Mileage allowance and travel cost deductions in Austria in 2026

Austria has two separate systems for travel costs. Business trips made with your own car or bicycle may qualify for a mileage allowance, while the cost of travelling between home and work is covered by commuting tax credits and, under certain conditions, the Pendlerpauschale and Pendlereuro.

In brief:

• The mileage allowance is €0.50 per kilometre for passenger cars and €0.25 per kilometre for bicycles and motorcycles, applicable since 1 July 2025.
• For passenger cars, the tax-free allowance can be paid for a maximum of 30,000 kilometres per year.
• The Verkehrsabsetzbetrag is €496 in 2026 and is automatically taken into account by the employer.
• From 2026, the Pendlereuro is calculated as the one-way distance in kilometres multiplied by six per year.
• A tax assessment for 2026 can be submitted until the end of December 2031.

What is the mileage allowance and when is it tax-free?

The mileage allowance (amtliches Kilometergeld) is a flat-rate payment covering the costs of using your own vehicle for a business trip (Dienstreise). It does not apply to the daily journey between your home and workplace.

An employer may pay the allowance tax-free if:

• the journey is genuinely a business trip;
• the maximum applicable rate is not exceeded;
• you pay the costs of maintaining the vehicle yourself; and
• there is a journey log (Fahrtenbuch) or other evidence of the business kilometres.

The flat rate covers, among other things, depreciation, fuel and oil, repairs, winter tyres, parking and toll charges in Austria and abroad, all insurance, vehicle-club membership and loan or leasing instalments. These costs cannot therefore be claimed separately.

How much is the mileage allowance in 2026?

The following amounts apply per kilometre travelled:

• Passenger car: €0.42 until 2024; €0.50 from 1 January 2025 to 30 June 2025; €0.50 from 1 July 2025.
• Motorcycle or moped: €0.24 until 2024; €0.50 from 1 January 2025 to 30 June 2025; €0.25 from 1 July 2025.
• Passenger (Mitfahrer): €0.05 until 2024; €0.15 from 1 January 2025 to 30 June 2025; €0.15 from 1 July 2025.
• Bicycle: €0.38 until 2024; €0.50 from 1 January 2025 to 30 June 2025; €0.25 from 1 July 2025.

The amounts are calculated for every kilometre travelled. Tax-free payments can also be made for bicycle journeys and passengers.

What if your employer pays less?

If your employer pays nothing or pays less than the maximum mileage allowance for business trips, you can claim the difference in your annual tax assessment (Arbeitnehmerveranlagung) as a work-related expense (Werbungskosten).

If a journey log proves that your actual costs were higher than the flat-rate allowance, you may also claim the difference from the tax office (Finanzamt). However, anyone who has used the maximum rate cannot claim higher costs.

For business trips by bicycle, the deduction is €0.25 per kilometre, up to €750 per year, corresponding to 3,000 kilometres.

Commuting: the Verkehrsabsetzbetrag

The cost of travelling between home and work is generally covered by the flat-rate Verkehrsabsetzbetrag. The employer takes this into account automatically.

• Verkehrsabsetzbetrag: €496 in 2026, with no income limit.
• Increased amount with the Pendlerpauschale: €853, gradually reducing between €15,069 and €16,056.
• Supplement (Zuschlag): €804, gradually reducing between €19,761 and €30,259.

The supplement is taken into account in the annual tax assessment.

Small and large Pendlerpauschale

People who live farther from work or cannot reasonably use public transport may also claim the Pendlerpauschale. It reduces the taxable income, so the actual saving depends on your personal tax rate.

Small Pendlerpauschale

The small allowance applies when public transport is possible and reasonably expected, and the distance is at least 20 kilometres:

• Between 20 and 40 kilometres: €58 per month.
• More than 40 up to 60 kilometres: €113 per month.
• More than 60 kilometres: €168 per month.

Large Pendlerpauschale

The large allowance applies when public transport is not possible or cannot reasonably be expected, and the distance is at least 2 kilometres:

• Between 2 and 20 kilometres: €31 per month.
• More than 20 up to 40 kilometres: €123 per month.
• More than 40 up to 60 kilometres: €214 per month.
• More than 60 kilometres: €306 per month.

Public transport may, for example, not be reasonably expected if no service operates for at least half of the journey, if it does not operate at the required time, such as during a night shift, or if the one-way journey takes more than 120 minutes. It is always considered reasonable for journeys of up to 60 minutes. Between 60 and 120 minutes, the threshold is 60 minutes plus one minute per kilometre.

The full allowance is available after at least 11 commuting days per month. For 8 to 10 days, two-thirds applies; for 4 to 7 days, one-third applies.

If you can use a company car for commuting, you are not entitled to the Pendlerpauschale.

Pendlereuro

Anyone entitled to the Pendlerpauschale is also entitled to the Pendlereuro. This is deducted directly from the calculated tax.

For a one-way distance of 27 kilometres, the Pendlereuro is €162 per year from 2026. Until 2025, it was €54.

Where and when can you apply?

The distance and whether public transport can reasonably be expected are determined by the Pendlerrechner.

You can apply in two ways:

1. During the year through your employer: submit the L34 EDV form together with a printout of the calculator result.
2. After the year has ended: claim it in your annual tax assessment using the L1 or E1 form and the L34a supplement.

If your employer calculated the allowance incorrectly, submitting an annual tax assessment is mandatory.

Frequently asked questions

Do I receive mileage allowance for my daily commute?

No. The mileage allowance applies to business trips. Commuting is covered by the Verkehrsabsetzbetrag and the Pendlerpauschale.

Can part-time employees claim the Pendlerpauschale?

Yes. For one or two commuting days per week, one-third or two-thirds of the allowance applies respectively.

What happens during holiday or sick leave?

If the absence lasts for an entire assessment period, the figures from the previous period are used. No allowance is available during a full year of sick leave or Karenz.

How long can I claim the amount for 2026?

You can submit the tax assessment for the 2026 tax year until the end of December 2031.

Practical steps

1. Separate business trips from ordinary journeys between home and work.
2. Keep a Fahrtenbuch or other evidence for business kilometres.
3. Check the applicable mileage rate and whether your employer has paid the full amount.
4. Use the Pendlerrechner to determine your commuting distance and the availability of public transport.
5. Submit the L34 EDV form to your employer during the year, or claim the allowance after year-end with the L1 or E1 form and the L34a supplement.
6. If the employer paid too little or used an incorrect amount, include the matter in your Arbeitnehmerveranlagung.

Source: oesterreich.gv.at

This article is based on publicly available information and does not constitute professional advice. Use the information at your own responsibility and seek advice from a qualified professional if necessary.