The rules for mileage reimbursement in Denmark are set by the Danish Tax Agency and are designed to compensate employees for expenses related to business travel in their own cars. Mileage reimbursement includes driving from the workplace to meetings, customers, or other work-related tasks and does not cover travel between home and a permanent workplace.
Is it worth driving your own car for your employer?
Driving your own car while working for Just Eat or other employers can be a financially viable option, helping cover the costs of owning a car. Couriers with their own cars working almost full-time can earn around 1,500 DKK tax-free per month in addition to their base salary and allowances.
What is the mileage reimbursement rate?
For up to 20,000 km per year, the rate in 2025 is 3.81 DKK per kilometer driven.
For distances beyond 20,000 km per year, the rate in 2025 is 2.23 DKK per kilometer.
These amounts are tax-free, meaning you receive payment per kilometer without having to pay tax on it. In most cases, the reimbursement provides a significant contribution to your car expenses. To qualify for mileage reimbursement, you must keep a log of your driven kilometers and report your travel during the same year that you use your car for your employer.
Using a car for work
Using your car for work refers to driving for your employer during work hours, not the commute between home and the workplace. Jobs where cars are typically used include:
Sales representatives visiting clients, potential customers, or partners, often carrying products or materials for demonstrations.
Technicians and service workers performing repairs and maintenance, traveling from task to task.
Consultants meeting clients, holding consultations, or participating in projects at various locations.
Healthcare workers like nurses, doctors, and therapists visiting patients in their homes.
Real estate agents showcasing properties to buyers.
Journalists traveling to news events or conducting interviews.
Drivers and couriers delivering goods and packages.
IT technicians installing and maintaining IT and telecommunications equipment for clients.
Mileage reimbursement can be a great supplement to your salary at Just Eat and help offset your car's operating costs. Additionally, driving ensures you stay dry and comfortable during deliveries, and you can take on orders that are too far for bicycle couriers.
Company Car vs. Private Car: Which Is Better When Driving for an Employer?
An alternative to mileage reimbursement is a company car provided by the employer, which is taxed differently.
With a company car, the employee is taxed based on the value of having a car at their disposal—regardless of how much they use it. While having a company car means no personal expenses for fuel, maintenance, or insurance, the taxation on this benefit is relatively high to compensate for the financial advantage.
Whether a company car or a private car is the better option depends on individual circumstances, including driving habits, tax implications, and personal preferences.
What is the mileage deduction?
There is a distinction between mileage reimbursement (kørselsgodtgørelse) and the commuter tax deduction (kørselsfradrag).
Mileage reimbursement compensates for driving for your employer during work hours.
Commuter tax deduction (or "transport deduction") allows employees to deduct commuting expenses between home and work from their taxable income.
Conditions for the mileage deduction:
Distance: You can claim the mileage deduction if the distance between your home and workplace is more than 12 kilometres each way. The deduction is only given for kilometres exceeding the first 24 kilometres per day (12 km each way).
Mode of transport: It doesn't matter which mode of transport you use (car, bicycle, public transport, etc.), as long as you bear the costs of transportation yourself.
Employer payment: You cannot claim the mileage deduction for journeys where the employer pays for the transportation (e.g., if you receive a company car or are reimbursed for public transport).
How to calculate mileage deduction
There is a distinction between mileage reimbursement (kørselsgodtgørelse) and the commuter tax deduction (kørselsfradrag).
Mileage reimbursement compensates for driving for your employer during work hours.
Commuter tax deduction (or "transport deduction") allows employees to deduct commuting expenses between home and work from their taxable income.
Conditions for the commuter tax deduction:
Distance: You can claim the deduction if the distance between your home and workplace exceeds 12 kilometers each way. The deduction only applies to kilometers beyond the first 24 kilometers per day (12 km each way).
Transport mode: The deduction applies regardless of whether you use a car, bike, or public transportation, as long as you cover the costs yourself.
Employer payment: You cannot claim the deduction if your employer pays for transportation (e.g., provides a free company car or covers public transport costs).
Rates for 2025:
From 25 to 120 km per day: 2.23 DKK per kilometer.
For distances beyond 120 km per day: 1.12 DKK per kilometer.
Special cases:
Bridges and ferries: If you cross a toll bridge or use a ferry to get to work, you can also deduct these costs.
Disabilities: People with disabilities may qualify for deductions starting from the first kilometer.
When Can You Claim the Deduction?
You are eligible for the deduction on days you physically commute to work. You cannot claim it for:
Work-from-home days
Vacation or sick days
When Are You Not Eligible for the Deduction?
You cannot receive the deduction if:
Your employer pays for your transportation
You have a company car
You are commuting to and from school (SU is not considered salary)
You are in an unpaid internship
How Is the Deduction Applied?
The transport deduction is not paid out directly but is applied as a tax deduction on your annual tax return (årsopgørelse).
You can report it on your preliminary tax assessment (forskudsopgørelse) or annual tax return, which will adjust your tax refund or outstanding tax balance accordingly.
You can read more about the annual report here.
How Much Will You Save?
The deduction is worth approximately 26% of the amount deducted. For example, if your transport deduction is 5,000 DKK, you will save about 1,300 DKK in taxes.
The transport deduction is an important tax benefit for many employees who commute long distances, helping to significantly reduce overall transportation costs.
