Question 1

How does the 1% rule for company cars work?

Accepted Answer

If you may also use the company car privately, you are taxed each month on 1% of the gross list price as a taxable benefit (§ 8(2) EStG with § 6(1) no. 4 EStG). The German list price at first registration including optional extras and VAT, rounded down to full €100, is decisive. At a list price of €45,000 this means €450 a month added to your gross salary — regardless of how much you actually drive privately and whether the car was bought new or used.

Question 2

How is the commute with a company car taxed?

Accepted Answer

For trips between home and your primary place of work, 0.03% of the list price per kilometre of one-way distance is added each month. At €45,000 and 20 km that is €270. If you commute on fewer than 15 days a month, you can instead choose individual valuation at 0.002% per kilometre and actual commuting day, for at most 180 days a year. This pays off especially when working from home.

Question 3

Which rule applies to electric company cars?

Accepted Answer

Fully electric cars are assessed at only a quarter of the list price, i.e. 0.25% instead of 1%. This applies to vehicles acquired between 2019 and the end of 2030 if the gross list price does not exceed the limit: €100,000 if acquired after 30 June 2025, €70,000 if acquired from 1 January 2024 to 30 June 2025 and €60,000 if acquired earlier. Above the limit half the list price applies (0.5%). The reduction also applies to the commute surcharge.

Question 4

When do plug-in hybrids pay only 0.5%?

Accepted Answer

Externally chargeable hybrids are assessed at half the list price if they emit at most 50 g CO₂ per kilometre or have a minimum all-electric range. For acquisitions from 2025 to the end of 2030 that is 80 km; for acquisitions from 2022 to 2024, 60 km is enough. The values are in the vehicle's certificate of conformity. If the hybrid meets neither condition, the full 1% rule applies.

Question 5

When is a logbook worthwhile?

Accepted Answer

A logbook pays off if you drive little privately, rarely use a long commute or have an expensive car that is already depreciated. Only the share of the actual total costs attributable to private and commuting trips is then taxed. The logbook must be kept promptly, completely and tamper-proof; a spreadsheet is not enough. The calculator shows how big the difference to the 1% rule is.

Question 6

How much net pay does a company car cost me?

Accepted Answer

The taxable benefit is not paid out but is taxed and subject to contributions like salary. Your net cost is therefore roughly the benefit times your personal marginal tax and contribution rate. Example: at €5,000 gross, tax class I, no church tax and a combustion car with a €45,000 list price and a 20 km commute, the payout falls by about €353 a month according to our calculator. As an electric car it is only about €87.

Question 7

Does my contribution reduce the taxable benefit?

Accepted Answer

Yes. If you pay your employer a user fee — flat per month or per kilometre driven — or bear individual costs such as fuel, this reduces the taxable benefit. It can fall to €0 at most; any excess does not count as income-related expenses. A salary conversion in favour of the company car, by contrast, is not a contribution.

Question 8

Can I claim the commuter allowance for a company car commute?

Accepted Answer

Yes. Although you are taxed on the commute through the 0.03%, you may claim the commuter allowance of €0.38 per kilometre of distance from the first kilometre in your tax return, to the extent your income-related expenses exceed the €1,230 employee lump sum. If your employer has taxed the commute at a flat 15%, the flat-taxed amount reduces the deductible allowance. This refund via the tax return is not included in the calculator.

Guide: Company Car Calculator

Company Car Tax in Germany 2026: The 1% Rule, Commute and Logbook Explained

Electric Company Cars: The 0.25% Rule, the €100,000 Limit and What Hybrids Pay

Logbook or 1% Rule: When the Effort Pays Off for a Company Car

Company Car and Working From Home: Taxing the Commute Less With the 0.002% Rule

Gross to Net With a Company Car: How to Read Your Payslip

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