Deduct the maintenance & repair costs of your car

Vehicle maintenance and/or repair costs are deductible to the same extent as your car is. So, if your car is only 70% deductible, the same principle applies to maintenance and repair costs. It’s as simple as that 😉 In addition to maintenance and repair costs, the same applies to other costs associated with your car or commercial vehicle:

• Car accessories
• Car insurance
• Fuel or electricity
• Registration tax
• Interest on financing

How do you calculate the tax deductibility of your car?

To what extent your car or van is tax-deductible is calculated using a formula. This formula determines the deduction percentage based on the CO2 emissions of your car.

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

In addition, to find out the deductible portion of your car and car expenses, you must also consider the professional use of your car.

An example: you purchase a hybrid car in 2024 and according to the formula, your car is up to 95% tax deductible. You are self-employed in main occupation and use your car for professional purposes 80% of the time. You may then deduct your company car and all associated car expenses, including repairs, repair and maintenance of your car, for 76% for tax purposes (80% of 95%).

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

Are you self-employed in a secondary occupation and use the car for professional purposes only 50% of the time? Then you may enter 47% of the cost as professional expenses (50% of 95%).

Please note, in the coming years the maximum deduction percentage decreases significantly.

Read more about tax deductions for your car or company car here.