Why electric company cars are so cheap
No other company car is favoured as much for tax purposes as a fully electric car. Instead of 1% of the gross list price, you are taxed on only 0.25% a month, because under § 6(1) no. 4 sentence 2 no. 3 EStG only a quarter of the list price is applied. The rule applies to vehicles acquired between 1 January 2019 and 31 December 2030 that have no CO₂ emissions.
Which price limit applies to your car
The quarter is only granted up to a certain gross list price. The limit has been raised several times, and what counts is the date the vehicle was acquired, not the date you received it:
| Acquired | Price limit for 0.25% |
|---|---|
| after 30 June 2025 | €100,000 |
| 1 January 2024 to 30 June 2025 | €70,000 |
| 2019 to 2023 | €60,000 |
The increase to €100,000 comes from the German investment programme act of 14 July 2025. If the list price exceeds the limit, the car does not lose the relief entirely: it is then valued at half the list price, i.e. 0.5%.
How the calculation works
The list price is first quartered and only then rounded down to full €100. This is set out in the Federal Ministry of Finance letter of 5 November 2021. The reduced value also applies to the commute surcharge of 0.03% per kilometre of distance.
Example 1: electric car with a €45,000 list price, 20 km commute. €45,000 ÷ 4 = €11,250, rounded down to €11,200. Private use €112, commute €67.20, taxable benefit €179.20 a month. At €5,000 gross and tax class I this costs you about €87 net according to our company car calculator.
Example 2: electric car with a €65,000 list price, acquired in autumn 2025. The €100,000 limit is met. €65,000 ÷ 4 = €16,250, rounded down to €16,200. The taxable benefit is €162 plus €97.20 for the commute, a total of €259.20. Had the car been acquired in March 2025, the then limit of €70,000 would also have been met. Had it cost €75,000 and been acquired in March 2025, however, only half the list price would apply.
Example 3: electric car with a €110,000 list price. The limit is exceeded, so €55,000 is applied. The taxable benefit is €550 plus €330 for a 20 km commute, i.e. €880 a month.
Plug-in hybrids: 0.5% only under conditions
Externally chargeable hybrids get half the list price if they meet one of two conditions: at most 50 g CO₂ per kilometre, or an all-electric range of at least 80 km for acquisitions from 2025. For acquisitions from 2022 to 2024, 60 km is enough, for 2019 to 2021, 40 km. The figures in the certificate of conformity are decisive. If the hybrid meets neither condition, the full 1% rule applies.
Unlike electric cars, hybrids have no price limit. An expensive hybrid with sufficient range is therefore always valued at 0.5%.
Charging at work and at home
If your employer charges the car at the workplace, the electricity is tax-free. If you charge the company car at home, your employer can reimburse the electricity costs tax-free, either based on a meter or via monthly flat rates. This makes an electric company car even more attractive. The EV cost calculator gives an overview of the total cost of an electric car.
Conclusion
If you have the choice, an electric company car often saves several hundred euros of tax and contributions a year. Before ordering, check whether the list price including optional extras stays below the limit. A single equipment package can make the difference between 0.25% and 0.5%.