Mileage Reimbursement 2025 – Everything You Need to Know

Mileage Reimbursement is a form of compensation given to employees or business owners who use their private vehicle for work-related purposes. It covers costs for fuel, wear and tear, and maintenance. In 2025, there are some important factors to consider to maximize tax-free reimbursement, whether you're driving a gasoline-powered car, electric vehicle (EV), or hybrid.

What is Mileage Reimbursement?

Mileage reimbursement is intended to cover the costs of using a private vehicle for business purposes. It applies to business trips that are not part of the daily commute between home and work. The reimbursement can be provided as both a taxable and tax-free portion, depending on the amount and type of vehicle used.

Tax-Free Mileage Reimbursement in 2025

The tax-free portion of mileage reimbursement is especially important to track. In 2025, the tax-free reimbursement rate for gasoline and diesel-powered cars remains 25 SEK per mile. For electric vehicles, the tax-free reimbursement is 12 SEK per mile. This difference reflects the lower operating costs of electric vehicles, but also suggests potential savings for those who drive EVs.

For hybrid vehicles, the reimbursement follows the same guidelines as gasoline cars when the combustion engine is used, while electric driving is calculated like pure electric vehicles. Therefore, it is important to maintain a clear driving log that indicates when the vehicle runs on electricity versus fuel.

How to Maximize Your Tax-Free Mileage Reimbursement

Document all trips carefully: A correct and up-to-date driving log is crucial to ensure you receive the right reimbursement. The log should include details such as the date, destination, purpose of the trip, number of miles driven, and any fuel or electricity usage.

Choose the right type of vehicle: If you frequently use your car for work, it might be worth considering an electric vehicle or hybrid. While EVs have a lower tax-free reimbursement rate, their operating costs are significantly lower, making them financially advantageous in the long run.

Consider fuel consumption: For gasoline and diesel vehicles, fuel efficiency is a key factor. Choosing a fuel-efficient car can help you reduce your actual costs, even if the tax-free reimbursement is fixed.

Leverage company benefits: If you run your own business, you can use mileage reimbursement as a tax-free bonus, meaning you won’t have to pay taxes on this reimbursement up to the tax-free limit. Any amounts exceeding that become taxable, however.

Mileage Reimbursement and Taxation

If your employer pays a higher reimbursement than the tax-free limit, for example, 30 SEK per mile, the difference is taxed as income. This means that if you receive 5 SEK more per mile than the tax-free amount for a gasoline car, those extra 5 SEK per mile will be taxed as salary.

Streamline with an Electronic Triplog

Using an electronic triplog can significantly simplify the management of mileage reimbursement. Such a system automatically records all trips, ensuring both distances and reimbursements are calculated accurately. The information is then easily sent to the appropriate recipient, reducing the risk of errors and ensuring everything is documented in line with current regulations.

In addition to saving time, the electronic driving log ensures that all trips are reported correctly. Whether you drive a private vehicle or a company car for work, this tool helps you stay organized and ensures you receive the proper reimbursement.