certain amounts may still be modified in the course of 2026, taking into account the draft laws currently being discussed in the Chamber, which would already apply from the assessment year 2027.

What are the most interesting amounts for human resources management?

Description	Indexed amounts (€ or coefficients)
Minimum amount of the benefit in kind resulting from the provision of a car	1,690
Indexation coefficient of the benefit in kind resulting from the provision of a residence	2.30
Exemption from the reimbursement of commuting costs using a means of transport other than a bicycle, public transport, or employer-organised collective transport	500
Maximum exempt reimbursement from the employer for commuting by bicycle	0.37
Maximum exempt amount for non-recurrent performance-related benefits (pay bonus)	3,700

Minimum amount of the benefit in kind for a car

The provision of a company car for private use generates a taxable benefit in kind (VAA) for the beneficiary.

This benefit is calculated on a flat-rate basis using the following formula:

‘catalogue value × 6/7 × [ 5.5 + (CO2 emissions of the car - reference CO2 emissions) × 0.1 ] / 100’.

The benefit in kind calculated must, however, never be less than 820 euros per year (base amount that is indexed each year). For the income year 2026, assessment year 2027, this amount is 1,690 euros per year.

Indexation coefficient of the benefit in kind for a residence

Just like for the private use of a company car there is a legal formula for estimating the flat-rate value of a free residence or free apartment.

The flat-rate formula is indexed annually. The flat-rate value of a free residence or free apartment is calculated using one of these two formulas:

Type of residence	Benefit in kind on an annual basis
Unfurnished:	Indexed cadastral income × 100/60 × 2
Furnished:	Indexed cadastral income × 100/60 × 2 × 5/3

The indexed cadastral income is obtained by multiplying the cadastral income by the so-called indexation coefficient. This coefficient is 2.30 in 2026. In 2025, the coefficient was 2.2446.

Reimbursement for commuting costs:

When you pay a contribution towards the commuting costs of your employees, your contribution is generally considered taxable income by the tax authorities. However, under certain conditions, the law provides for a tax exemption.

The legislator grants a tax exemption of 500 euros per year (indexed amount for 2026) to employees who choose the flat-rate deduction of professional expenses in their tax return and who use a means of transport other than a bicycle, public transport, or employer-organised collective transport.

The exemption only applies to employees in paid employment and not to company managers (self-employed).

Moreover, it does not matter whether the employer bears these costs directly or reimburses them to the employee.

Exempt bicycle reimbursement

The use of a bicycle for commuting is encouraged by a fiscal measure in the form of a exemption for bicycle reimbursements.

From January 1, 2026, the fiscal and social exemption for bicycle reimbursements will be increased to 0.37 euros per kilometre. The government aims to promote the use of bicycles in the context of commuting. However, a yearly maximum of 3,700 euros (amount for 2026) will be introduced.

Maximum exempt amount for the pay bonus

For the pay bonus, officially termed non-recurrent performance-related benefits, a social and fiscal preferential treatment applies, provided that a maximum amount is not exceeded. This concerns the pay bonus of collective labour agreement no. 90. In 2026, the social threshold amount of the pay bonus is 4,255 euros per employee.

The fiscal maximum amount is equal to the social maximum amount minus the solidarity contribution of 13.07% borne by the employee, which is 3,701 euros per employee.

Compliance with these limits will be checked during the year in which the pay bonus is paid, regardless of the year in which the plan was established.