Do you have (a right to) a company car? You can trade it for a budget equal to its total cost for your employer (the TCO) — between €3,233 and €17,244 in 2026. Spent on sustainable mobility or on rent/mortgage (if you live within 10 km of work), that budget is 100% exempt from taxes and social security. The balance is paid in cash, minus a 38.07% contribution.
The principle: your car is worth a budget
The mobility budget, introduced by the law of 17 March 2019, rests on a simple idea: a company car costs your employer a certain amount each year — lease, fuel or electricity, insurance, taxes, CO2 contribution. That total cost is the TCO (Total Cost of Ownership).
If you give up your car (or the right to one), your employer converts that TCO into a personal annual budget you spend as you wish across three "pillars". For the employer, the operation is cost-neutral: they spend the same amount as before. For you, it can be highly profitable, because a large part of the budget escapes all taxation.
Since 1 January 2024, the TCO is calculated using one of two methods set by royal decree: the actual-costs method (average of the car's effective costs, generally over 4 years) or the lump-sum method (a formula based on the catalogue value and home-to-work kilometres). The employer picks one method and sticks with it for 3 years.
Who is eligible?
Two cumulative conditions:
- On the employer's side: they must have provided company cars to at least one employee for an uninterrupted period of 36 months before introducing the mobility budget (with an exception for young companies less than 36 months old). And crucially: they must choose to offer the scheme — it is currently optional.
- On the employee's side: you must have a company car or be eligible for one under your company's salary policy. The former waiting periods for employees have been abolished — even a newly hired eligible employee can request the budget from day one.
The federal coalition agreement provides for a "mobility budget for all". The obligation for employers to offer it, first envisaged for 2026, has been postponed to 1 January 2027 for companies with at least 50 employees, and to 1 January 2028 for smaller ones — employers with fewer than 15 employees would be exempt. Dates to be confirmed in the final legislation.
The 2026 amounts
| Parameter | 2026 amount |
|---|---|
| Minimum budget | €3,233 / year |
| Maximum budget | €17,244 / year |
| Relative cap | Max. 1/5 (20%) of your total gross annual salary |
Concretely, a mid-range company car represents a TCO of €6,000 to €10,000 per year; premium models go well beyond. That amount — not your salary loss, not the catalogue value — becomes your budget.
The 3 pillars: where your budget goes
| Pillar | Content | Tax treatment |
|---|---|---|
| 1. Green car | A smaller company car — mandatorily zero-emission for any choice made since 1 January 2026 | Classic benefit in kind (taxed) |
| 2. Sustainable mobility & housing | Bike, bike leasing, e-scooter, SNCB/STIB/TEC/De Lijn season tickets, shared cars, taxis, rent or mortgage (home < 10 km from work) | 0% — exempt from social security and taxes |
| 3. Cash balance | The rest, paid once a year at the start of the following year | Special contribution of 38.07%, no income tax |
Pillar 2, the heart of the system
Everything that goes through pillar 2 is fully exempt: no social security, no withholding tax, no final tax. Every euro of budget becomes a euro of purchasing power. It includes:
- The purchase, rental or leasing of a bike (classic, electric, speed pedelec, cargo) — maintenance and equipment included;
- Public transport season tickets — for you, and even for family members domiciled at your address;
- Shared solutions: car sharing (Cambio…), e-scooters, shared bikes, taxis, and even rental cars (max. 30 days per year);
- Housing costs: your rent, or your mortgage repayments (interest and capital), provided your home is within a 10 km radius of your usual workplace — or you mainly work from home, in which case your home counts as your workplace.
Pillar 3: the closing cash
Whatever you have not spent in pillars 1 and 2 is paid out in cash at the start of the following year. That balance escapes income tax but incurs a special social security contribution of 38.07% at your expense. In exchange, it builds social rights: it counts towards your pension, among other things. For every €100 of balance you receive about €62 net — much better than classic gross salary, but much worse than pillar 2.
Worked example: Sarah, an €8,000 budget
Sarah, an employee in Brussels, gives up her company car with a TCO of €8,000/year. She lives 6 km from her office. Three ways to use her budget:
| Strategy | Allocation | Net value for Sarah |
|---|---|---|
| All cash | €8,000 in pillar 3 | €8,000 − 38.07% = ~€4,954 |
| Mobility mix | E-bike lease (€1,200) + STIB season ticket (€610) + €6,190 balance in cash | €1,810 net in benefits + ~€3,833 cash = ~€5,643 |
| Maximum pillar 2 | Rent €550/month (€6,600) + bike lease (€1,200) + €200 balance in cash | €7,800 net + ~€124 cash = ~€7,924 |
The difference between the worst and the best strategy: almost €3,000 net per year. The golden rule is crystal clear: maximise pillar 2, and above all the housing costs if you qualify.
Live within 10 km of work (or mainly work from home)? Put your rent or mortgage through pillar 2: it is 100% tax-free salary. Only then top up with bike and public transport. The pillar 3 cash is the "default" choice — fine, but the least profitable.
What to check before you sign
You lose your car — really
The mobility budget replaces the car and everything that comes with it: fuel card, maintenance, insurance, replacement vehicle. If your family relies on that car daily, honestly price out an alternative (private car, private lease, car sharing) before switching. Our net salary calculator helps you compare pay scenarios.
The choice is not endlessly reversible
The budget runs as long as you hold an eligible position. But internally, most employers restrict going back (often impossible before a date set in the company policy). Check your company's policy before giving up the car.
Some reimbursements disappear
While you benefit from the mobility budget, you can no longer combine it with the employer's contribution to your commuting season tickets or with the tax-free bike allowance — those costs are deemed covered by the budget itself (unless you only partially give up the car and keep a pre-existing benefit, a case to have validated by your payroll provider).
Your gross salary is untouched
Good news: the mobility budget does not touch your gross salary, holiday pay or end-of-year bonus. It is the car (a benefit) that is converted, not your remuneration. The rest of your salary package stays intact.
How to get it: the steps
Mobility budget or company car: the verdict
Keep the car if you drive a lot (long daily commutes, a family to transport, no credible alternative): an electric company car with a charging card remains a massive perk, tax-efficient via the benefit in kind.
Take the budget if you live in the city, near your work, and the car sleeps in the car park: combining rent + bike + public transport, pillar 2 turns an under-used perk into thousands of euros net. City dwellers living within 10 km of the office are the big winners of the system.
In between? Pillar 1 allows a smaller zero-emission car + the rest of the budget in pillars 2 and 3 — the favourite compromise for families.