From 2027, employers will face an additional tax on fossil-fuel and hybrid passenger cars made available to employees. This could significantly increase the cost of your fleet and means you may need to make new choices about your mobility policy. What options are available to limit the additional costs? And how can you make your mobility policy fit for the future?
2027 pseudo-final levy: what does it mean for your mobility policy?
05.11.2026
What is changing from 2027?
From 1 January 2027, a pseudo-final levy will apply to passenger cars that emit CO₂ and that employers make available to employees for private use. This also includes commuting. The levy amounts to 12% of the list price per year. This additional tax does not apply to fully electric cars. The pseudo-final levy is payable entirely by the employer and may not be passed on to the employee. Transitional rules apply to cars that were already made available to employees before 2027.
Example: how much will the 2027 pseudo-final levy cost?
For a car with a list price of €40,000, the pseudo-final levy will amount to €4,800 per year, or €400 per month. These costs are in addition to your existing fleet costs.
Calculating the pseudo-final levy for multiple cars shows how quickly the additional costs can add up.
Additional costs per year: 1 car €4,800 | 5 cars €24,000 | 10 cars €48,000 | 25 cars €120,000 | 50 cars €240,000.
What options do you have as an employer?
The pseudo-final levy is a good opportunity to take a critical look at your mobility policy. What is right for your organisation, your employees and your financial circumstances? There are several options you may wish to consider.
1. Switching to fully electric vehicles
By choosing fully electric cars for new arrangements, you can avoid the pseudo-final levy. At the same time, you will reduce your fleet’s CO₂ emissions and take a step towards more sustainable mobility.
However, assess in advance what the transition will mean for your organisation and employees. Consider whether there are sufficient charging facilities, how charging costs and reimbursements will be arranged, and whether electric cars are suitable for everyday use.
2. Offering a mobility budget
You replace the company car with a mobility budget that allows employees to arrange their own transport. Whether they choose to use their own car, cycle, take public transport or combine different modes of transport, they have more freedom to tailor their mobility to their personal circumstances.
As you no longer make a company car available, you avoid the pseudo-final levy. At the same time, you offer a flexible mobility arrangement that meets your employees’ needs.
3. Keeping your current fleet for the time being
You decide to retain your current fleet for the time being and run out the existing lease agreements. Transitional rules apply to cars made available to employees before 1 January 2027. This gives you time to renew your fleet in stages.
However, make sure you identify in good time when lease agreements are due to expire and which cars need replacing. The pseudo-final levy may apply to cars made available for the first time from 2027 onwards. This allows you to make a considered choice between a fossil-fuel, hybrid or fully electric car at each replacement point.
You can also combine the options above. The key is to align your mobility policy with the needs of the different employee groups within your organisation.
Step-by-step plan: how to prepare for the pseudo-final levy
The best approach will differ from one organisation to another. Good preparation starts with understanding your current fleet and the financial implications of the new rules. This step-by-step plan explains what to consider and which choices you can make.
1. Take stock of your fleet
Identify the fossil-fuel and hybrid passenger cars you make available to employees. Among other things, check each car’s list price, the term of its lease agreement and how it is used.
2. Check the transitional rules
Find out when each car was first made available and by which employer. This will help you determine which cars qualify for the transitional rules and when the pseudo-final levy may become applicable.
3. Calculate the financial impact
Calculate the additional employer costs arising from the pseudo-final levy. Look beyond 2027 to the years that follow, and take into account when lease agreements are due to expire.
4. Compare alternative mobility scenarios
Explore which alternatives are suitable for your organisation and employees. Options include fully electric cars, mobility budgets, public transport, leased bicycles and combinations of different modes of transport. Compare the costs, options and practical implications.
5. Update your mobility policy
Use your findings to make informed decisions about your future mobility policy. Where necessary, update your car policy, mobility budgets and travel allowances. Record any new arrangements, inform employees and ensure that they are implemented effectively.
How Mobility Concept supports you
Dhe pseudo-final levy calls for more than simply adjusting your lease policy. It is the ideal opportunity to review your entire mobility scheme. Mobility Concept supports you throughout the process, from analysis and advice to implementation and administration.
- Advice & policy: We assess the financial impact, compare different mobility scenarios and advise you on suitable alternatives for your organisation.
- Implementation & administration: From a mobility budget to an amended lease or travel expenses scheme, we help you put your mobility policy into practice and manage it.
- Insight & reporting: Gain control over mobility costs, travel behaviour and CO₂ emissions. Clear reports help you monitor the results and make targeted adjustments.
This means you do not have to work through all the implications and alternatives yourself: you have one partner to help you make the right choices. Discover our services.
All your mobility arrangements managed through one platform
The pseudo-final levy makes this a good time to review your mobility policy and offer different forms of transport. Mobility Concept’s mobility platform allows you to manage all mobility arrangements in one central environment. You can combine different modes of transport and configure mobility schemes and budgets flexibly to meet your employees’ needs. They can arrange all their mobility and manage the administration through one intuitive app and mobility card.
Frequently asked questions about the pseudo-final levy
What is the pseudo-final levy?
The pseudo-final levy is an additional tax for employers who make a fossil-fuel passenger car available to an employee for private use. For cars up to and including 25 years old, the levy amounts to 12% of the list price per year. For older cars, the taxable amount is based on their market value.
When does the pseudo-final levy take effect?
The pseudo-final levy takes effect on 1 January 2027. The rules apply to fossil-fuel passenger cars that an employer makes available to an employee for private use from that date onwards, including commuting.
Which cars are subject to the pseudo-final levy?
The levy applies to passenger cars that emit CO₂, including petrol, diesel, LPG and hybrid cars. Fully electric passenger cars with no CO₂ emissions are exempt.
Does commuting also count as private use?
Yes. For the purposes of the pseudo-final levy, commuting is also regarded as private use. The levy may therefore apply even if an employee does not use the car for any other private journeys.
How much is the pseudo-final levy?
For passenger cars up to and including 25 years old, the pseudo-final levy amounts to 12% of the list price per year. For cars over 25 years old, it amounts to 12% of their market value. The calculation is made for each calendar month in which the car is made available. For example, if a fossil-fuel passenger car with a list price of €40,000 is made available for a full year, the pseudo-final levy will amount to €4,800 per year.
Who pays the pseudo-final levy?
The employer pays the pseudo-final levy through payroll taxes. The cost may not be passed on to the employee. The levy is payable in addition to the regular taxable benefit for private use.
What happens when an existing lease agreement expires?
The expiry of a lease agreement does not automatically mean that the pseudo-final levy becomes applicable. The determining factor for the transitional rules is the date on which the car was first made available by the employer. If, when a lease agreement expires, you make a different fossil-fuel passenger car available, the pseudo-final levy may apply. It is therefore advisable to map out lease agreements and replacement dates in good time.
Does the pseudo-final levy also apply to existing lease cars?
Transitional rules apply to passenger cars made available to an employee by the same employer before 1 January 2027. This means that the pseudo-final levy will not apply to these cars until 1 January 2031. The transitional period has therefore been extended compared with the original end date of 16 September 2030.
Does the pseudo-final levy also apply if a car is used exclusively for business purposes?
No. The pseudo-final levy only applies if a fossil-fuel passenger car is also made available for private use. Commuting is also regarded as private use. If the car is used exclusively for business journeys and private use, including commuting, is excluded, the pseudo-final levy does not apply.
Does the pseudo-final levy also apply to electric cars?
No. Fully electric passenger cars with no CO₂ emissions are exempt from the pseudo-final levy. The levy does apply to hybrid cars.
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