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Mobility budget, taxation, amounts... 2026 is well underway, and the changes are real. We listed the most important mobility updates so you know exactly where you stand today.
1. Mobility budget
A mandatory mobility budget for all companies offering a car in their salary packages is one of the most significant proposals currently on the table. The draft legislation is pending final approval in parliament. If adopted, companies would have until 1 January 2027 to comply, and until 1 January 2028 for smaller companies with 15 to 50 employees. We are monitoring the status closely. Read our current guidance on how to be tax-ready on time.
Budget limits as of 1 January 2026:
A budget below €3,233 must be adjusted to the current minimum. A budget above €17,244 must be lowered to the current maximum. A TCO previously capped at €16,875 can now potentially be raised to €17,244.
Note: Make sure that none of your employees has a mobility budget higher than 1/5 of their total gross salary on 1 January.
Pillar 1 in 2026: what's still allowed?
From 1 January 2026, only zero-emission cars (fully electric or hydrogen) ordered from that date onward are eligible under Pillar 1. However, plug-in hybrids and other low-emission cars that meet the eco criteria (CO2 < 95g/km, minimum battery capacity, etc.) can still qualify under Pillar 1 in 2026, provided they were ordered before 1 January 2026.
For Pillar 2, combustion engine and hybrid cars are no longer allowed as a rental or shared car, regardless of order date.
2. Taxation & company cars
Tax Deductibility in 2026:
- Electric and zero-emission vehicles: Still 100% tax-deductible in 2026 for cars purchased or leased before 1 January 2027.
- Non-zero-emission vehicles: Cars with CO2 emissions (including fossil fuel cars and many plug-in hybrids) ordered from 1 January 2026 onward have no tax deduction right at all.
- Hybrid vehicles: Plug-in hybrids ordered after 1 January 2026 largely lose deductibility (except transitional cases), and fuel costs for hybrids become fully non-deductible. Electricity costs for charging remain deductible in line with electric cars.
- Fossil and hybrid cars ordered between 01/07/2023 and 31/12/2025 continue on the old transitional deductibility scale:
- 2025 (tax year 2026): 75%
- 2026 (tax year 2027): 50%
- 2027: 25%
- 2028: 0%
CO2 Solidarity Contribution in 2026:
The solidarity factor rises from 2.75 to 4.00, further widening the gap between zero-emission and combustion engine vehicles.
BIK in 2026:
- From 1 January 2026, new Benefit-in-Kind (BIK) rates apply, including the introduction of an A1 category for zero-emission vehicles.
- The BIK for “false hybrids” is calculated not based on the CO2 emission of the vehicle itself, but based on the emission of a matching vehicle equipped with an engine using exclusively the same fuel. If no matching vehicle exists, the CO2 emission value must be multiplied by 2.5.
The European Commission has concluded that the stated emissions of plug-in hybrids do not reflect real-world usage. Plug-in hybrids often emit up to 3.5 times more CO2 than claimed. New reporting rules via the Euro 6e-bis Standard raise the CO2 value of plug-in hybrids, leading to higher BIKs, higher CO2 contributions, and reduced tax deductibility. Choosing a plug-in hybrid today comes with a growing financial risk for both employer and employee.
3. Car taxes
There is still no final, uniform national tax on electric cars in Flanders or at the national level. Plans remain under discussion, potentially based on power, weight, or price, but no final rules have been confirmed for 2026.
Discussions at regional level around new EV taxation continue, but no finalized formula exists yet.
4. Reimbursement of home charging
Circular 2024/C/77 clarifies the tax treatment of reimbursed electricity costs for charging a company car at home. Employers can reimburse based on actual electricity costs or via a fixed rate per kWh set quarterly by CREG. No additional BIK applies if the refund follows these rules.
Higher reimbursements than the applicable rates are not allowed. Employers may apply the lowest CREG rate across the company for simplification purposes.
5. Office chargers
Belgium introduced the obligation to install charging stations in existing non-residential buildings. The obligation depends on the region:
6. Public transportation
Rail service increases by 2% in 2026, a total increase of 5% compared to 2023. Key improvements include:
- More trains in service in the evening
- Reinforced IC connections at weekends
- Expanded suburban network around Brussels, Antwerp, Ghent and Charleroi
- S4: Aalst – Brussels-Luxembourg every 30 minutes
- S7: Hal – Vilvoorde
- S3: Denderleeuw – Geraardsbergen
7. Allowances
Business km reimbursement (private car):
Employers must verify whether their sectoral Joint Committee applies quarterly or annual indexation. Once a system is chosen, it must be applied consistently.
Bicycle allowance:
- Max. tax-free rate: €0.37/km
- Yearly ceiling: €3,700
- Under CAO 164: €0.30/km from 1 January 2026, max. 40 km/day, same annual ceiling of €3,700
- Amounts exceeding these limits are subject to social security contributions and taxation.
Forfait allowance (scooter, on foot, private car):
- Up to €500/year tax-free, subject to applicable fiscal and sectoral conditions.
Why you shouldn't wait
The direction is clear: Belgium is accelerating the shift to zero-emission mobility. Every year of inaction means higher costs, more complexity, and fewer options. Whether you manage a fleet of 5 or 500 cars, the decisions you make today on car orders, mobility policies, and employee packages will directly impact your costs and compliance in the years ahead.
What makes sense for your situation?
- You offer company cars but haven't introduced the mobility budget yet → Start with our step-by-step guide
- You already have a mobility budget but aren't sure if your setup is still compliant → Download our free templates
- You want to calculate the exact cost impact for your fleet → Use our TCO calculator
- You want to talk it through → Book a call with our experts