The company car in 2026: what it costs you, what it's worth and when the mobility budget is better

Belgium has more than 700,000 company cars, and in 2026 the choice for the employee is simpler than ever: electric, or nothing. Since the reform of car taxation, fossil fuel company cars have become almost unaffordable for employers. But what does a company car mean for you as an employee, in euros? And when is the mobility budget the better choice?

How the taxation changed

For cars ordered since July 2023, the tax deductibility for the employer of petrol, diesel and hybrid cars falls every year, to zero in 2028. Electric cars remain fully deductible if ordered before 2027 (after that, this too gradually decreases, to 67.5% from 2031). As a result, the share of electric cars in new company fleets has risen to well over half. The company car index on ikzoek.jobs tracks how many job vacancies offer a car, by sector and by region.

What the car costs you: the benefit in kind

You don't pay rent for the car, but you do pay tax on a notional benefit, the benefit in kind (BIK). The formula: catalogue value × a CO2 percentage × 6/7 × an age coefficient. For an electric car, the minimum percentage of 4% applies, while for a petrol car it rises to 18% and more.

An electric company car therefore costs you about 65 to 90 euros per month in extra tax. On top of that, there is sometimes a personal contribution for a more expensive model than the standard one; that contribution is deducted from the BIK.

What the car is worth

Compare that with what owning a car costs: for a comparable electric mid-range car, about 650 to 850 euros per month in depreciation, insurance, maintenance, tyres and road tax, plus energy. With a charging card for home and on the road, the employer covers that too. Net, a company car is worth about 6,000 to 8,000 euros per year to anyone who needs a car anyway, which corresponds to 9,000 to 12,000 euros in gross salary. That is the largest fringe benefit that exists.

Do keep three things in mind: the car disappears if you're dismissed or on long-term sick leave (read the car policy), it doesn't count towards your pension, and anyone who can't charge at home loses part of the benefit to expensive fast chargers (unless the employer pays for those).

The mobility budget

Anyone entitled to a company car can exchange it for a mobility budget: the total annual cost of the car to the employer (the TCO, usually 8,000 to 14,000 euros), to be spent across three pillars:

1. An environmentally friendly car (electric, smaller or cheaper), with the remainder going to pillars 2 and 3.
2. Sustainable mobility and housing: bicycle or speed pedelec (purchase or leasing), public transport, shared cars, and notably: the rent or mortgage repayment for anyone living within 10 kilometres of work. Everything in this pillar is completely free of tax and social security contributions.
3. The balance in cash, taxed with a special contribution of 38.07%, but without payroll withholding tax.

Anyone who lives in the city, can cycle to work and has a budget of 10,000 euros could, for example, lease a bike (1,500 euros), take out a train season ticket (1,000 euros) and have 7,500 euros of mortgage repayments paid, all net. That is a net benefit of 10,000 euros per year, whereas a company car you barely use delivers much less.

Who is best off with which option?

• Many kilometres, no alternative to the car, a family: the electric company car with a charging card. Make sure you have a charging point at home (often paid for by the employer).
• Within 10 kilometres of work, or good train connections: the mobility budget, with housing costs in pillar 2 as a major advantage.
• Second car in the household: often unnecessary; the budget or a higher gross salary delivers more.
• Not sure: ask the employer for the TCO of the car on offer; that is the amount you would receive in the budget. Compare that with what the car is actually worth to you net.

Questions to ask before you sign

1. Which models and what budget? What does a personal contribution cost for an upgrade?
2. Is there a charging card, and is home charging reimbursed, and at what rate?
3. What happens to the car in case of illness, parental leave or notice of termination?
4. Is a mobility budget possible, and how is the TCO calculated?
5. What is the gross salary alternative if I turn down the car?

On ikzoek.jobs you can filter job vacancies by company car as a benefit. Then compare the full package with the salary ranges in the job vacancies with salary listed: a car worth 800 euros per month is only a benefit if you would actually buy it yourself.