Car Allowance Calculator

A car allowance is a simplified monthly reimbursement for employees using their private vehicle for work purposes, without the need to log every individual trip. The employer pays a fixed monthly amount up to the statutory cap, calculated using the official mileage rate. Within the statutory limits, the payment is exempt from Polish personal income tax (PIT) and social insurance (ZUS).

The rates in force since 17 January 2023 are: car up to 900 cc — PLN 0.5214/km; car over 900 cc — PLN 0.8991/km; motorcycle — PLN 0.2302/km; moped — PLN 0.1382/km. These rates are set by ministerial regulation and remain unchanged for 2026.

The monthly km cap depends on the size of the city where work-related travel takes place: up to 100,000 inhabitants — 300 km; 100,000–500,000 inhabitants — 500 km; over 500,000 inhabitants — 700 km.

A mileage log (ewidencja przebiegu pojazdu) requires the employee to record every work trip and reimburses exact kilometres driven. A car allowance is a simplified alternative — the employer pays a monthly flat sum up to the statutory cap, with no requirement to log individual trips.

Within the statutory monthly km cap and official mileage rate, the car allowance is exempt from personal income tax and ZUS contributions. Any excess above the statutory limit is treated as employee income and is subject to both PIT and ZUS.

Yes. The allowance must be reduced proportionally for each day the employee was absent (e.g., holiday, sick leave) or did not use the vehicle for work. The reduction is calculated based on the number of working days in the month.

The employer and employee must sign a written agreement for use of a private vehicle for work purposes. The agreement should specify the vehicle type, engine capacity (or vehicle category), and the city or municipality where work-related travel takes place.

Working from home alone does not entitle an employee to a car allowance. The allowance applies to actual work-related travel — for example, visiting clients, attending meetings, or travelling to public offices. Without genuine work-related driving, the allowance cannot be justified.

Yes. The statutory rates and km caps represent the maximum that can be paid tax-free. Employers may agree a lower amount in the employment contract, but they cannot exceed the statutory cap without the excess becoming taxable income for the employee.

No. The result is an estimate for informational purposes only. The exact amount depends on the individual contract, number of working days, and any absences. For binding advice consult your HR department, accountant, or a qualified tax adviser.