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 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.
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.
The basic mileage allowance can be increased in certain situations.
For example, in 2026:
Other increases may also apply depending on the vehicle and the purpose of the journey.
Mileage allowance is only one part of Finland's travel expense rules.
For domestic business travel in 2026, the maximum tax-free amounts are:
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.
For employees, mileage allowance can generally be paid tax-free when:
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.
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.
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.
Here are the most important travel expense figures for 2026:
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.
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.
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.
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.
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.
Kletta is an accounting app designed specifically for sole traders in Finland. Manage your bookkeeping, receipts, invoicing, taxes and business mileage in one application.