You deduct your personal contribution for a company bicycle from the annual tax addition of 7% based on the suggested retail price of the cargo bike. For an electric cargo bike with a manufacturer's suggested retail price of, for example, €5,000, the taxable benefit is €350 per year; your personal contribution reduces that amount, but never below zero (Dutch Tax and Customs Administration, 2025).
If you're an employee who chooses to get an electric cargo bike through your employer, you'll want to know exactly what it will cost you after taxes. Below, you can calculate this step by step, using a specific example and a summary table.
What is the employee contribution for a company bicycle?
A personal contribution is the amount you pay yourself for a company bicycle that you also use for personal purposes. Your employer often deducts this from your net pay. The personal contribution reduces the taxable benefit that you would otherwise have to pay in full.
The taxable amount itself is a fixed percentage: 7% of the bicycle’s manufacturer’s suggested retail price, including sales tax and accessories (Dutch Tax and Customs Administration, 2025). That amount is added to your taxable income, even if you only ride the bicycle for personal use once a month.
If you pay a personal contribution, that amount is deducted. The remainder forms the basis on which you pay income tax. This helps you keep track of your monthly net expenses.
How do you calculate the out-of-pocket cost for an electric cargo bike?
You calculate your out-of-pocket cost in four steps. You start with the suggested retail price and end with the net amount you’ll pay each month. Have the official suggested retail price (including accessories) on hand.
- Determine the suggested retail price of the cargo bike, including sales tax and installed accessories such as a rain cover or extra battery.
- Calculate the additional tax liability: Multiply that recommended price by 7%. This is the annual amount that will be added to your salary.
- Deduct your copay of the additional tax liability. The result must not be negative; a value below zero counts as zero.
- Calculate your tax burden: Multiply the remaining amount by your tax rate (for example, 37% or 49.5%). That is your actual annual tax liability.
Important: Only a contribution for personal use reduces the additional tax liability. A contribution toward the purchase price that you agree upon separately is treated differently for tax purposes. Always check with your employer or accountant to confirm this.
Calculation Example: Personal Contribution for a Cargo Bike
This table shows how a copayment reduces your net costs. We’re using a hypothetical list price of €5,500 and a tax rate of 37%, purely for illustrative purposes.
| Section | No out-of-pocket cost | With an annual copay of €200 |
|---|---|---|
| Suggested retail price for a cargo bike (including sales tax) | €5.500 | €5.500 |
| Additional Taxable Income (7%) | €385 | €385 |
| Personal Contribution for Personal Use | €0 | €200 |
| Taxable balance | €385 | €185 |
| Annual Tax Burden (37%) | ±€142 | ±€68 |
You can see that the out-of-pocket contribution reduces the taxable amount from €385 to €185. While you’ll pay the €200 yourself, your tax burden will decrease. So always calculate your total costs, not just the additional tax liability.
“We’ve noticed that employees often focus solely on the purchase price,” says an account manager at STOER Bikes. “But it’s actually the combination of the additional tax liability and your out-of-pocket contribution that determines how much you actually have left each month. A quick calculation can help you avoid surprises.”
Taxable Income vs. Out-of-Pocket Expenses: What's the Difference?
The additional tax liability is a mandatory tax addition to your salary whenever you also use the bicycle for personal purposes. The personal contribution is the amount you pay yourself to reduce that tax liability. So, while they are not synonyms, they work together.
The 7% tax adjustment has been in effect since 2020 and is intended to tax personal use (Government of the Netherlands, 2025). Unlike with a car, the percentage is low and the suggested retail price of a bicycle is often modest, so the tax burden usually remains small.
Would you rather buy, rent, or lease? In our article about Leasing an e-bike vs. Buying One We'll compare the options based on monthly costs and flexibility. This will help you choose the plan that best fits your situation.
When is a copayment beneficial for you?
Paying a personal contribution is especially worthwhile if you’re in a high tax bracket or if your employer links the contribution to lower monthly payments. In that case, you’ll reduce the taxable addition and end up with more take-home pay.
Keep these three points in mind as you weigh your options:
- Your tax rate: The higher your tax bracket, the more you'll save with a lower additional tax liability.
- The suggested retail price: with a more expensive electric cargo bike, such as CargoX With a payload capacity of 100 kg and 92 Nm of torque, the additional tax liability is higher.
- The meeting with your employer: A copayment is not a requirement, but an agreement you make together.
Are you an employer looking to set up a bicycle benefit program? In our guide to the Implement a company bicycle program You'll learn how to handle this properly from an administrative standpoint. This way, both employees and employers benefit from the same level of clarity.
Are you unsure about the exact percentages for your year? Always check the current figures at the Tax Office and, for company policies, refer to the Rijksdienst voor Ondernemend Nederland (RVO).. Tax rules may change from year to year.
Frequently Asked Questions About the Personal Contribution for a Company-Provided Bicycle
How much does a company bike cost me per month, after taxes?
That depends on the suggested retail price, your tax rate, and any personal contribution. For a cargo bike costing €5,500 and a tax rate of 37%, you’ll pay about €142 in taxes per year without a personal contribution—that’s around €12 per month. A personal contribution would reduce that amount even further.
Does a copay always reduce my taxable income?
Only a personal contribution for personal use reduces the imputed income, and it never goes below zero. A contribution toward the purchase price is treated differently for tax purposes. Ask your employer how the contribution is defined in your plan so you know which portion reduces your imputed income.
Does the 7% additional tax liability also apply to an electric cargo bike?
Yes, the 7% tax addition applies to any business bicycle that you also use for personal purposes, including electric cargo bikes (Dutch Tax and Customs Administration, 2025). The percentage is calculated based on the manufacturer’s suggested retail price, including VAT and any installed accessories. Check the current percentage for each tax year.
Can I get a company bike without having to pay a copay?
Absolutely. A personal contribution isn’t a requirement but an agreement between you and your employer. Without a personal contribution, you’ll pay the full tax-equivalent amount through your paycheck. For a bicycle, that’s usually a small amount compared to a company car.
Is leasing a better deal than buying a company bike?
It depends on the situation. With an operating lease, maintenance and insurance are often included in a single monthly payment, while a installment purchase can end up being cheaper. Compare your options and Apply for an operating lease if predictable monthly expenses are a bigger burden for you.
Would you like to know exactly how much an STOER will cost your business, including the taxable benefit and your out-of-pocket contribution? Get in touch for a customized quote or View the full selection of bicycles to make your choice.
