Calculating company car TCO: why this will be more important than ever in 2026

Since January 1, 2026, the tax landscape for company cars has undergone a drastic change. All tax benefits for vehicles with an internal combustion engine will disappear completely. Not only will tax deductibility drop to 0%, but the multiplication factor for the CO₂ contribution will also increase from 2.75 to 4.

This is not a subtle adjustment, but a fundamental shift. Electric vehicles are definitively becoming the standard within the Belgian company car fleet.

Electrification is no longer a distant prospect

This evolution is already clearly visible in practice today. At TraXall Belgium, we manage over 23,000 company vehicles. Today, 95% of new orders from our clients are already fully electric.

Nevertheless, we observe that many companies still base their decisions on incomplete cost calculations. And precisely that poses a risk in a rapidly changing mobility landscape.

Anyone choosing a company car today can no longer look solely at the lease price. A correct TCO (Total Cost of Ownership) calculation is essential to understand the true cost of a company car and avoid future surprises.

How do you calculate the TCO of a company car?

The Total Cost of Ownership of a company car goes far beyond the monthly lease cost. Especially in a context of rapidly changing regulations, an accurate TCO calculation must take into account, among other things:

• Energy consumption
• Non-recoverable VAT
• CO₂ contribution
• Tax on disallowed expenses
• Charging costs and charging strategy
• The driver's actual usage profile

Without that complete picture, choices are made that seem logical in the short term, but in the medium term lead to higher mobility costs and budgetary surprises.

What costs are included in a TCO calculation?

A reliable TCO analysis combines fiscal, operational, and usage-related costs into a single overall picture per vehicle.

This is becoming increasingly important as companies increasingly have to weigh their fleet policy against alternatives such as a mobility budget, public transport, or other mobility solutions. An objective and comprehensive TCO is the starting point for strategic decisions.

“The speed at which regulations change makes it particularly challenging for companies to make the right decisions,” says Leomont Wouda, Managing Director of TraXall Belgium. “Our role as a full-service fleet management partner is to translate that complexity into clear and comparable cost insights per vehicle.”

Why is TCO becoming more important for electric company cars?

Anyone who thinks the challenge ends with the switch to electric vehicles is mistaken. From 2027, the tax deductibility of electric cars will also gradually decrease further to 67.5% by 2031.

Companies that already analyze data, calculate scenarios, and adjust their car policy today will retain much more control over their future mobility costs.

2026 is not an endpoint, but the beginning of a new company car model. Electrification is just one part of this. The real difference lies in insight, data, and strategic choices.

A well-considered TCO calculation is not an administrative exercise, but a necessary lever to keep mobility affordable, predictable, and future-proof.

Do you want to know the true cost of your fleet?

Many companies still base their decisions on assumptions, standard calculations, or merely the lease price. As a result, significant costs often remain under the radar.

TraXall Belgium helps organizations map out the full Total Cost of Ownership of their fleet, calculate scenarios, and make informed choices for the future.

Do you want to know the actual TCO of your vehicles today? Contact our consultants for an objective analysis of your fleet, taxation, and future mobility costs.