May 13, 2022

Fuel prices: are you entitled to the new mileage allowance of 150 euros?

2.5 million tax households will benefit from it. And you ?

the Prime Minister Jean Castex announced this Tuesday, January 25 that the mileage allowance scale would be increased by 10% “from this week”. People with transport costs important in the context of their work, and paying income tax, will thus be able to deduct from their taxable amount a sum determined by this scale.

The famous scale makes it possible to calculate the mileage allowance for taxed households declaring their professional expenses to taxes and who therefore waive the flat-rate deduction of 10% granted by the tax authorities.

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Soaring fuel prices: Jean Castex announces a 10% increase in the mileage allowance scale

150€ on average

Consequently, the increase in the mileage scale allows a reduction in income tax for taxpayers who declare these actual costs. Concretely, this should translate to a tax reduction of 150 euros on average for the 2.5 million tax households concerned.

The mileage scale changes every year. It is usually unveiled in February. The one for the year 2022 has not been revealed. A scale based on two factors: the number of kilometers traveled between home and work, and the tax horsepower of your vehicle.

Here is the scale in force in 2021 for cars (source: URSSAF):

Here is the scale in force in 2021 for motorcycles (source: URSSAF):

Here is the scale in force in 2021 for scooters under 50cm3 (source: URSSAF):

Note that the authorized daily limit is 80 km.

This sum will thus be withdrawn from taxable income and will result in a reduction of the taxable rate at source. The tax authorities also provide you with a simulator for mileage allowances to be reported on your tax return:

For bicycles, the formula is 0.25 times the number of kilometers traveled per day times the number of days worked. Compensation exempt from social contributions within the limit of 200 euros per year and per employee.