Mileage deduction for the self-employed: 2026 rates and rules

The 2026 rates

The rates are set by the Tax Council and adjusted every year — the 2026 rates rose with the higher costs of running a car.

• DKK 3.94 per km for the first 20,000 business km per year
• DKK 2.28 per km beyond 20,000 km
• DKK 0.64 per km by bicycle, moped or e-scooter

Two methods: state rate or actual costs

As a sole trader using your own car you can either deduct per kilometre at the state rate, or deduct the car's actual business running costs (fuel, service, depreciation — split by kilometres driven). The state rate is by far the simplest and best for most; actual costs can win with an expensive car and heavy business driving.

Note: the choice generally binds you for that car — so choose deliberately from the start.

The requirement: a mileage log

The deduction requires documentation for every trip: date, start and end point, kilometres and the business purpose. An app or a simple spreadsheet is fine — but it must be kept as you go, not reconstructed in December.

Home-to-work is different

Driving between home and a fixed workplace is private by default and belongs under the ordinary commuter deduction — not the business mileage deduction. Client visits, supply runs and driving between changing work sites do count as business mileage.

Running an ApS?

Then the company can pay you tax-free mileage allowance as an employee at the same rates — with the same documentation requirements. Your bookkeeper makes sure the payout is booked and documented so it holds up in an audit.