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Bicycle and Motorcycle Mileage Rate Quietly Cut in Half Since July 2025

The bicycle and motorcycle mileage allowance dropped from €0.50/km to €0.25/km on 1 July 2025 — a mid-year change many taxpayers still don't know about. Here's what it means for your claims.

Bicycle and Motorcycle Mileage Rate Quietly Cut in Half Since July 2025

Here's a change that happened quietly in the middle of 2025 and still catches people off guard: if you claim mileage for business trips by bicycle or motorcycle, the rate you're entitled to dropped by half partway through the year.

What Changed

Vehicle type Rate before 1 July 2025 Rate from 1 July 2025
Car €0.50/km €0.50/km (unchanged)
Extra passenger €0.15/km €0.15/km (unchanged)
Motorcycle €0.50/km €0.25/km
Bicycle €0.50/km €0.25/km (capped at 3,000 km/year)

Bicycle and motorcycle mileage briefly matched the car rate of €0.50/km — a generous incentive introduced to encourage sustainable commuting and business travel. That parity ended on 1 July 2025. The car rate stayed put; bicycle and motorcycle mileage dropped back to €0.25/km.

Why This Matters More Than It Looks

Because this happened mid-year, anyone tracking bicycle or motorcycle mileage for business trips across all of 2025 needs to split their logbook at the 1 July cutoff:

  • Trips before 1 July 2025: claim at €0.50/km.
  • Trips from 1 July 2025 onward: claim at €0.25/km.

Getting this wrong in either direction is a real risk — overclaiming at the old rate for post-July trips will be flagged on review, while underclaiming (using €0.25/km for pre-July trips) simply leaves money on the table.

The Annual Cap Also Matters

The bicycle mileage cap is 3,000 km per year. At the current €0.25/km rate, that's a maximum annual deduction of €750 — half of what it would have been at €0.50/km. If you're a frequent business cyclist, this cap plus the rate cut together mean roughly half the deduction ceiling compared to using the old full-year rate.

Where This Shows Up

This applies to two overlapping situations:

  • Business travel away from your normal workplace (client visits, off-site meetings) — covered under general business-trip mileage rules.
  • Work-related expenses claimed on your annual tax return as an employee, under the same reduced rate and cap.

Commuting between home and your regular workplace by bicycle is a separate matter, covered by the Pendlerpauschale rather than mileage rates.

For the complete picture of mileage, per-diem, and overnight allowances for business travel — including the unchanged car rate and foreign per-diem tables — see our full guide: Business Travel and Mileage Allowances in Austria.

Calculate your income tax →

Frequently Asked Questions

What is the current bicycle mileage rate in Austria?

Since 1 July 2025, the bicycle mileage rate (Kilometergeld) for business travel is €0.25 per kilometer, down from €0.50 per kilometer. The annual cap remains 3,000 km, for a maximum annual deduction of €750.

Did the car mileage rate change too?

No. The car mileage rate stayed at €0.50/km, unchanged. Only the bicycle and motorcycle rates were cut to €0.25/km from 1 July 2025.

Do I need to split my mileage log by date?

Yes, if you cycled or rode a motorcycle for business purposes both before and after 1 July 2025. Trips logged before that date qualify for the older €0.50/km rate; trips from 1 July 2025 onward use the reduced €0.25/km rate.

Why wasn't this change more widely reported?

It was a mid-year change that took effect without the fanfare of a new tax-year announcement, and it only appears explicitly in the 2026 edition of Austria's official tax handbook — many taxpayers and even some payroll systems have not caught up.

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