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Deduct your car

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Car expenses are among the most important business expenses for self-employed people in Belgium. No surprise there: the costs you incur for your car quickly add up, and can therefore significantly lower your taxable income.

Do pay attention, though, because the deductibility of your car will change enormously over the coming years. The government wants to make it less and less attractive for self-employed people to choose a car that runs on fossil fuel.

Deducting car expenses in 2026

For cars bought or leased this year (2026), the following fixed maximum deduction rates apply:

Electric cars: 100% tax-deductible (still until 2027)
Plug-in hybrids: between 75% and 100% deductible (depending on CO₂ emissions)
Light commercial vehicles: 100% tax-deductible
Petrol, diesel and LPG: no longer tax-deductible in 2026

What if you bought your car between 1 July 2023 and 31 December 2025?

For cars bought or leased during this period, the tax deductibility is determined by the gram formula:

120% – (0.5% x [coefficient] x CO2 )

Coefficients:

Diesel	1
Petrol	0.95
Compressed natural gas	0.90

On top of that, these maximum deduction rates also apply:

Cars bought or leased in ’23 and ’24: 100%
2025: 75%
2026: 50%
2027: 25%
2028: 0%

An example: in 2024 you bought a petrol car that you use for business 70% of the time. According to the gram formula, its tax deductibility was 65%. If you depreciate the car over 5 years, the deduction looks like this:

2024: 45% (70% professional use x 65% tax-deductible)
2025: 45%
2026: 45%
2027: 17.5% (the maximum tax deductibility is lowered to 25% this year: 70% professional use x 25%)
2028: 0% (as of this year, your petrol car is no longer tax-deductible)

Which car expenses are tax-deductible?

All costs related to your car:

The interest you pay on a car loan
The lease invoice
Repairs and maintenance
Car wash
Insurance
Vehicle registration tax (BIV)
Electricity for charging and fuel costs

The exception to the rule: light commercial vehicles

A light commercial vehicle or van used entirely for business purposes is deductible up to 100%, for both taxes and VAT.

The maximum deductibility applies to the purchase (or depreciation of the purchase) of the vehicle, but also to all deductible business expenses related to your vehicle: think of accessories, maintenance, insurance, taxes, storage costs for your winter tyres. The list is long ⭐️

Hassan AyedAccountant and Tax Advisor, CEO at A.Fiducia

Expert’s advice ✨

Determining the date of purchase and the regime can be complicated. Here are 2 simple cases to help you know which regime you fall under: When it comes to a used or stock vehicle, it's simple: it's the date of purchase, pure and simple. When you order a new vehicle, case law shows that the date of the order form can be used as the date of purchase. So be careful 😉

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