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A company bicycle and a company car at the same time? Here's how it works!

22 January 2026

Company car or company bike? Why not both! More and more companies are allowing their employees to use both cars and bikes – and with good reason: those who combine both options wisely benefit in several ways. But how does this work in practice? What does the tax office say about it? And is this model really worthwhile? In this article, we clarify all the important questions surrounding this dual strategy – in an understandable, fact-based way and with a clear conclusion.

The most important information at a glance

  • Legally permitted: A company car and a company bicycle may be used at the same time.
  • Separate taxation: Both vehicles are taxed independently of each other.
  • Company bicycle cheaper: The advantageous 0.25 percent rule applies to company bicycles instead of the 1 percent rule for private use.
  • No additional tax for commuting: Company bicycles are not subject to the 0.03 percent tax per kilometer traveled.
  • Combined advantage: Using both models can therefore be doubly advantageous from a tax perspective.
  • Maximum mobility: Ideal for anyone who wants to travel flexibly, sustainably, and healthily.
detail picture kalkhoff bike

Why a company bicycle is a useful addition to a company car

Whether in urban rush hour traffic, for quick errands, or in your free time, a company bike complements a company car in many ways. While cars are better for longer distances or bad weather, bikes show their strengths in the city: no traffic jams, no searching for parking, and exercise in the fresh air. At the same time, bikes are a sustainable form of transportation and a real plus for the environment, health, and company image.


And that's not all: a company bike can also be much faster than a company car in urban areas, as it allows you to avoid traffic jams and get straight to your destination. With a leased bike, you can also find parking spaces more easily, which saves time and money in hectic everyday city life. It is therefore no coincidence that employers are now promoting leased bikes much more frequently than company cars, as a recent study found.

Company bicycle and company car: Is this combination even permitted?

However, many users are unsure whether a company bicycle and a company car can be used in combination. The clear answer is yes, parallel use is expressly permitted. Employees are allowed to use both a company car and a company bicycle, provided that their respective employers offer both. Legally, these are two separate monetary benefits that are treated independently of each other for tax purposes. There is therefore no restriction prohibiting combined use.


The tax treatment of both mobility models is a decisive factor for many employees. While the company car has been the classic monetary benefit for years, the company bicycle now offers a real tax advantage – primarily due to the so-called 0.25 percent rule.

A direct comparison of tax rules

icon company car

Company car

  • Taxation of private use: 1% of the gross list price
  • Commuting: +0.03% per kilometer traveled
  • Tax advantage: Limited, depending on use
  • Legal basis: Section 8 (2) EStG (German Income Tax Act)

Icon person on bike

Company bike

  • Taxation of private use: 0.25% of the gross list price
  • Commuting: No additional taxation
  • Tax advantage: Significantly cheaper, especially for short distances
  • Legal basis: BMF letter dated January 9, 2020

Particularly attractive: journeys between home and work are not subject to additional tax when using a company bicycle. These are already included in the flat rate – unlike company cars, which are subject to the 0.03 percent rule per kilometer. This makes company bicycles even more attractive from a tax perspective, especially for short commutes.

Save twice with combined use

In fact, many users think that the tax advantage of a company bike does not apply if they already use a company car. The good news is that this is a misconception. In fact, both advantages can be used in parallel. This means:


  • Two separate monetary benefits, each of which is taxed individually
  • Double mobility freedom for different use cases
  • Optimized tax burden, especially due to the tax-privileged treatment of bicycles


An often overlooked point: Since the monetary benefit for the company bike already covers the commute to work, this can reduce the tax burden on the company car in individual cases. This is particularly relevant when it comes to assessing the entire commute in terms of income tax deduction.

person pushing kalkhoff bike
cervelo gravelbike in forest

For whom is this combination particularly worthwhile?

The parallel use of company cars and company bicycles is not only legally possible, but also makes practical sense—especially for:


  • Commuters who travel longer distances by car and shorter inner-city routes by bicycle
  • City dwellers who want to be more flexible on the last mile
  • Employees with changing work locations
  • Managers who need to be mobile for work but also value sustainable leisure mobility


Good to know: A company bicycle can also be used tax-free in your free time – for excursions, sports, or shopping.

How companies implement the combination

Companies can easily implement the parallel provision of company cars and company bikes. Both mobility solutions can be realized using established leasing models – for example, with a provider such as Lease a Bike.


Thanks to standardized processes, the procedure is efficient for both vehicle and bicycle leasing. Companies benefit from a wide selection of brands and models, as well as comprehensive service packages that include maintenance, insurance, and mobility guarantees. The entire process is handled digitally, which significantly reduces administrative costs.


Convenient: Lease a Bike's leasing calculator also makes it quick and easy to calculate the individual tax savings for employees.

Conclusion

Two vehicles, one smart way to get around

Company car or company bike? Our analysis shows that the correct answer is often “both.” One thing is certain: those who skillfully combine the advantages of both models not only enjoy greater flexibility, but also benefit from tax advantages. And best of all, companies that enable this kind of mobility not only create an attractive benefit, but also promote health, sustainability, and employee satisfaction.

Frequently asked questions (FAQ) about company bikes and company cars

Can you use a company bicycle and a company car at the same time?

Yes, a company bicycle and a company car can be used at the same time. Parallel use is legally permissible provided that the employer offers both benefits. For tax purposes, company bicycles and company cars are considered separate monetary benefits. There is no legal restriction that excludes a combination of the two.

How are company bicycles and company cars treated for tax purposes?

Company bicycles and company cars are taxed independently of each other. For company cars, the 1 percent rule generally applies to the gross list price, in addition to taxation of the commute to work. For company bicycles, however, the significantly more favorable 0.25 percent rule applies—without additional taxation of commutes to work. This gives company bicycles a clear tax advantage.

Is the commute to work taxable for company bicycles?

No, with a company bicycle, journeys between home and work do not have to be taxed separately. Unlike with a company car, the 0.03 percent rule per kilometer traveled does not apply. The monetary benefit of the company bicycle already covers private use, including commuting, on a flat-rate basis. This makes the model particularly attractive for commuters with short to medium distances.

Does the 0.25 percent rule apply to every company bicycle?

The 0.25 percent rule applies to conventional bicycles and e-bikes with motor assistance up to 25 km/h. Fast e-bikes (S-pedelecs) that provide assistance at speeds above 25 km/h are legally considered motor vehicles. In this case, taxation is based on the 1 percent rule, as with company cars. However, the 0.25 percent rule applies to most leased bicycles.

Is a company bicycle worthwhile even if you already have a company car?

Yes, that's exactly when a company bike is particularly worthwhile. The tax advantage of a company bike remains fully intact even if you already have a company car. In practice, employees benefit from greater flexibility, lower tax deductions, and a sensible distribution of mobility. Company cars for longer distances, company bikes for everyday use and city travel—a combination with added value.

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