In the second half of 2025, significant changes are coming to the regulations governing mileage allowances – that is, the reimbursement of costs for using private vehicles for business purposes. The amendments will not only raise the rates but – equally importantly – expand eligibility to include electric, hybrid, and hydrogen-powered vehicles.
What’s changing?
The Ministry of Infrastructure has drafted a regulation that will come into force following the completion of amendments to the Road Transport Act. The new rules will introduce:
- new, higher mileage reimbursement rates,
- inclusion of electric, hybrid, and hydrogen vehicles in the reimbursement system,
- new qualification criteria – based on engine power and type of drive rather than engine displacement.
Currently, the mileage rates per 1 km driven are:
- PLN 0.89 – for passenger cars with engine displacement up to 900 cc,
- PLN 1.15 – for passenger cars with engine displacement over 900 cc,
- PLN 0.69 – for motorcycles,
- PLN 0.42 – for mopeds.
These rates have remained unchanged since January 17, 2023.
New mileage rates
Under the draft regulation, the mileage allowance will be differentiated based on the type of drivetrain and engine power. Example rates:
Combustion engine passenger cars:
Hybrid vehicles:
- up to 75 kW – PLN 0.83/km
- over 75 kW – PLN 1.10/km
Electric/hydrogen-powered vehicles – PLN 0.60/km
Motorcycles:
- combustion – PLN 0.75/km
- electric – PLN 0.35/km
Mopeds:
- combustion – PLN 0.45/km
- electric – PLN 0.20/km
What does this mean for employees and employers?
Higher mileage rates mean greater, tax-free reimbursement for employees using private vehicles for business purposes – whether for business travel or local commuting (depending on legal eligibility).
By including alternatively powered vehicles in the mileage reimbursement system, employees will no longer be penalized with taxation, and employers can classify the reimbursed amounts as tax-deductible expenses – of course, within set limits.
Why are electric vehicles subject to lower rates?
The Ministry explains the lower rates for electric vehicles by pointing to their lower operating costs – fewer parts, reduced risk of failure, and greater energy efficiency. As a result, the reduced wear and tear justifies lower reimbursement limits.
A word of caution
When it comes to local travel, tax exemptions may still apply only to specific professional groups (e.g., social workers, court probation officers, forest rangers, postal workers). This interpretation is supported by both the tax authorities and a number of administrative courts.
Making business easier.
