Mileage Allowance 2026 in Finland – Rates and Tax-Free Reimbursements

Mileage allowance is one of the most common ways to account for work-related driving in Finland. In 2026, the maximum mileage allowance for using a private car on a business trip is €0.55 per kilometre, down from €0.59 per kilometre in 2025.

For employees, this amount can be reimbursed tax-free by the employer when the conditions set by the Finnish Tax Administration are met. For sole traders, the tax treatment is slightly different: a sole trader cannot pay themselves a tax-free mileage allowance, but may instead be entitled to an additional tax deduction for business use of a privately owned car.

In this guide, we cover:

the mileage allowance rate for 2026
additional mileage allowance increases
daily allowances and other travel expenses
how mileage deductions work for sole traders
practical tips for keeping an accurate mileage log

Mileage allowance in Finland in 2026

The maximum tax-free mileage allowance for an employee using their own car for a qualifying business trip in 2026 is:

€0.55 per kilometre

The allowance applies when a privately owned or privately held vehicle is used for a work-related business trip and the requirements of the Finnish Tax Administration are met.

Change compared with 2025

2025: €0.59/km
2026: €0.55/km

The maximum mileage allowance therefore decreases by four cents per kilometre in 2026.

You can find the official rates in the Finnish Tax Administration’s 2026 decision on tax-exempt travel expense allowances.

Additional mileage allowance increases

The basic mileage allowance can be increased in certain situations.

For example, in 2026:

+€0.04/km for each passenger whose transportation is the employer's responsibility
+€0.09/km when towing a trailer

Other increases may also apply depending on the vehicle and the purpose of the journey.

Daily allowances and other travel reimbursements in 2026

Mileage allowance is only one part of Finland's travel expense rules.

For domestic business travel in 2026, the maximum tax-free amounts are:

Full per diem: €54
Partial per diem: €25
Meal allowance: €13.50

A partial per diem generally applies to qualifying domestic business trips lasting more than six hours, while a full per diem applies when the trip lasts more than ten hours. Other conditions, including distance requirements, also apply.

With Kletta's mileage log and daily allowance feature, sole traders can record business journeys and keep the information needed for tax deductions organised in the same place as their bookkeeping.

When is mileage allowance tax-free?

For employees, mileage allowance can generally be paid tax-free when:

the journey is made for work-related reasons
it qualifies as a business trip for tax purposes
the allowance does not exceed the Finnish Tax Administration's maximum rates
sufficient documentation of the journey is available

Normal commuting between home and a regular workplace is treated differently and does not automatically qualify for tax-free mileage allowance.

Keeping an accurate mileage log is therefore important.

Mileage deductions for sole traders in Finland

The rules are different for sole traders.

A sole trader cannot technically pay themselves a tax-free mileage allowance. Instead, business-related vehicle expenses are taken into account as deductions in the taxation of the business.

If 50% or less of the annual kilometres driven with the vehicle are business-related, the vehicle is generally considered a private asset. In this situation, the entrepreneur may be entitled to an additional deduction for qualifying business kilometres.

The maximum additional deduction can correspond to the tax-free mileage allowance available to employees.

For 2026, this means the relevant maximum rate is €0.55/km, subject to the applicable tax rules.

If more than 50% of the kilometres relate to business use, the vehicle is generally considered part of the business assets, and vehicle expenses are handled differently.

This is why an accurate mileage log is especially important for sole traders.

With Kletta's automated accounting, mileage, expenses, receipts and other bookkeeping information can be managed in one place.

Example: 10,000 km of business driving

Suppose a sole trader drives 10,000 qualifying business kilometres during 2026 using a car that remains part of their private assets.

Based on the 2026 maximum rate:

10,000 km × €0.55 = €5,500

This means the maximum amount used when determining the additional deduction could be €5,500, provided the relevant conditions are met.

However, if some vehicle expenses have already been deducted in the bookkeeping, these expenses can affect the final amount of the additional deduction. The same costs cannot be deducted twice.

Mileage allowance 2026 – key figures

Here are the most important travel expense figures for 2026:

Mileage allowance: €0.55/km
Full per diem: €54
Partial per diem: €25
Meal allowance: €13.50
Additional passenger: +€0.04/km
Trailer: +€0.09/km

Frequently asked questions

Can I use more than one vehicle during the same year?

Yes. You can use different vehicles for business journeys during the year. The important thing is to keep reliable records showing which vehicle was used, how far you drove and the business purpose of each journey.

Is the mileage rate different for electric or hybrid cars?

No. The basic 2026 mileage allowance for a qualifying journey with a privately owned passenger car is €0.55/km regardless of whether the car is petrol, diesel, hybrid or fully electric.

Do sole traders need a mileage log?

A mileage log or another reliable record is essential when claiming deductions for business use of a private vehicle. The Finnish Tax Administration may request the records if necessary.

Does mileage allowance include VAT?

Mileage allowance itself does not contain VAT. For sole traders, the VAT treatment of vehicle expenses depends on the underlying expenses and how the vehicle is used in the business.

How can I make mileage tracking easier?

Instead of keeping a separate spreadsheet or manually calculating every journey at the end of the year, you can record your business travel as you go.

Kletta's driving log helps you keep business journeys organised and connects your mileage information directly with your accounting and tax records.

Make bookkeeping and mileage tracking easier with Kletta

Kletta is an accounting app designed specifically for sole traders in Finland. Manage your bookkeeping, receipts, invoicing, taxes and business mileage in one application.

Try Kletta free for 14 days.