How does the additional tax liability for a used car work in 2025?

The addition for a used car in 2025 works broadly the same as for a new car, but there are a few specific points of interest. First, some general information about how the additional taxable benefit is regulated in the Netherlands.

Addition general

Additional tax is a tax you pay if you also use a company car privately. You pay a percentage of the catalog value of the car to your taxable income.

• Private use: if you use the car more than 500 kilometers per year privately, you will pay additional taxes.
• Percentage: The standard addition rate in 2025 is 22% of the car’s list value.

Additional charges for electric cars

Electric cars are subject to a lower addition rate on part of the list value in 2025.

• 6% additional tax on the first €30,000 of the list value.
• 22% additional tax on the amount over €30,000.

Used car addition

Used cars are subject to the same addition rates as new cars. But there are some important points to consider:

• List value: the addition is calculated based on the original list value of the car, including options and VAT, and not on the current market value.
• Age of the car: for older cars 15 years old or more, so-called youngtimers, the addition rate is 35% on the daily value (actual value of the car), not on the original list value.

Additional tax credit used electric car

If the used car is an electric car that previously fell under favorable addition rules (for example, 4% or 8% addition), this arrangement may apply until the end of the original 60-month period. After this period, the 2025 addition rate will apply.

Additional tax calculation used car

• Example 1: a used electric car with a list value of €40,000:
  • 6% additional tax on €30,000 = €1,800.
  • 22% additional tax on €10,000 = €2,200.
  • Total additional expenses: €4,000 per year.
• Example 2: a used gasoline car with a list value of €25,000:
  • 22% additional tax on €25,000 = €5,500 per year.

Addition youngtimer example

Take a 2008 Volvo V70 3.2 AWD. That falls into the “youngtimers” category in 2025 because the car is over 15 years old. Youngtimers are subject to a separate additional taxable benefit scheme. The addition is calculated on the basis of the daily value (the current value or purchase price) instead of the original catalog value. The percentage you pay is 35% of the daily value.

Addition calculation:

1. Purchase price (current value): € 19.950,-.
2. Addition rate: 35%.
3. Private use addition:
   • €19,950 × 35% = €6,982.50 per year.
4. Monthly addition:
   • €6,982.50 ÷ 12 = €581.88 per month.

Tax burden:

The addition is added to your gross income. How much tax you actually pay on this depends on your income tax rate. For example:

• At a rate of 37.05%, you effectively pay:
  • €6,982.50 × 37.05% ≈ €2,586 per year or €215 per month.
• At a rate of 49.50%, you effectively pay:
  • €6,982.50 × 49.50% ≈ €3,455 per year or €288 per month.

Notice:

• The daily value is often checked by the Tax Office. In this case, take the purchase price as a starting point (€19,950).
• Maintenance and running costs remain fully business deductible if the car is a business car