Deduct the maintenance & repair costs of your car

The costs of maintaining and/or repairing your company car are tax-deductible to the same extent as your car is. If your car is 70% deductible, the same principle applies to maintenance and repair costs. It’s that simple. 😉

Besides maintenance and repair costs, the same goes for other costs related to your car or company car:

• Car accessories
• Car insurance
• Fuel or electricity for charging
• Vehicle registration tax (BIV)
• The interest on your car loan

How do you calculate the tax deductibility of your car?

The extent to which your company car is tax-deductible is, for cars bought before 2026, calculated using the gram formula. This formula determines the deduction rate based on your car’s CO2 emissions.

120%- (0.5% x [coefficient] x CO2 )

In addition, to know the deductible part of your car and car expenses, you also need to take into account the professional use of your car.

An example: at the beginning of 2023 you bought a hybrid car and, according to the gram formula, your car is tax-deductible at a maximum of 95%. You are self-employed as your main occupation and use your car 80% of the time for professional purposes. You can then deduct your company car and all related car expenses, including repairs and maintenance, at 76% (80% of 95%).

Do you use the car 100% of the time professionally? Then the deduction rate is 95%.

Are you self-employed in a secondary occupation and do you only use the car 50% of the time for professional purposes? Then you can book 47% of the costs as business expenses (50% of 95%).

⚠️ Careful: did you buy or lease your car between 1 July 2023 and 31 December 2025? Then the gram formula applies with a maximum of 50% this year (2026) and 25% in 2027. Fossil-fuel cars bought in 2026 are no longer deductible, while electric cars remain 100% deductible (until 2027).

You can read more about deducting your car or company car here.